Home Equity Lines of Credit
You’ve worked hard to build equity in your home. Put it to work for you with a Home Equity Line of Credit. Use it for projects around your home, to pay off higher interest debt, or to make a large purchase.
Right now, you can open a Home Equity Line of Credit with:
- 1.99% fixed intro APR for 12 months, then as low as 5.00% variable APR*
- No annual fee during the 12 month intro period*
- No underwriting fee
- Low closing costs
Say yes to that updated kitchen, finished basement, new car, or debt consolidation. Contact our team today to apply for a Home Equity Line of Credit.
Learn About Home Equity Lines of Credit
What is a Home Equity Line of Credit?
A Home Equity Line of Credit, often called HELOC, is a revolving line of credit with interest only payments. It uses a portion of the equity in your home to borrow money at low interest rates for any purpose. It allows you to access money when needed without needing to reapply for a new loan.
Is a Home Equity Line of Credit right for me?
Homeowners with equity in their home, especially those with a low fixed rate on their first mortgage can benefit from a HELOC. A HELOC can provide funds as you need them, both now and in the future. You can borrow, repay, and re-borrow up to your credit limit as often as you wish.
How much can I borrow?
You can borrow up to 80-90% of your home’s value minus the remaining balance of your mortgage for a HELOC. Talk to one of our lenders to see how much you qualify to borrow.
How can a HELOC be used?
You can use your line of credit for anything. Common uses of a HELOC include home improvements, consolidation loans, vacations, vehicle or boat purchases, weddings, medical expenses, education, or starting a business. Access HELOC funds easily with our Online and Mobile Banking or by writing a check.
Will the interest rate change?
During the 12 month introductory period, the interest rate is fixed and will not change. After the 12 month introductory period ends, the interest rate will vary with the Prime Rate as published in the Wall Street Journal, plus a margin of up to 1%.*
What is the difference between a HELOC and a Home Equity Loan?
Home Equity Loans provide you with one lump sum, which is typically repaid with equal monthly payments over the term of the loan.
A HELOC is more flexible, because it is a form of revolving credit, similar to a credit card. You are given a credit limit and can use as much or as little of that credit limit as you want. You only pay interest on the balance you have borrowed. A HELOC allows you to borrow, repay, and re-borrow up to your credit limit as often as you wish.
What will my monthly payments be?
Your monthly payments will be only the interest accrued on the amount you have used of your credit line.
How do I make payments toward my HELOC balance?
You can make principal payments on the balance of your credit line at any time over the term of the HELOC. A balloon payment of any remaining balance will be due at the end of the HELOC term (15 years from the opened date).*
How much does it cost to open a HELOC?
We do not charge any underwriting fees, but there may be other fees involved in opening a HELOC.* Closing costs could include fees for title, recording, appraisal or evaluation, or more. In most cases, costs range from $163 to $414 unless an appraisal is required. An appraisal typically costs $400 if it is required. Talk to our lenders to learn what closing costs may apply for your situation.
Does a HELOC have any fees?
An annual fee of $50 does apply to HELOC accounts. This annual fee is waived during the introductory period of the first 12 months, but applies to all subsequent years (years 2-14).* There are no transaction fees.
How do I apply for a HELOC?
Talk to one of our mortgage lenders to get started! Call our office at 608.643.3393 or come to our office at 555 Park Avenue, Prairie du Sac to meet with them:
Still have questions? Read more about what you should know about Home Equity Lines of Credit
*APR=Annual Percentage Rate. Introductory rate is 1.99% fixed APR for the first 12 months. After the introductory period ends, the rate will vary with the Prime Rate as published in the Wall Street Journal plus a margin of up to 1% for the remaining 14-year term. Your actual rate will be based upon credit worthiness and loan-to-value (LTV). As of 06/15/18, the variable rate would be 5.00% APR for customers with a 0% margin, or 6.00% APR for customers with a 1% margin. The APR will not vary above a maximum 18%. Prime rate as of 06/15/18 is 5.00%. Offer valid for Home Equity Lines of Credit (HELOC) opened from 5/1/18 to 9/30/18. Subject to credit approval. Offer available for new HELOC only. Existing HELOC are eligible for promotional rate if refinanced and increased by a minimum of $5,000. Maximum LTV is 90% if first mortgage is with Bank of Prairie du Sac, or 80% for all others. Property insurance is required. Closing costs range from $163 to $414, unless an appraisal is required. If required, the charge for an appraisal is typically $400. Term of HELOC is 15 years with a balloon payment of remaining loan balance due at maturity. No transaction fees apply. A $50 annual account fee will be billed after the introductory period for the remaining term (years 2-14). Not valid with any other offers. Bank of Prairie du Sac NMLS#673057
Home Equity Loans
Borrow a specific amount for whatever your needs - like a home remodel, debt consolidation, or a new automobile.
- May qualify for tax deductible interest; check with your tax advisor
- Borrow against the equity of your home
- Easy Budgeting - Fixed monthly payments of principal and interest
Learn more about Home Equity Loans and Lines of Credit in our online Mortgage Center.