A home equity line of credit, commonly called a HELOC, is one of several different home loan options that can help you fund your home renovation. Lake Region Bank has helped many homeowners turn dreams into reality with this flexible loan. Let’s take a closer look at how a HELOC works and how it can help you finance your home improvement project.
What Is a HELOC?
A home equity line of credit (HELOC) allows you to use the equity you have in your home as cash in the form of a line of credit. A HELOC can be a first or second mortgage on your primary residence. It has its own payment schedule and interest rate that is separate from any other mortgage on your home.
What Can I Use a HELOC for?
You can use the cash from your HELOC to fund any type of home improvement project you wish. Minnesota homeowners have used HELOCs to remodel a basement or kitchen, build a new garage, replace their roof or windows, build an addition, update landscaping, or complete another big-ticket home improvement project.
How Does a HELOC Work?
The application process for a HELOC is similar to that for a mortgage or other loan. Lake Region Bank’s home loan team will provide term and rate options for the total amount you believe you’ll need to finance.
Once you have closed on your HELOC, you can transfer funds from the HELOC to your checking account as needed, up to the total amount of the line of credit. You only pay back what you’ve transferred, plus the interest owed. Rates for HELOCs vary daily. Our home lending team can share current interest rates with you.
Am I Eligible for a HELOC?
Like other mortgage loans, HELOCs have minimum credit score, income, and other requirements. Our mortgage lenders can help you decide if a HELOC is the right financing option for your project.
Apply for a HELOC
Applying for a HELOC is easy. The Lake Region Bank lending team is here to help you understand if a HELOC is the right choice for you. Get in touch with us at (320) 235-5900 or fill out our interest form.