Fund your future with a HELOC
A home equity line of credit (HELOC) lets you borrow against the value you’ve built up in your home. You can finance renovations, a wedding, college tuition or even consolidate your debt. It also comes with a rate lower than most credit cards.
Why choose a HELOC?
A HELOC allows you to borrow only what you need when you need it and often come with lower interest rates than credit cards, helping you save on interest over time.* With Rate’s HELOC, you can get your funds quickly, often in as little as five days.**
HELOC guidelines
To qualify for a HELOC, you will need:
- Good credit score
- Low debt-to-income (DTI) ratio
- Understanding of combined loan-to-value (CLTV) ratio
A HELOC has two main phases: a draw period and a repayment period. During the draw period, commonly 10 years, you can borrow as needed up to your limit and make interest-only payments. The repayment period begins when the draw period ends and can last up to 20 years or more, and you’ll then begin to repay both the principal and interest.
Most lenders won’t allow you to borrow the full equity of your home and instead use a combined loan-to-value ratio (CLTV) that considers your mortgage balance. Rate offers HELOCs with CLTVs as high as 85% for qualified borrowers.
What are the current HELOC rates?
Your rate will depend on several factors, including credit history and debt-to-income ratio. Apply for a pre-approval today to get personalized HELOC rates and start the borrowing process.
How to apply for a HELOC
Applying for a HELOC is a straightforward process, and with Rate’s digital application**, you can complete the process in about 10 minutes. Follow these steps.
1. Review your finances
Check your credit score, income and current mortgage balance to understand your combined loan-to-value ratio (CLTV).
1. Review your finances
Check your credit score, income and current mortgage balance to understand your combined loan-to-value ratio (CLTV).
2. Determine your needs
Decide how much of your line of credit you plan to use and be sure to understand your draw and repayment periods to ensure the HELOC fits your financial goals.
3. Gather key documents
Have proof of income, details about your mortgage and a home appraisal ready.
4. Apply online
Once you submit your application, your Loan Officer will help you from there.
“The Guaranteed Rate Team was very easy to work with! Information was clear and all available through my portal for review at all times. Additionally the team was very responsive to any and all questions we had along the way.”
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Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.
Rate home equity line of credit (HELOC) is an open-end product where the full loan amount (minus the origination fee) will be 100% drawn at the time of origination. The initial amount funded at origination will be based on a fixed rate; however, this product contains an additional draw feature. As the borrower repays the balance on the line, the borrower may make additional draws during the draw period. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. Accordingly, the fixed rate for any additional draw may be higher than the fixed rate for the initial draw. This product is currently not offered in the states of New York, Kentucky, West Virginia, Delaware and Maryland. The HELOC requires you to pledge your home as collateral, and you could lose your home if you fail to repay. Borrowers must meet minimum lender requirements in order to be eligible for financing. Available for primary, second homes and investment properties only. Dependent on minimum credit score and debt-to-income requirements. Occupancy status, lien position and credit score are all factors to determine your rate and max available loan amount. Not all applicants will be approved. Applicants subject to credit and underwriting approval. Contact Rate for more information and to discuss your individual circumstances. Restrictions Apply.
*Savings, if any, vary based on the consumer’s credit profile, interest rate availability, and other factors. Contact Rate for current rates. Restrictions apply.
**Approval may be granted in five minutes but may be subject to verification of income and employment. Five business day funding timeline assumes closing the loan with our remote online notary. Funding timelines may be longer for loans secured by properties located in counties that do not permit recording of e-signatures or that otherwise require an in-person closing. In addition, funding timelines may be longer if we cannot readily verify that your property is in at least average condition with no adverse external factors with a property condition report and may need to order a desktop appraisal to confirm the value of your property.
Sources:
https://www.hud.gov/program_offices/housing/sfh/ins/streamline