Turn Equity into Opportunity with a HELOC.

✓ Unlock up to 95% of your property’s equity

✓ Secure rates lower than unsecured loans

✓ Draw from your credit line on your terms, borrow what you need, when you need it.

✓ Apply in minutes and get fast decisions


What is a Home Equity Line of Credit (HELOC)?

A Home Equity Line of Credit (HELOC) is a type of revolving credit secured by the equity in your home. It offers flexibility, allowing homeowners to borrow repeatedly during its 10-year draw period. As you repay, the available credit is replenished, enabling further borrowing based on your needs. After the draw period, a 20-year repayment phase begins. One of the notable benefits of a HELOC is its cost-effectiveness: you’re only charged interest on the amount you borrow.

Applying for a HELOC

For a HELOC application to be successful, you must have sufficient home equity. Typically, you can borrow up to 95% of your primary home’s value, minus any outstanding mortgage. Getting approved for a HELOC depends on several factors:

  • Creditworthiness and credit history
  • Employment stability
  • Monthly income versus monthly obligations

It’s similar to the process you underwent for your initial mortgage, ensuring you can manage this new line of credit responsibly.

Put your Home Equity to Work for You

Transform your home’s value into a financial tool. Whether it’s for debt management, home improvements, or unexpected expenses, our easy 5-minute online application is the first step. Receive personalized financial options within just 2 business days and embrace your next move with confidence.

Benefits of a HELOC

Cost-Effective Borrowing

Experience affordable borrowing through a HELOC, with lower interest rates than most credit cards and personal loans. This cost-effectiveness is a key advantage, making financial management easier.

Flexible Funding Source

Utilize the flexible nature of a HELOC, withdrawing funds as needed. Your available credit replenishes upon repayment, providing a continuous, convenient source for various financial needs.

Simple and Fast Application

Enjoy a straightforward, five-minute application process. Receive personalized loan options within just two business days, supported by our expert loan partners to answer all your inquiries.

Top 3 Smart Uses for Your HELOC

Major Home Improvements

Invest in your home's future with a HELOC. Perfect for large-scale projects like kitchen remodels or the creation of an outdoor oasis, a HELOC turns your home equity into a gateway for enhancement and comfort. Make the dream changes you’ve been envisioning and potentially increase your property's market value.

Strategic Debt Consolidation

Lighten your financial burden by consolidating debt with a HELOC. Transfer balances from high-interest credit cards or student loans to a HELOC and enjoy potential savings with lower interest rates. Streamline your finances, manage fewer accounts, and make a practical move towards financial freedom.

Financing Major Life Expenses

Plan your life's major investments wisely with the flexible, low-interest funds from a HELOC. Whether you're funding a child's college tuition, purchasing a new vehicle, or investing in your passions, a HELOC offers the financial leeway you need. Embrace the freedom to make large purchases without the financial strain typically associated with traditional loans.

How to get a Home Equity Line of Credit

The process for getting a HELOC is simple.

  • Share Your Requirements

    Fill out our online form in just 5 minutes to help us assist you better.

  • Connect with a Loan Partner

    You’ll be connected with an experienced Federal Hill Mortgage Loan Partner ready to help you determine the right product for you.

  • Complete the Process

    Your FHM loan partner will handle the submission of your home equity application, ensuring you can access your funds swiftly.

Common questions about Home Equity Lines of Credit (HELOC)

  • A Home Equity Line of Credit (HELOC) is a revolving credit line allowing homeowners to borrow against the equity in their home, with the house serving as collateral. Unlike a home equity loan, a HELOC provides flexibility by letting you borrow, repay, and borrow again up to your credit limit during the "draw" period.

  • A HELOC has two phases: the draw period and the repayment period. During the draw period, usually up to 10 years, you can borrow funds up to your credit limit and are often required to make interest-only payments. The repayment period follows, where you pay back the principal plus any remaining interest, typically over 15 to 20 years.

  • The flexibility of a HELOC is a significant benefit, allowing for repeated borrowing and repayment without additional paperwork. The interest rates are generally lower compared to credit cards, and the interest paid may be tax-deductible. Moreover, HELOCs are ideal for handling unexpected expenses or large projects like home renovations.

  • A HELOC can be utilized for a myriad of purposes including home improvements, debt consolidation, education expenses, emergency funds, or even for funding a small business. The flexibility of a HELOC makes it a versatile financial tool.

  • The Annual Percentage Rate (APR) of a HELOC is influenced by several factors including your credit score, the loan-to-value ratio, the amount of credit line, and the location of the collateral property.

  • During the draw period, you’re usually required to make minimum payments that cover the interest charges on your outstanding balance. Once the repayment period commences, your monthly payments will increase as you'll be paying both principal and interest to pay off the loan by the end of the term.

  • Yes, most HELOCs allow for early repayment without penalties, but it's crucial to check your loan agreement or consult with your lender to understand any terms or conditions that may apply to early repayment.