A home equity line of credit (HELOC) is a revolving line of credit secured by your home. During the 10-year draw period you can borrow, repay, and borrow again up to your approved credit limit, and you pay interest only on the amount you use. After the draw period ends, a 10-year repayment period begins, when you repay the remaining balance.

A HELOC is a variable-rate line of credit you can draw from as needed, which suits ongoing or unpredictable expenses. A home equity loan gives you a single lump sum with a fixed rate and fixed monthly payments for 5, 10, 15, or 20 years, which suits one-time expenses with a known cost. Both are secured by your home.

You may be able to borrow up to 100% combined loan-to-value, meaning your HELOC plus your existing mortgage balance can total up to your home's value. The minimum line is $10,000. Your credit limit depends on your home's value, your mortgage balance, and credit approval.

HELOC rates are variable. Your rate is based on the highest Prime Rate published in the Wall Street Journal plus a margin, and it can change as Prime changes, subject to the floor and maximum rate shown in the rate details on this page.

Members commonly use a HELOC for home improvements and renovations, debt consolidation, emergency expenses, and major purchases. Because your home secures the line, it is worth comparing options before using home equity to pay off unsecured debt.

The Credit Union pays its related closing costs; you are responsible for recording fees. If you pay off and close the line within the first three years, you will reimburse the Credit Union for the closing costs it paid on your behalf. There is no annual or maintenance fee. Homeowners insurance is required.

You must be a member of Pioneer Valley Federal Credit Union, which serves people who live, work, worship, or attend school in Massachusetts, Connecticut, Rhode Island, New Hampshire, Vermont, or New York. HELOCs are subject to credit approval, property eligibility, and available equity, and homeowners insurance is required.

You can apply for a HELOC online (opens in a new window), call us at 413-730-4152, or email MyHome@PVCU.org. Use our HELOC calculator to estimate what you may be able to borrow before you apply.