What is a Home Equity Line of Credit (HELOC)?

As a homeowner, you may have heard about the option to borrow against your home's equity through a Home Equity Line of Credit (HELOC). A HELOC is a revolving credit line that allows you to access funds from your home’s equity as needed. It can be used to finance home renovations, consolidate debt, pay off emergency expenses, make major purchases, and more.

Unlike a traditional loan or mortgage, a HELOC allows the borrower to set up an account where they can draw funds against their available credit limit. You are only charged interest on the amount of money you withdraw and use, rather than the full amount of your approved credit limit. This makes it an attractive option for homeowners who need access to money but don't want to be tied down to large payments over an extended period of time.

The process for setting up a HELOC generally includes submitting an application and providing proof of income and assets, as well as documentation such as tax returns and bank statements. Once approved, you will receive a set credit limit which will depend on various factors, like how much equity you have built in your home and how much you are able to finance through the HELOC. Your lender will also set an initial fixed-rate draw period followed by an adjustable-rate repayment period during which your monthly payments will vary depending on market conditions.

Ultimately, a HELOC can be a great way to access funds when needed without being locked into long-term commitments or high interest rates associated with other forms of borrowing.

If you’re looking to get started with a HELOC, consider applying online with Central Pacific Bank. CPB is committed to offering competitive rates and provides an easy online application process. A HELOC from CPB includes many advantages over other lenders, including no down payment, no annual fee, quick loan approvals, and up to $500 of early closing fees paid off if you move a loan to CPB.

Visit cpb.bank/HELOC and apply online today!

Learn more about CPB HELOCs

Already have a CPB HELOC? Simply login to online banking to start using your line of credit.

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