What Is a Home Equity Line of Credit (HELOC)

Please note we are not currently accepting equity loan applications in your area.

A home equity line of credit (HELOC) is a loan extended to a homeowner that uses the borrower's home equity as collateral. It is a revolving line of credit that provides convenient access to financing. It may be the perfect solution for:

• Home repairs or improvements
• Debt reduction and consolidation
• Emergency funds

A HELOC may have a lower interest rate than some other common types of loans.

How It Works

With a HELOC, you are borrowing against the available equity in your home, and the house is used as collateral for the credit line. As you repay your outstanding balance, the amount of available credit is replenished. You can borrow as little or as much as you need throughout, up to the credit limit established.

Qualifying

To qualify for a HELOC, you need to have available equity in your home, meaning the amount you owe on your home must be less than the value of your home. Good credit and employment history are beneficial when qualifying for a loan.

Interest Rate and Payments

When you have a variable interest rate on your HELOC, the rate can change from month to month. Payments may change based on your balance and interest rate fluctuations, or if you make additional principal payments.

Rate Lock Option

MidFirst offers an option that allows you to convert a portion of the outstanding variable-rate balance on your HELOC to a fixed rate. Payments you make on a balance at a fixed interest rate are predictable and stable and can protect you from rising interest rates. Ask your personal banker for more details.