A credit union home equity line of credit (HELOC) allows you to borrow against the equity in your primary residence or another house you own. HELOCs work similar to credit cards. You can borrow funds as often as needed up to your credit limit during the draw period, which may be up to 10 years, and your credit limit is replenished when you repay the borrowed money. You can also make interest-only payments during the draw period, which can be helpful with cash flow management. HELOC terms and rates are often better than other borrowing options, like personal loans, which help you save.
There are no restrictions on what you can do with the money you borrow with a credit union HELOC. These loans can be used for many different purposes, including a home renovation, debt consolidation, a wedding, a vacation, and unexpected expenses. How you use the money you borrow is up to you!
After the HELOC draw period ends, you transition into the repayment period, which may last up to 20 years. During the draw period, you may have made interest-only payments on the funds you borrowed. However, in the repayment period, you will repay both the principal and the interest. The remaining loan amount will convert into a traditional loan, and you will make fixed monthly payments with a fixed interest rate.
A HELOC and a home equity loan are both loans that are backed by the equity in your home. However, they differ in how you access and repay the money you borrow. A HELOC allows you to borrow funds when you need them up to your credit limit during the draw period. You can make interest-only payments during the draw period or repay the money you borrowed to replenish your credit limit. With a home equity loan, you borrow a lump sum and then repay it with fixed monthly payments over a specific term.
If you have a HELOC and you sell your home, the outstanding HELOC balance must be paid off as part of the closing process.
Yes, but you may need to provide additional documents to verify your income. You may need to provide tax returns, bank statements, profit-and-loss statements, and other records as requested.
If you do an internet search for “home equity loan near me,” you are sure to get several options. However, obtaining a HELOC from a credit union is often the most affordable option. Baton Rouge Telco offers an affordable HELOC with a competitive annual percentage rate (APR). There are also no closing costs or monthly fees, which helps you save even more. The line amount depends on your creditworthiness.
Yes, you must become a Baton Rouge Telco member to apply for our HELOC. We require all new members to open a regular savings account with a $5 minimum balance.
You can join if you live, work, or attend school in one of these parishes: Ascension, East Baton Rouge, East Feliciana, Iberville, Livingston, Pointe Coupee, Saint Helena, Tangipahoa, West Baton Rouge, or West Feliciana. Becoming a member opens the door to exclusive benefits and superior service.
Before you begin the balance transfer process, let's get a BR Telco Visa credit card opened for you. We offer two great credit cards to fit your lifestyle. Our credit cards feature no annual fees, no balance transfer fees, and practically unbeatable rates. You can begin your online application here.
Complete this short form and we’ll have one of our experts contact you to discuss options.
*APR = Annual Percentage Rate. All rates, fees, and terms are subject to change, not guaranteed, and are based on credit qualifications and lending guidelines. $199 Processing Fee required.