Home Equity Line of Credit

Are you looking to take out equity to remodel your home, pay for medical bills or education or consolidate debt? A Home Equity Line of Credit may be the way to go. Click below to learn more today!

Frequently Asked Questions

How does home equity work?

Your home equity is the amount your home is worth minus what you currently owe your lender. Each time you make a payment on your mortgage, you add to the amount of your home that you own.

Can I pay off a HELOC early?

Yes, you can pay off a HELOC early. There are no prepayment penalties with these loans. The best time to pay off the principal of your loan is during the draw period. You are only required to pay the interest during this time, but paying extra toward your principal as well during this period can help you avoid paying more during the repayment period.

How long does the closing process take for a HELOC?

The time to closing for a HELOC line is typically less than the closing process on a traditional mortgage. In most cases, you should expect to close within 45 days of submitting your application for a HELOC loan.

What’s the difference between a HELOC and a home improvement loan?

The biggest difference between a HELOC and a home improvement loan is that a HELOC borrows against the existing equity in your home, while the latter does not. Because of this, home improvement loans have a lower limit that you can borrow. These loans can also carry higher interest rates than HELOCs.

The money from HELOCs also doesn’t have to be used for home improvement. It can be used in other ways, from debt consolidation to making major purchases.

kitchen remodel in modern home with home equity line of credit

A home equity line of credit (HELOC) is a type of second mortgage that enables homeowners to borrow money against equity they have in their home and receive that money as a line of credit. Borrowers can use HELOC funds for a number of purposes, including home improvements, education and the consolidation of high-interest credit card debt.

When you may want to consider a Home Equity Line of Credit

  • If you have a reliable income. Most lenders will need proof of income to confirm you’ll be able to pay off your loan payments
  • If you have a good credit score. Typically, credit scores above 650 will approve you for a loan although a credit score above 700 is ideal.
  • If you have at least 15-20% home equity
  • If you have a responsible payment history in the past
  • If you have a low debt-to-income ratio
  • If you’re considering making home improvements, need to pay for education or medical bills, or need to consolidate debt

Home Equity Line of Credit Loan Features

  • Access up to 80% of your home’s equity.
  • No points.
  • No appraisal fees for single-unit loans.
  • No annual fee.
  • No closing costs.
  • Loan limit up to $250,000.

How To Pay Back A Home Equity Line of Credit

There are two phases in the process of repaying a HELOC, the borrowing phase (otherwise named the draw period), and the repayment phase. You’ll need to make payments during both phases.


The draw period is the first phase and begins when your line of credit is open and available for use. You’re able to borrow from your line of credit as needed and typically can make minimum payments or interest-only payments on the amount you’re borrowed until you reach a certain limit where you’ll begin to start to pay off a portion of what you owe before you can continue borrowing.

When you reach the end of the draw phase, the second phase or repayment period begins and you won’t be able to access HELOC funds and will have to begin making monthly payments to both the principal and interest.

The length of both periods depends on the type of loan that you get. Contact Premier Plus lending to learn more about your options if you’re considering taking out a Home Equity line of Credit.

Contact Us To Discuss Your Loan Options, Today!

We’re looking forward to helping you find the best loan options for your specific needs