Home Equity Lines of Credit

  • Receive an established credit limit with a variable interest rate that you can access with checks and sometimes a credit card.
  • A set period of time, known as the draw period, during which you can draw on your line of credit.
  • May include the option to renew your credit line when the draw period expires.
  • Typically come with a variable interest rate, which means your payment may change.
  • Some lenders may offer an option to fix the rate on all or part of your line of credit. This can make it easier to manage separate purchases and gives you the stability of a fixed interest rate.

A home equity line of credit may be the right choice if:

• You want to have money available for different reasons over a long period of time.
• You want to draw on part of it for a vacation this year and you want some available to remodel your kitchen or buy a car next year.