Home Equity Line of Credit
Texas homeowners can tap into the equity in their homes with a Home Equity Line of Credit (HELOC).*
A HELOC is a revolving-loan product that allows you to access your available credit line, as needed, during your draw period.** Your credit line is replenished every time you pay it down. For example, you can draw funds to add a new family room and, as you pay that balance down or off, you can draw from additional funds for other important uses, up to your available limit.
Sample uses of HELOC funds include:
- Higher education
- Debt consolidation
- Purchasing a vehicle
- Home improvements
- Medical expenses
- Cash for other purposes
Features of our HELOC include:
- Variable rate
- Interest may be tax-deductible
- Draw period of 10 years with up to a 15-year repayment period (View our current rate)
- Choose between monthly, semimonthly, or biweekly payment plans. Your payment amount does not fluctuate with rate changes; however, the payment amount does change when a draw is taken
- Financing available up to 80 percent of fair market value
- Generally, no closing costs§
- No prepayment penalties
- Arrange for automatic payments
* RBFCU Home Equity Lines Of Credit (HELOC) are available only on property in Texas. The Texas Constitution requires a 12-day cooling-off period before closing and a 3-day rescission period after closing before initial access to your credit line. All loans are subject to credit approval.
** A minimum $4,000 draw amount is required. No draws are allowed on a HELOC when the HELOC balance is greater than 50 percent of the fair market value of the homestead, as determined when the HELOC was originally granted (even if additional credit limit is available).
Consult a tax advisor concerning your specific situation.
Total debts against the homestead, including HELOCs, are limited to 80 percent of the fair market value of the homestead.
§ Borrower will be responsible for certain closing costs, if required, such as title insurance, appraisal fee and survey costs. Hazard insurance is required.
Lender licensed by the National Mortgage Licensing System under registration number 583215.