heloc greenville sc Home Equity Loan and Line of Credit Guide

If you're a homeowner in Greenville, SC, you may have heard of a Home Equity Loan or Line of Credit, but aren't quite sure what they are or how they work.

A Home Equity Loan is a lump sum of money borrowed against the equity in your home, which can be used for just about anything, from home improvements to paying off high-interest debt.

To be eligible for a Home Equity Loan, you typically need to have at least 20% equity in your home, which means your home's value must be at least 20% higher than the amount you owe on your mortgage.

In Greenville, SC, the average home value is around $340,000, so you'd need to have a mortgage balance of at least $272,000 to qualify for a Home Equity Loan.

Our Home Equity Line of Credit (HELOC) is a unique offering that requires certain conditions be met.

A minimum Line of Credit (LOC) amount of $5,000 is required for the first advance, with a subsequent minimum of $100 thereafter.

Borrowers are responsible for the cost of appraisal and/or title insurance if required, with title insurance mandatory for loan amounts of $50,000 or greater.

Flood and/or hazard insurance may be necessary, and closing fees vary depending on the loan amount.

A minimum fixed rate loan amount of $20,000 is also required.

Restrictions do apply to lender credit, and a home equity loan or LOC is secured by a first or second mortgage lien on your primary one-to-four family residential real estate.

Rates and terms are subject to change, so it's essential to review the details with your Credit Union.

Having a Home Equity Line of Credit (HELOC) can be a great way to tap into your home's equity, and in Greenville, SC, there are several options to consider.

You can choose from different repayment options, including an interest-only option if you're credit qualified, which can help keep your monthly payments lower.

With a HELOC, you can create up to 3 loans within your line, giving you more flexibility to manage your finances.

One of the best things about a HELOC is that as you make payments, your available credit is instantly replenished, allowing you to borrow more if needed.

You can borrow from your home equity as needed, up to a preset limit, with a low variable interest rate.

The introductory rate for a HELOC can be as low as 6.25% APR for the first 12 months, and as low as 7.00% APR variable thereafter.

There are no annual fees, and you may be able to avoid or minimize closing costs and application fees.

A HELOC might be a good fit for you if you're looking to borrow money at a low rate and repay the amount quickly.

Here are some key benefits and options to consider:

In Greenville, SC, HELOC rates vary depending on the lender and your creditworthiness.

A HELOC typically has a variable interest rate that can change over time. Some lenders may offer a fixed rate option for a promotional period, but this can vary.

Lenders in Greenville, SC, may charge origination fees, closing costs, and annual fees for a HELOC. These fees can range from 0.5% to 2% of the loan amount.

Greenville SC home equity loan rates vary depending on the lender and the borrower's creditworthiness. Typically, rates range from 4.5% to 7.5% APR.

Home equity loan rates in Greenville SC are influenced by the national economy, with rates tending to rise during times of economic growth.

With a fixed rate and term, you can set up a fixed monthly payment for each advance, selecting from a variety of repayment options. This applies to each advance you make, with a minimum amount of $5,000.

You can have up to three advances outstanding at any one time, giving you flexibility in managing your finances.

There are two main fees to be aware of when considering a HELOC in Greenville, SC: a $25 balance conversion fee and a $35 non-use fee.

The $25 fee is charged for each balance conversion to a term loan, which means you'll pay this fee each time you convert your line of credit into a loan with a fixed interest rate.

The $35 fee, on the other hand, is only charged during any 12-month period with no balance or activity on the line of credit.

To break it down further, here are the fees in a simple list:

Keep in mind that interest rates may be tax-deductible, so it's worth consulting your tax advisor to see if you can take advantage of this benefit.

When deciding between a Home Equity Loan and a Home Equity Line of Credit, it's essential to consider the features of each option. Home Equity Loans typically have fixed interest rates, while Home Equity Lines of Credit have adjustable interest rates.

If you need a lump sum, a Home Equity Loan might be the better choice. However, if you'd rather draw money as needed, a Home Equity Line of Credit is the way to go.

Here's a comparison of the two options:

With a Home Equity Loan, you'll pay interest only on the money used, which can help reduce your overall costs.