Home Equity Line of Credit (HELOC)

If you’re a homeowner facing some upcoming big expenses like college or home improvements, a Home Equity Line of Credit (HELOC) may be just the solution.


Using a HELOC from the Credit Union makes sense. The application process was smooth and fast. I'm satisfied."

Scott B. | Wendell

A HELOC is a line of credit that allows you to borrow against the value built up in your primary, vacation or second home, or a rental property. A HELOC is open-ended, so you can withdraw only the money you need, as you need it, within a specific time period. Borrow any amount up to your credit line at any time within 15 years, subject to terms of the account agreement, and you only pay interest on the amount advanced.

Value of your home minus amount owed on your mortgage equals home equity.

HELOC and your mortgage

You can borrow up to 90% of the appraised value of your home, minus the amount owed on your mortgage. You can borrow up to 65% of the appraised value of a rental property. Interest payments from your HELOC may be tax deductible; consult your tax advisor.

In addition, your HELOC can serve as Overdraft Transfer Service for your LGFCU Checking Account. Funds will be transferred to the Checking Account in $500 increments from Home Equity Lines of Credit. Overdraft transfers occur in whole dollar amounts. Each overdraft transfer is subject to a service fee in the amount of $0.50.

You can access more cash even faster with a real-time loan advance from your HELOC.

Is a HELOC right for you?

Primary residences, vacation or second homes, and rental properties are eligible for HELOCs. The property must be located in North Carolina, South Carolina, Virginia or Georgia.

Next Steps

Enjoy the flexibility of having the cash you need, when you need it! Apply for a Home Equity Line of Credit today.

HELOC is subject to approval. APR =Annual Percentage Rate and is based on the current index plus a margin. The APR is a variable rate, subject to change quarterly. The index is based on the 26-week Treasury bill rate for the quarter and is set on or after the 15th day of the second month after the end of each calendar quarter adjusted up to the nearest 0.25%. The maximum quarterly rate adjustment is 0.50%. Over the life of the loan the maximum APR will be the initial rate plus five percentage points or 12.75% APR, whichever is higher, but never more than 18% APR. The payment amount will change if the APR changes. Costs and fees associated with a HELOC may range from $0 to $1,600. HELOC interest payments may be tax deductible; consult your tax advisor. HELOCs are only available in North Carolina, South Carolina, Virginia or Georgia.