Home Equity Line of Credit
As homeowners, our properties are more than just a place to live; they are valuable assets that can help achieve important financial goals. At U.S. Century Bank, we understand the power of home equity, and our Home Equity Line of Credit (HELOC) is a versatile financial tool designed to help you unlock your home's potential. In this blog post, we'll explore the various ways a HELOC can be used to transform your financial landscape, from home improvements to debt consolidation and more.
Transform Your Home with Strategic Improvements
One of the most popular uses for a HELOC is funding home improvement projects. Whether you're planning a major renovation, upgrading your kitchen, or adding an extra bathroom, a HELOC offers the financial flexibility to enhance your living space. By accessing a line of credit with competitive interest rates1, you can tackle these projects without dipping into your savings, ultimately increasing your home's value and functionality. Plus, interest paid on a HELOC may even be tax-deductible2 when used for home improvements, making it a smart financial decision.
Simplify Your Finances with Debt Consolidation
High-interest debt can be a burden, but HELOCs offer a solution. By consolidating multiple high-interest debts, such as credit cards and personal loans, into one manageable monthly payment, you can reduce your overall interest costs3 and simplify your financial commitments. A HELOC typically comes with lower interest rates1 compared to credit cards, allowing you to save money over time. This approach not only streamlines your monthly bills but also sets you on a path toward financial freedom and stability.
Invest in Your Future with Educational Opportunities
Education is a powerful investment in your personal and professional growth. Whether you're looking to further your own education or support a family member's academic journey, a HELOC can provide the necessary funds. By using your home's equity to fund tuition, books, and other educational expenses, you can pursue educational opportunities without compromising your financial well-being. This use of a HELOC allows you to invest in knowledge and skills that can lead to greater earning potential and career advancement.
Plan for Other Major Life Expenses
Beyond home improvements, debt consolidation, and education, a HELOC can be a valuable resource in funding other significant expenses. Whether you're planning a wedding, starting a business, or managing unexpected medical bills, having access to a flexible line of credit can alleviate financial stress. The interest-only payment option during the initial years4 provides additional cash flow flexibility, giving you the breathing room to manage life's financial demands effectively.
A Home Equity Line of Credit from U.S. Century Bank is more than just a loan—it's an opportunity to make the most of your home equity and achieve your financial goals. Contact U.S. Century Bank today to learn more about how a HELOC can empower you to take control of your financial future.
1. APR. The variable APR is based on Prime plus a margin and will vary with Prime. The Prime Rate means the highest per annum “Prime Rate” of interest published from time to time by The Wall Street Journal in its “Money Rates” listings, which was 7.50% as of 12/19/2024. The margin will vary based on your credit score (740 or > at Prime, 700-739 Prime +1%, 680-699 Prime + 1.50%). Your APR will not exceed 18.00% at any time during the term of your account. This APR is based on an “auto-pay” discount of 0.25% from a U. S. Century checking account and a credit score of 740 or higher. The account must be open and funded prior to closing. The discount may be terminated upon closure of the qualifying checking account. Your APR may vary based on credit history, property type, occupancy, lien position, and other factors.
2. Consult your tax advisor concerning interest deductibility.
3. The benefits of a loan for debt consolidation depend on your individual circumstances. Interest payment savings can be made by making monthly payments towards the new, lower interest rate loan in an amount equal to or greater than what was previously paid towards the higher rate debt(s) being consolidated.
4. The term of a HELOC is 30 years: 10-year draw period, 20-year repayment period. During the 10-year draw period, your principal balance will not reduce. Your monthly payment will only cover the interest that has to be paid. The amount you borrow will remain outstanding unless you make principal reductions. At the end of the draw period is when you enter the 20-year repayment phase of your home equity line of credit. In addition to interest, you must begin repaying the principal balance.
The minimum loan amount is $100,000, and the maximum amount is $3,000,000. The amount of your HELOC will depend on the value of your home and your equity in the home. The loan to value will vary based on credit score, property type, and lien position.
Occupancy-Owner Occupied – Single Family Dwelling, PUD and Condominium. Properties owned for at least one year. First and second liens. Property insurance is always required, and flood insurance is required where necessary. Certain property types are not eligible collateral. Property location, Miami-Dade, Broward, Palm Beach, and Monroe counties.
Closing costs apply. There is an appraisal fee for all HELOCs. If the loan does not close and the appraisal fee is collected, the appraisal fee is non-refundable. Closing costs may range from $2,500.00 to $17,000.00 (based on line amounts). A $50.00 annual fee will be charged to your home equity line beginning on the first anniversary of the date on which you opened your account.
For more information on Home Equity products, refer to “What You Should Know about Home Equity Lines of Credit,” a consumer information booklet prepared by the Consumer Financial Protection Bureau.
Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms, and conditions are subject to change without notice.
HELOCs are available to U.S. Citizens and U.S. Residents.
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