Remote Deposit Capture
Credit Card
Trust Portfolio
Trust Portfolio
Trust Portfolio
A young family playing together on a couch.

Home Equity Line of Credit

Open a home equity line of credit

Big expenses on the horizon? Your home’s equity can make them happen. A CVNB home equity line of credit may be your solution.

What is a HELOC?

A home equity line of credit, or HELOC, is a 10-year line of credit that allows you to borrow the funds, whenever you want. After the draw period, the HELOC goes into repayment and you’ll pay the balance over a set period of time.


What can I do with HELOC?

You can use the equity in your home to find money quickly for major purchases or expenses.

Some expenses a HELOC can be used for include:

  • Home remodel or improvements, such as a new pool
  • Pay for college tuition or vacation
  • Start up a business
  • Debt consolidation

Why a HELOC?

HELOC interest rates are variable and are lower than a credit card or unsecured loan. There’s also less risk in borrowing against the mortgage on the property.

Find out your equity and apply

The first step in getting approved for a HELOC is knowing how much equity you have in your home. A mortgage specialist will request an appraisal to determine your home’s value, then factor in your outstanding mortgage balance to determine the equity. As with any other loan application, they may request a credit report and documentation such as proof of income to assess loan-to-value.

There’s no application fee for a HELOC. Closing costs are discounted and often there are none. 

Apply for a HELOC by using the CVNB home loan application. After you complete the online application, a CVNB loan specialist will contact you to discuss how a HELOC will work for your financial needs.


FAQs
 
Q. How much equity can I get a loan against?
A. Equity is the value of your home less the outstanding balance on an existing mortgage. This amount determines your loan, or line of credit. If you have 15% or more equity in your home, you have the collateral needed for the HELOC. Then it would come down to pre-qualifying you and making sure you (the borrower) can repay the loan at that point in time.


Q. What can a home equity line be used for?
A. A home equity line of credit is a very flexible loan product. It can be used for home remodeling and/or improvement projects, expenses like a vacation or college tuition payment or consolidation of credit card debt or other types of debt. 


Q. How do I qualify for a HELOC?
A. You must have a source of repaying the loan – wages, investment income, social security, pension, etc. You must own a home, and you must have at least 15% equity in your home, including all mortgage balances. Your  credit score and financial condition will be looked by your local lender during the application process.

A dad and his young child playing together on a couch.

Mortgage Rates

Looking to purchase or refinance a home? Talk to CVNB
about how we can get you the best rates around.