How does a home equity line of credit work?
After you are approved for and close your home equity line of credit, we’ll send you checks and a Visa® card. Use them as you would use a regular check or credit card to pay for your expenses. You’ll start making monthly interest payments on your home equity line of credit once you start using it.
You can draw funds from your HELOC for 10 years. If you have a balance at the end of the draw period, your HELOC becomes a 20-year loan with a principal and interest payment.
How is my payment determined?
For the first 10 years, the minimum payment is the amount of interest due. After that, your payment is based on 1.5% of the outstanding balance of your line of credit.
After I am approved for my HELOC, how quickly can I get my Visa?
You should get your Visa in the mail about 7-10 business days after you’ve closed your home equity line of credit.
Is it possible to pay off my home equity line of credit early?
Yes, you can pay off your HELOC early with no penalties. However, if you close your line within the first 24 months, you must reimburse us for your closing costs, up to $300.
Do I have to pay closing costs?
A maximum of $750 in closing costs are waived at closing.
How much HELOC can I apply for?
We offer home equity lines of credit from $10,000 to $750,000, based on the available equity in your home.
How is my equity determined?
Your equity is based on your current home’s value less the balance of any existing mortgage. The maximum loan to value (LTV) is 80%.
Should I get a HELOC or home equity loan?
Each home equity option comes with its own benefits, so the answer depends on what works better for you.
With a home equity loan, you get the entire loan amount at once. That works well if you know how much you need to spend. You’ll also pay a fixed interest rate with a home equity loan, which means you’ll know what your monthly payment will be.
With a home equity line of credit, you can use your funds as you need them. This is helpful if you don’t know exactly how much you’ll need. Because the amount you use may vary over the course of the HELOC, your monthly payment may change.
Don’t forget that Nationwide can provide you with the insurance you need to protect your home. Request a home insurance quote from Nationwide Insurance today.