Home Equity Line of Credit

There are several easy ways to access the funds in your line of credit.

• Transfer funds from your line of credit to another UW Credit Union account directly from our mobile app or online banking service.
• Visit a branch to get a cashier’s check or make a transfer.
• Request checks for your home equity line of credit.

Credit cards and HELOCs both act as revolving lines of credit, meaning you can borrow funds up to a set limit. As you pay back what you borrow, you can use those funds again, and you pay interest only on what you borrow. Credit cards are typically used for everyday spending (groceries, entertainment, etc.) while your HELOC is best used to cover big expenses (home improvements, college tuition, etc.).

Both options include benefits - credit cards often offer rewards, cash back, purchase protection and more. HELOCs usually have a lower interest rate than credit cards³, and interest may be tax deductible if it's used toward home improvements (consult your tax advisor).

One financial strategy that may give you the best of both worlds is to pay for big purchases with your credit card, so you can take advantage of your card's rewards program. Then, promptly pay off your credit card balance with your HELOC to enjoy the low rate and generous repayment terms. 

Request a call with a lending expert to learn more.

While it may not necessarily be easier to get your HELOC through a credit union, being a member when you apply does have a few advantages. For instance, UW Credit Union members who need a HELOC enjoy:

• Easy and free pre-approvals that don’t impact credit scores like a hard pull does
• Convenience of managing withdrawal and repayment through Web Branch
• Access to free tools and resources as well as our friendly lending experts

The introductory rate on the home equity line of credit begins as soon as you have access to the line of credit. Typically, this is three business days after your loan closing. The duration of your introductory rate will depend on the specific details of your HELOC offer. After that, any balances will be at the standard rate which is indexed to The Wall Street Journal Prime Rate.

Your home equity line of credit includes a five-year draw period which allows you access to the funds in your line of credit. At the end of the draw period, qualified borrowers may choose to renew the line of credit for another five-year draw period. Draw period renewal is free with a Rewards or Encore checking account or a $100 fee applies.  Qualified borrowers may choose to renew the draw period up to two times.

The APR is subject to change monthly but cannot exceed 18%. APRs on the home equity line of credit also have a floor rate, depending on the product type.