Home Equity Line of Credit

The equity you've built can help you make improvements, add new space, or even pay for new adventures.

Family sitting on steps. HELOC 6.00% APR 6-Month Intro Rate. 8.25% APY Adjusts to Qualified Rate.

What is a Home Equity Line of Credit?

A Home Equity Line of Credit is a form of revolving credit that allows you to take advantage of the equity you've built up in your home. When you use your home's equity, you're borrowing funds directly from your own equity, then repaying it — usually at a relatively low-interest rate.

Because it acts as a line of credit rather than as a standard loan, you'll have access to funding in any amount (up to the total amount of equity you have) whenever you need it. And you only pay interest on the portion of the home equity line of credit you use.

Apply now

How does a home equity line of credit work?

With a HELOC, you can access a certain amount of money, up to a predetermined credit limit, over a set period of time, usually 10 years. You can use this money for anything you want, such as home renovations, debt consolidation, or other major expenses.  HELOCs can potentially lower your monthly bills and boost your credit score by paying off high-interest credit cards, medical bills, and other debt. 

Unlike a traditional loan, you don't receive the entire amount upfront. Instead, you can borrow and repay money as needed within the set time frame. You only pay interest on the amount you borrow, not the entire credit limit.

HELOCs typically have variable interest rates, which means that the interest rate can fluctuate over time based on market conditions. The interest rate on a HELOC is usually lower than other types of loans, such as credit cards or personal loans, but it can still be higher than your mortgage interest rate.

 

home plan drawings

What are the benefits of a home equity line of credit?

icon arrows and dollar signs

Flexibility

With HELOCs you can draw on the line of credit at any time during the draw period, and you only pay interest on the amount you borrow.  This means that you can use the funds for a variety of purposes. 
CheckMortgageRates_icon_81x81

Lower rates

HELOCs typically have lower rates than other types of loans because the loan is secured by your home's equity making it a cost-effective way to borrow and pay off other high-interest debt. 

Open-an-Account-Icon

Ease of application

The application process is simple and straightforward.  Before you begin your application, it may be helpful to take a minute and review our home equity document checklist.

 

 

How long does it take to get a home equity line of credit?

Step 1. Complete a basic application.

Apply online in minutes, call 888-873-2640, or visit a Horizon Bank branch.

Step 2. Work with an Advisor.

An experienced Horizon Loan Advisor is here to guide you through the process. 

Step 3. Close on your HELOC.

Once your loan is approved your Loan Advisor will schedule your closing.

 

 

Ready to apply for a home equity line of credit?

  • icon with checkmark
    Apply online within minutes.
  • icon that looks like a location finder
    Visit a branch.
  • phone icon
    Speak to an advisor.

APR Disclosure

*Introductory APR (Annual Percentage Rate) will be fixed at 6.00% APR for the first 6 months for those lines with up to 89.9% loan to value (LTV). Thereafter, the rate may vary. The rate is based on credit score, LTV and Prime Rate + 0.25%. The Prime Rate equals the highest Wall Street Journal (WSJ) prime rate as published in the WSJ effective the date the 6-month introductory period expires. WSJ prime rate effective 12/19/2024 is 7.50% APR. Example: credit score of 730+ and LTV of 70% or less will have a rate of 7.75% as of date of publication following the introductory period. Maximum rate is 25%. APR will not fall below a floor of 3.25%. Annual fee is $50, waived for first year. Reimbursement fee up to $399 applies if line is closed within the first 36 months. Subject to credit approval. Other terms and conditions may apply and are subject to change without notice. Introductory rate not available on home equity lines of credit opened within the last 12 months unless line amount is increased and a 25% advance is taken at funding. The 25% advance does not include the payoff disbursement. Offer expires March 31, 2025.

Get answers to your frequently asked questions about home equity lines of credit (HELOC).

Smart Ways to Use your Home Equity

Family in kitchen on floor

You’ve owned your home for several years, and your payments have added up. Maybe your home’s value has increased while you’ve lived in it as well. Or you’ve made some improvements that have helped make it more sellable. Great job! You’ve built up equity.

What exactly is equity?

Equity is the total amount of money your home would be worth if you were to sell it today, minus the amount you still owe on it. Once you’ve got a decent amount of equity, you’ve got more financial choices at your disposal.

What could you do with it? We recommend you take a sensible approach, with choices like these:

  1. Add even more value to your home!

    You can set up a Home Equity Line of Credit (HELOC), which is a designated account allowing you to take funds out of your equity for large purchases. It works just like a credit card, which means it gives you easy access to funds as you need them — but you’ll have to pay it back, with interest.

    When you use your HELOC for things like home remodeling or additions, this can be a simple way to add even more value to your home. It’s a good way to take on large expenses when you can’t otherwise save up the cash you need.

    Just don’t use your HELOC card to buy tacos on your next snack run — you can technically do it, but it’s not a wise choice!

  2. Pay for educational expenses
    Another way to use a HELOC account is to pay off big college loans. This should free up cash for your other monthly expenses, and may also decrease the amount of interest you’re paying. If so, that means you’d pay less for your college loan over time.

    Talk to an adviser at Horizon Bank to see if this is a good choice for your particular situation.

  3. Use it to refinance at a lower APR
    Once you have enough equity — usually about 20% of the total loan you took out — you can consider refinancing your home. Most people do this to:

    a) access needed cash (instead of buying a new home to do this)
    b) consolidate other debts into their mortgage so they’ll have a single payment, or
    c) simply get a lower interest rate, if it’s available

    Things to keep in mind: Just like buying a new home, you’ll have closing costs, assessor’s fees, and potentially other lending-related fees to consider. Horizon Bank advisers are happy to provide you with Sensible Advice about whether you’ll come out ahead with this choice.

  4. Save it and let it grow even more!
    The easiest and safest way to go is always to simply sit back and enjoy watching your equity grow. The longer you keep your home and stay consistent with making your payments on time, every time, the more cash you’ll have access to when you really need it.

    Want to learn more about HELOCs and other ideas for taking advantage of your home’s equity? Reach out to us, or stop by your local Horizon Bank branch for more info.

The web site you have selected is an external site not operated by Horizon Bank. This link is provided for convenience and informational purposes only and Horizon does not endorse and is not responsible for the content links, privacy policy or security policy of this website or app you are about to visit.  Horizon Bank is not responsible for (and does not provide) any products, services or content for this third-party site or app, except for products and services that explicitly carry the Horizon Bank name. Click Proceed to continue or Cancel to go back.