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How does a Home Equity Line of Credit (or a HELOC) Work? [Video] - Transcript
How does a Home Equity Line of Credit (or a HELOC) Work? Using the equity you have in your home can be a quick and convenient way to access funds for your next major project or purchase. But there are a few key things to know before you begin!
First, it’s important to understand both the draw period and repayment period. From the date you open your line of credit you may have ongoing access to available funds for up to 10 years. This is known as the draw period. After the draw period ends, your account begins the repayment period, which typically lasts 20 years until the maturity date.
Next, you need to know how to access your available funds. We think your funds should be available when you need them. That’s why you can log on to Online or Mobile Banking, or call 24-Hour banking, to transfer money directly to your U.S. Bank checking account; write a check; or use your U.S. Bank Visa Access card while out shopping for that big-ticket item, OR visit a branch to withdraw funds.
Last, how do you make payments?! Whether you have a variable or fixed rate on your balance, a minimum payment is due each billing cycle during the draw period and the repayment period. And like accessing your funds, we think you should have options... so go online and setup auto-pay, write a check, visit a branch, or call 24-Hour banking.
Whether you’re making updates to your home, shopping for a car, or in need of funds for other major expenses here at U.S. Bank, we can help you understand how a Home Equity Line Of Credit may work for you.
Using the equity you have in your home may be a quick and convenient way to access funds for your next major project or purchase. But there are a few things you should know before you begin.
Ready to take the next step? Learn more about HELOCs and apply here.