A home equity line of credit, or 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. So, how does a HELOC work?
What Is a HELOC?
A HELOC is a home equity line of credit. It 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 with a payment schedule and interest rate that is separate from your primary mortgage.
What Home Improvements Can I Make with a HELOC?
You can use the lump sum from your HELOC to fund any type of 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?
You apply for a HELOC in a similar way to 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. Rates for HELOCs vary day to day. 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. You can get in touch with our home loan team at (320) 235-5900 or fill out our interest form.