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Plus, enjoy a 6-month intro rate of 5.99% APR4 then, as low as 8.20% APR2 with autopay from a United checking account.
apply for helocHome equity is the difference between your home’s market value and the amount that you owe on your mortgage. You can borrow against your home’s equity to fund large projects or major expenses.
A home equity installment loan and a home equity line of credit (HELOC) are both great ways to borrow funds for home improvement or remodeling projects, or to help pay for college tuition, debt consolidation, medical expenses, and other large expenses. Here’s how they work.
With a home equity installment loan, you receive your funds in a single lump sum. This type of loan is ideal if you have a large, one-time expense, or if you want to consolidate debt and focus on paying it off. It offers fixed rates and a steady monthly repayment schedule for up to 15 years. Since the loan is secured by your home’s equity, the interest you pay may be tax deductible.
As low as
7.75%
APR1
rates vary by state, see today's rates.
A home equity line of credit lets you borrow funds when you need them, up to your available credit line. With this revolving line of credit, you can borrow, repay, and borrow again. Much like a credit card, the credit amount becomes available again as the outstanding balance is repaid. This can be useful if you’re planning a major project with multiple expenses or if you want ongoing access to funds for emergencies. HELOCs feature flexible repayment options.
As low as
8.20%
variable APR2
rates vary by state, see today's rates.
With United, there are no origination fees, closing costs, or annual fees. Both our Home Equity Installment Loan and our Home Equity Line of Credit are not limited to any specific use and are easy to apply for online. Best yet, by signing up for autopay with your Ultra Checking or Rewards Checking account, you’ll receive a discount on your rate5.
Get the breakdown of what makes our Home Equity Installment Loan and Home Equity Line of Credit different from one another.
Combined Loan to Value
Debt to Income
Applies to home equity loans closed within 24 months of the plan's opening date where United waived loan holders third party fees.
Discount applies to automatic payments from a United Checking Account
While the rate on HELOCs is variable, it is tied to the Wall Street Journal Prime Rate which is easy to track and the rate is capped. In the event of an increase in rate, the required amount for a minimum payment, 1.5% or $100 whichever is greater, will never change.
Home Equity Installment Loans by United are available on owner occupied dwellings only, primary and secondary homes. They are not eligible if the property is currently listed for sale or draws an income (as a rental or AirBnB). Our Home Equity Loans are available in every state except Hawaii, Alaska, and Texas.
A: In some situations, a home equity installment loan may meet the federal government’s definition of a “Higher Priced Mortgage Loan.” In such cases, if there is no first mortgage prior to your home equity installment loan, you will be required to establish and maintain an escrow account for payment of taxes and insurance for a minimum of 5 years. If the loan is deemed to be a High-Cost Mortgage loan, you will also be required by law to go through pre-counseling.
In instances where a HELOC application is identified as being a High-Cost Mortgage, the transaction cannot be continued as a HELOC. Instead it can be changed to a Home Equity Installment Loan or some other loan product, if viable.
A: Home equity loans and lines of credit approvals are valid for 60 days from the credit report date.
A: The amount of your loan or line of credit is determined based on the amount of equity in the house and whether the Combined Loan to Value (CLTV) is over or under 80%.
A: United offers the payment option of interest only. With a traditional HELOC, you begin paying back both principal and interest right away, month by month. With an interest-only HELOC, you pay only the monthly interest during the draw period. Once the draw period is completed, you begin to repay the principal. This can typically minimize the size of your monthly payments initially. However, the low payments on an interest-only HELOC could increase significantly once the draw period ends and the repayment for the principal begins.
These interest payments are calculated on the accumulated unpaid interest from the previous month cycle. For example: a February 25th payment would include the accumulated unpaid interest from January 1st-January 31st.
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Schedule an appointment to discuss your options, learn about United, or contact us with your questions to make the decision easier.
