Zero in on a HELOC

There are several easy ways to access the funds in your line of credit.

• Transfer funds from your line of credit to another UW Credit Union account directly from Web Branch.
• Visit a branch to get a cashier’s check.
• Request checks for your home equity line of credit.

With a home equity line of credit (HELOC) from UW Credit Union, you can borrow up to 100% of your home’s equity as a line of credit. It’s very convenient, and it works similarly to a credit card. Borrow what you need, when you need it, until you reach your credit limit. Here are more details about using your HELOC:

Withdrawing money during the draw period: This is the set amount of time (usually five years) that you can borrow from your line of credit. You can extend your draw period, depending on your credit situation.

Repaying during the draw period: During the draw period, you can make the minimum payments on what you’ve borrowed, however we encourage paying more to reduce the balance.

Repayment period: Once the draw period ends, you won’t be able to withdraw funds. At this point, your loan enters the repayment period, when your payments will include both principal and interest. These payments will be a lot higher than the interest-only payments you made during the draw period.

The introductory rate on the home equity line of credit begins as soon as you have access to the line of credit. Typically, this is three business days after your loan closing. The duration of your introductory rate will depend on the specific details of your HELOC offer. After that, any balances will be at the standard rate which is indexed to The Wall Street Journal Prime Rate.

The APR is subject to change monthly but cannot exceed 18%. APRs on the home equity line of credit also have a floor rate, depending on the product type.