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ChoiceLine Home Equity Line of Credit

Whether you want to update your home, cover unexpected costs, or pursue your passion, your home can unlock the funds you need.

Credit lines available for up to 100% of your home’s value

A home equity line of credit (HELOC) is beneficial because it provides flexible, low-interest access to the funds you created by building equity in your home, that can be used for a variety of purposes, from home renovations to debt consolidation, all while allowing you to keep your existing low-rate primary mortgage. 

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Lower Interest Rates
Because homes are used as collateral, ChoiceLine HELOCs are secured loans – resulting in lower interest rates and potentially significant savings. 
More Flexibility
ChoiceLine HELOCs are revolving lines of credit, meaning you can withdraw funds as needed and make payments on the amount you use, not the full approved loan amount. You can also re-use funds as you pay your balance.  
A Multi-Use Option
Use HELOCs to pay off high-interest loans, pay educational expenses, or as an emergency fund.  
Gain Access to Larger Funds
If you have significant equity in your home, you could access a larger amount of money, often more than you would get with personal loans. 
Maintain Current Mortgage Rate

Choiceline HELOCs are essentially second mortgages, meaning you don’t need to refinance your primary mortgage. This ensures you can keep your lower rate on that mortgage. 

Tax Advantages

Interest paid on ChoiceLine HELOCs may be tax deductible if funds are used to significantly improve the home the loan was secured against.

Home Equity rates

80% loan-to-value

Variable APR* as low as

7.00%

Over 80% loan-to-value

Variable APR* as low as

9.00%

*Individual rates may vary. Rates, terms and conditions are subject to change and may vary based on creditworthiness, age and condition of collateral, and product selected. All loans subject to approval. Annual Percentage Rate (APR) on ChoiceLine Equity is as low as 7.00% based on a maximum 80% loan-to-value on a borrower's stick built primary residence. Current range of variable rates = 7.00%-9.00% Higher APR on manufactured homes classified as real property and on loan-to-values exceeding 80%. The variable APR is subject to change monthly, based on The Wall Street Journal Prime Rate. Draw period for line is 10 years. Value method and cost determined during application process. If a property appraisal is required borrower pays for appraisal costs. Fixed advances may be taken under the line for a fixed term and APR; ask us for current rates, terms and applicable charges. Property insurance is required. Borrower is responsible for any escrow fees if a home equity line requires closing in escrow; applicable charges will be disclosed prior to closing. Property must be owner occupied and located in the states of Washington or Oregon. For details, please contact Peak Credit Union at (800) 258-3115. Appraisals for a single unit property range from $750-$800. NMLS #530610

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Wondering what you need to qualify for a HELOC?

Frequently Asked Questions

What is “home equity”?

Home equity is the portion of your home’s value that you truly “own.” It is calculated as the appraised market value minus what you still owe on mortgages or other liens.

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

A HELOC is a revolving line of credit secured by the equity in your home. You can draw funds up to your approved credit limit, repay, and draw again during the draw period.

What is the difference between a home equity loan and a HELOC?
  1. A home equity loan delivers a lump sum of cash up front, typically with fixed interest and fixed repayment terms.
  2. A HELOC (Choiceline) works more like a credit line: you can draw funds (up to a limit), repay, and draw again during a draw period. Interest is variable. 
How much can I borrow?

The amount depends on your home’s value, outstanding balances on mortgages, and the credit union’s maximum allowed combined loan-to-value (CLTV).

We offer two tiers:

  1. Up to 80% of the home’s CLTV.
  2. 80% to 100% of the CLTV

CLTV is the total amount you owe on your home, including your mortgage and     HELOC, compared to your home’s value. For example:

Value: $400,000

+ 1st Lien (Mortgage): $200,000

+ HELOC: $100,000 

= 75% CLTV

= 75% CLTV 

The actual amount you can borrow also depends on your credit score, income,     debt-to-income ratio; all loans are subject to underwriting approval and the credit union’s policies. 

Is there a minimum I must borrow?

Yes. The minimum credit line amount is $10,000. 

How long does approval and closing take?

It varies, but the majority of our Choiceline HELOCs close in a few weeks. 

How can I use the funds?

The funds are flexible. Examples include; home improvements, debt consolidation, education, and medical expenses.  

Is the interest tax-deductible?

As of now, under the U.S. tax rules, interest on home equity debt may only be deductible if the funds are used to “buy, build, or substantially improve” the home used to secure the loan. Consult a tax advisor to determine eligibility.

How many home equity loans/lines can I have on my property?

Generally, only one home equity loan or HELOC is allowed on your property.

What is the repayment structure?

The minimum monthly payment will be $100.00 per $10,000 of the outstanding balance after each advance or a portion thereof. 

Can I cancel after closing (Right of rescission)?

Yes. Under the Truth in Lending Act (TILA), for primary residence, borrowers have three business days after closing to cancel (rescind) the loan without penalty.

How do I pay off or close a HELOC?

You pay the outstanding balance and applicable interest through your normal payment channels. Then, contact the credit union to formally close the HELOC account.  

What if I sell my home?

When you sell your home, the funds from the sale are first used to pay off any outstanding liens, including your home equity loan or line of credit. After that, any remaining proceeds will be paid to you.

Can the credit union demand repayment early (call the loan)?

Under most circumstances, the credit union cannot demand early payment unless there is a default or violation of the loan terms–such as failure to pay property taxes, insurance, or transfer of property ownership. 

Are there residency or ownership requirements?

Yes. The property must be your primary residence or secondary residence. 

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