Home Equity Line of Credit (HELOC)

Unlock the power of your home equity by applying to BankPacific’s HELOC loan!

Get approved for up to $400,000 in a home equity line of credit!*

Use your funds for a variety of expenses and investments that’s right for you! You decide how you spend it and when you want to spend it!

  • Withdraw Cash
  • Renovate Your Home
  • Install Solar Panels
  • Pay for school or business expenses
  • Invest in new opportunities
  • Pay off expensive credit cards
  • Make online purchases
  • Take a vacation
  • Use it for everyday shopping
  • Purchase a boat, car or use it for repairs
  • Remit money to family and friends

Best of all, you can access your HELOC funds using our BankPacific VISA Debit Card! Now, that’s convenient!

 

What does HELOC stand for?

HELOC is short for Home Equity Line of Credit. What is a home equity line of credit? A home equity line of credit, or HELOC, is a mortgage that gives you access to cash based on the value of your home. You can draw from a home equity line of credit and repay all or some of it monthly, somewhat like a credit card. With a HELOC, you borrow against your equity, which is the home’s value minus the amount you owe on the primary mortgage. You can also get a HELOC if you own your home outright, in which case the HELOC is the primary mortgage rather than a second one. When you’re shopping around for a loan, borrowing from the equity in your home will often get you the best rate.

 

How a HELOC works

Much like a credit card that allows you to borrow against your spending limit as often as needed, a HELOC gives you the flexibility to borrow against your home equity, repay and repeat.

 

How much can I borrow?

The maximum amount of your home equity line of credit will vary based on the value of your home, what percentage of that value the lender will allow you to borrow against and how much you still owe on your mortgage.

 

How you pay back a HELOC

A HELOC has two phases of payment:

Draw period: During the draw period, you can borrow from the credit line by check, or transfer. Monthly minimum payments often are interest-only during the draw period, but you can pay principal if you wish. The length of the draw period is 5 years.

Repayment period: During the repayment period, you can no longer borrow against the credit line. Instead, you pay back the loan in monthly installments that include principal and interest. The length of the repayment period is 15 years.

Have more questions? Visit us today, and we’ll gladly assist you with any questions you may have regarding HELOC or any other home equity loans.

 

HELOC DISCLOSURE (1) Line of credit amount depends on home equity borrower’s creditworthiness and occupancy. (2) Annual Fee: You will be assessed a $100 annual fee on your first periodic statement and annually thereafter during the draw period. (3) Home equity lines of credit (HELOC) are variable rate loans, and the interest rate is subject to increase after consummation of the loan on a monthly basis. (4) Closing costs range between $750 and $8,500 for credit lines of $400,000. Contact a representative for additional details. (5) BankPacific, Ltd will require an appraisal for all HELOCs. (6) Interest may be tax deductible; consult a tax advisor for further information regarding the tax deductibility of interest and charges. (7) Property Insurance: Property insurance is required. (8) Multiple BankPacific, Ltd. Loans: Multiple BankPacific, Ltd. loans and HELOCs are available as long as the borrower and collateral qualify. For HELOCs, the total indebtedness cannot exceed $500,000 for all BankPacific, Ltd. HELOCs combined. (9) BankPacific, Ltd. does not lend on: (a) Mobile homes (b) Co-ops or time-shares c) Properties that are currently listed on the market for sale (d) Commercial property or property used for commercial purposes, even if a residence is part of the property (e) Undeveloped property (land only) (f) Properties with more than 4 units (g) Properties that are currently under major construction/renovations: Property must be fully livable, with no safety issues. (Examples: no missing rails from stairs/decks, no open walls with wires showing, missing kitchen appliances/counters, missing bath fixtures or unfinished pool). (10) Home Equity Line of Credit: (a) This Account has a Draw Period of 5 years, followed by a repayment period of 15 years. (b) If only minimum payments are made during the draw period, the loan balance will not decrease. (c) The maximum Combined Loan To Value (CLTV) available is dependent on credit qualification. (d) Rates vary depending on owner occupancy and CLTV. (11) Minimum and Maximum Loan Amount Requirements: – For owner-occupied property the minimum loan amount is $25,000 and the maximum amount is $400,000 with a CLTV of 80% or less of the fair market value. – For non owner-occupied property the minimum loan amount is $25,000 and the maximum amount is $300,000 with a CLTV of 75% or less of the fair market value. (12) Refinancing existing BankPacific, Ltd. mortgages and Home Equity Lines of Credit, do not qualify for the introductory rate offer. HELOC Disclosure as of 11/18/2022 | BANKPACIFIC, LTD. – Line amount shall not exceed the first mortgage principal balance. Other terms and conditions apply; call 671-479-1179 to speak with a representative for details. We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act. *APR = Annual Percentage Rate