Home Equity Lines of Credit (HELOCs) can be very useful. Actually, a line of credit secured against the equity in your home can help you complete home renovations, take a dream vacation, pay for upcoming tuition, and whatever else you need it for. There is virtually no need big or small that can’t be paid for with a home equity line of credit.
Of course we can help you establish your home equity Line of credit. However, if you currently have a HELOC, here are some things to keep in mind:
The “Draw” Period
The term “draw” period, means you are able to withdraw funds when you need them, at any time, provided you are making your payments regularly. At Sandia Area, your draw period is five years, followed by a 10 year repayment period.
When your draw period ends, so does your ability to withdraw funds. The end of your draw period also triggers the start of the repayment period. Your monthly payments will now include a repayment amount of the principal, as well as interest on the balance. Still want access to your funds? Contact Sandia Area and we will help you through the options.
Here are some steps you can take as you approach the end of your HELOC’s term:
- Ensure you know when your draw period ends
- Review the repayment details and determine if you would prefer to begin repaying the HELOC, or if you feel it is more convenient to continue to have access to those funds.
- Contact Sandia Area to discuss your HELOC and get further advice on repayment or refinancing.
Did you know?
If you have a HELOC with another lender, Sandia Area can refinance it for you. We can help you choose the best option for refinancing your HELOC to meet your financial needs. And, if you don’t already have a HELOC but are exploring a way to pay for those much needed home repairs, college tuition, or whatever else you can dream of don’t forget to start with your credit union. Contact us today at 505-292-6343 ext. 5, stop by one of our convenient office locations, or apply online.
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