Home Loans in 48 StatesARBOR Financial Group · NMLS #236669
HELOC
Most homeowners are sitting on a line of credit they haven’t opened, while carrying high interest credit card balances, paying tuition out of pocket, or funding home improvements. A HELOC from ARBOR lets you draw on what you’ve already built, only when you need it, at a fraction of what unsecured debt costs. We shop across 150+ lenders to find the rate that fits your situation.
Your home secures this line of credit. Rates are variable and payments may increase when the repayment period begins.
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Call today: 866-521-6488NMLS #236669 · Equal Housing Opportunity · NMLS Consumer Access
150+
Lenders shopped for your rate
5 to 10
Years in a typical draw period
80 to 90%
Combined loan to value many lenders allow
620+
Credit score many lenders look for
Put Your Equity to Work
Use your line of credit to pay down higher interest balances, like credit cards.
Draw what you need for tuition, a semester at a time.
Interest may be tax deductible in some cases. Consult a tax advisor.
Fund improvements that add value and may qualify for the tax deduction above.
HELOC Basics
A home equity line of credit, or HELOC, is a revolving line of credit that lets homeowners borrow against the equity in their home. Unlike a traditional loan, it works much like a credit card: you draw funds as needed, up to a preapproved limit, and pay interest only on the amount you use.
Homeowners who need cash for renovations, debt consolidation, tuition, medical expenses or an emergency fund can benefit from a HELOC. If you have significant home equity and stable income, it can be a low cost alternative to high interest personal loans or credit cards, and you only draw what you need, when you need it.
A HELOC has two phases. During the draw period, typically 5 to 10 years, you can withdraw funds as needed and may make interest only payments. Once the repayment period begins, you can no longer draw funds and you repay both principal and interest over a set term. Your credit limit is based on your home equity and financial profile.
HELOCs can carry fixed or variable interest rates, depending on the lender. Some lenders offer convertible HELOCs, which let you lock in a fixed rate on a portion of your balance. Interest only HELOCs are another option and reduce payments during the draw period. An ARBOR loan originator can explain which structures fit your situation.
A HELOC offers flexibility, typically lower interest rates than personal loans, and access to funds only when you need them. Because you only pay interest on the amount you draw, it can be a cost effective way to cover long term projects or unexpected expenses without borrowing a lump sum you do not need yet.
A HELOC may be a good fit if you have substantial home equity, a strong credit score and a need for flexible access to funds over time. A licensed ARBOR loan originator can review your goals, compare HELOC options across lenders and help you decide whether a line of credit or another equity option suits you best.
Applicants should not assume that any debt will be eliminated by refinancing or paying on balances since the debts are consolidated into a new loan. Reduction in payments may reflect longer loan terms and your total finance charges may be higher over the life of the loan. The actual amount of savings may vary.
Why ARBOR
We help homeowners put their home equity to work with HELOC options tailored to their goals. Whether you need funds for renovations, debt consolidation or unexpected expenses, our team offers flexible loan options and competitive rates.
From application to closing, we guide you through a streamlined HELOC process with personalized support. We work with trusted lenders to find the financing that fits your needs.
Ready to tap into your home's equity? Talk with ARBOR about your HELOC options today.
Working With ARBOR
Talk with a licensed ARBOR loan originator
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FAQ
Answers to common questions about HELOCs, including how much you can borrow, draw periods, interest rates and credit score requirements.
Still have questions?
Talk with a licensed ARBOR loan originator about your HELOC options.
866-521-6488[email protected]Browse all mortgage FAQsA HELOC, or home equity line of credit, is a revolving line of credit that lets homeowners borrow against the equity in their home. Instead of receiving a lump sum, you may be able to draw funds as needed during the draw period, depending on lender guidelines and approval.
A HELOC works like a revolving line of credit. You may be approved for a maximum credit limit based on your home equity and financial profile, draw funds as needed during the draw period, and then move into a repayment phase once the draw period ends.
Many lenders may let you borrow up to a combined loan to value ratio of around 80% to 90%, although limits vary by lender. The amount available depends on your home's value, your remaining mortgage balance and your financial profile.
You can use a HELOC for home improvements, debt consolidation, education expenses or other major costs. The approved use of funds may depend on your financial goals and lender guidelines, so it helps to share your plans with your loan originator.
Most HELOCs have adjustable interest rates that may change over time based on market conditions and the terms of your loan agreement. Some lenders may offer fixed rate options for portions of the balance, depending on the loan program.
Many HELOC draw periods last around 10 years, although terms vary by lender and typically range from 5 to 10 years. During the draw period, you may access funds from your approved credit line as needed.
When the draw period ends, the HELOC typically enters the repayment phase. You generally can no longer access funds and must begin repaying both principal and interest on the remaining balance over a set term.
Many lenders may look for a credit score of around 620 or higher, although requirements vary by lender and loan program. A stronger credit profile may improve your chances of approval.
HELOC interest may be tax deductible in some cases, such as when the funds are used for home improvements. Consult a tax advisor about your own situation before you rely on the deduction.
In some cases, yes. A HELOC may be refinanced or replaced with a new home equity loan, a new HELOC or a cash out refinance, depending on your financial profile and available home equity.
In many cases, the HELOC process may take several weeks from application to final approval. Timelines vary depending on the lender, your documentation requirements and how the property is valued.
*Important notice: By refinancing your existing loan, your total finance charges may be higher over the life of the loan. The content provided within this website is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply. ARBOR Financial Group is not affiliated with an agency of the federal government, HUD or FHA. THIS IS NOT A GOVERNMENT DOCUMENT. HUD or FHA did not distribute or approve this material.
