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Home Equity Line of Credit (HELOC)

Discover the hidden value in your home with a low-rate HELOC

Tapping into the equity of your home with a HELOC can give you access to flexible financing at affordable rates. Whether you are looking to pay off high-interest debt, make home improvements, or pay for college, a HELOC is there when you need it. HELOCs use the equity (the fair market value of your home minus the balance of any home loans) to secure your financing, allowing you to borrow money at lower interest rates than with a credit card or unsecured personal loan. As with other types of home loans, applying for a HELOC will involve checking your credit score and credit history, as well as verifying your income and assessing your home’s market value. Discuss your HELOC needs with a member of our lending team. Contact Vision Bank at 888-332-5132, apply online or visit one of our convenient locations in Oklahoma to learn more.


Common Questions Asked About HELOC

 
What is a Home Equity Line of Credit?
A Home Equity Line of Credit is a revolving line of credit, similar to a credit card. You can use the funds to help pay for unexpected emergencies—anything from heating or plumbing in your house—to planned expenses, such as school tuition or a remodeling project. A Home Equity Line of Credit lets you take advantage of the equity you have in your home, whether it’s a primary or secondary residence.
How does a Home Equity Line of Credit work?
With a Home Equity Line of Credit, you are approved for a borrowing limit up to a certain percentage of the equity in your home. You can choose to use some or all of your line’s available credit. HELOCs allow you to pay for your expenses from contractor payments to tuition bills. Vision Bank offers a competitive interest rate and friendly staff and service to help you through the process. Visit one of our locations in southeastern Oklahoma.

How is a HELOC different from a home equity loan? 
 
A HELOC (Home Equity Line of Credit) is a revolving credit line secured by your home's equity, allowing you to borrow as needed. A home equity loan, on the other hand, provides a lump sum with fixed payments over a set period.
 
What are the interest rates on a HELOC? 
HELOCs typically have variable interest rates, meaning they can fluctuate over time based on market conditions. Some lenders may offer fixed-rate options for certain periods of time.
 
How much can I borrow with a HELOC? 
The amount you can borrow depends on your home's equity, lender policies, credit score, and income. Generally, lenders allow you to borrow up to a certain percentage of your home's value minus any mortgage balance.
 
What is a Draw Period for a HELOC?

There are two phases of a HELOC: the draw period and the repayment period. During the draw period you have access to all the available funds in your line of credit, making monthly, interest-only payments. After this time, you will no longer be able to access any remaining funds, and your HELOC will enter the repayment phase, where you pay back both the principal and interest in monthly installments. 

Can I pay off my HELOC early? 

Yes, most HELOCs allow early repayment without penalties. However, some lenders may charge fees for early closure, so check your loan agreement.

Will applying for a HELOC affect my credit score?  Yes, applying for a HELOC results in a hard inquiry on your credit report, which may slightly lower your credit score. Your score could also be affected by how you use and repay the HELOC.

Are there any fees associated with a HELOC? 
 Yes, possible fees include application fees, annual fees, appraisal fees, closing costs, and early termination fees. These vary by lender.
 
What happens when the repayment period begins? 
After the draw period (lender defined), you enter the repayment phase, where you can no longer borrow and must start repaying the principal plus interest. Payments may increase significantly.
 
Can I refinance my HELOC into a traditional home loan? 
Yes, if you qualify, you can refinance a HELOC into a mortgage or another loan to secure a lower fixed interest rate or adjust repayment terms.
 
Why Choose a Local HELOC Lender?
As an independently-owned community bank serving Ada, Davis, Durant, Meeker, Norman, Prague, Shawnee, Sulphur and the surrounding areas, Vision Bank is invested in the success of our community. And because all of our lending decisions are made locally, we offer more flexibility and personalized service. Contact us or visit your local bank today to discuss your HELOC needs with our friendly and knowledgeable lending team.

How do I Qualify for a HELOC?
In order to qualify for a home equity line of credit, you must have acceptable equity in your home. This means that the amount you owe on your home must be less than the value of your home. In addition, a lender will often review your credit score, credit history, employment history, and debt to income ratio. Consult with a lender at Vision Bank today to see if you qualify.