Home Equity Line of Credit Q&A
Contact our Real Estate Loan Department for any questions regarding our Home Equity Lines of Credit. Just call 303-333-2910 or toll free at 1-877-293-6328.
How much equity do I have in my house?
If you own your home, even if you recently purchased it or refinanced it, you may owe less than the market value of your home. The difference between what you owe and what your home is worth is called equity.
How does a Home Equity Line of Credit (HELOC) work?
A Denver Community Credit Union HELOC allows you to borrow up to 85% of your home’s value less the balance of all liens like a first mortgages or current second mortgage. Different products will offer different features. You could have interest-only payments up to ten years depending on the product you choose.
How is my rate determined?
Our rates are tied to Prime, a rate that is determined on the Fed Funds Rate set by the Federal Reserve. The Wall Street Journal publishes the consensus prime rate based off of surveys of large banks. Currently, Denver Community Credit Union offers rates as low as 1% below Prime. Your rate is based on available equity in your home, credit score, loan-to-value (LTV), loan term, and other liens. *Floor rates may apply.
*As of 8/31/2017, our floor rate is 5.00%.
Do I have to use a HELOC for home repairs or remodeling?
No. You can use your line of credit for any purpose, including but not limited to home remodeling. Many people use their line of credit to pay for college tuition, vacations, weddings, automobiles, RVs etc.
Is the interest on my HELOC tax deductible?
Most of the time, the interest on your home equity line of credit is tax deductible. We cannot guarantee whether your interest is tax deductible or not. Please check with a tax advisor to be sure.
Do I need to use the entire amount of my HELOC at once?
No. The HELOC is just a line of credit. You choose how much or little to use, when to use it, and what to use it for. If your HELOC balance is $0, you will not be penalized or charged any fees. Additionally, our HELOCs feature a ten year draw period which allows you to access your line of credit for up to ten years. It's there when you need it and there is no penalty if you do not withdraw funds from your HELOC. HELOCs are often times a great back up for emergency funds.
How can I find out more about Denver Community’s HELOC?
For more information, to check rates, or to apply call a Mortgage Loan Representative at 303-573-1170. You can also apply online here.