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Dream bigger

Thanks to your biggest investment

If you’ve ever wanted to update your kitchen, finance an education, or consolidate debt, but weren’t sure how to pay for it, look no further than your own home.

A Home Equity Line of Credit, also known as a HELOC, allows you to borrow money against the equity you’ve built in your home over time. The money can be used at your discretion and is typically a lower interest rate than credit cards.

How it works

calculate your available funds
1. calculate your available funds

It all starts with home equity

If the amount you owe on your home is less than the value of your home, then congratulations – you’ve got home equity. Use our handy calculator or talk to one of our loan advisors to see how much you‘re eligible to borrow. You can often borrow up to 80% of your combined loan-to-value ratio.

prepare and apply
2. prepare and apply

Hit the ground running

AmeriSave Mortgage looks at things like credit score, employment history, finances and more to determine whether you’re eligible for a HELOC. Be prepared by having your social security number, W-2s and current home documents ready for when you fill out an application.

Learn your home value
3. Learn your home value

Borrowing depends on worth

Before we can issue an official amount, AmeriSave Mortgage will need to assess the current value of your home. That will allow us to determine a formal amount of how much home equity you have and ultimately, how much you can borrow. Our evaluation process will be able to determine your home value in minutes. Valuation fees apply.

close on your heloc
4. close on your heloc

Sign on the dotted line

AmeriSave Mortgage will provide final approval, the terms of your agreement and schedule a closing date. You’ll need to review and sign the documents in person. At closing, you’ll have a full draw of the available funds in your line of credit.

The Draw period
5. The Draw period

Your money, your call

During the 10-year draw period, you'll be able to pay down and redraw as needed. Funds can be received via check or online transfer through an easy-to-use customer portal. Your monthly payments will be interest only and will be based only on the amount that you have borrowed (not on any undrawn balance).

the repayment period
6. the repayment period

Pay back what you borrowed

Once you’re in the repayment period (years 11-20), your monthly payment will include principal and interest. Remember, your HELOC is a variable rate so try to pay more when you can to reduce the debt faster!

freshly renovated house

A one-room home
addition costs
approximately $48,0002

See if your home Equity can cover it
working on home renovation project
graduation hat toss

One year of room and
board at a private
college costs $13,6203

See if your home Equity can cover it
man and woman celebrating graduation
doctor seeing patient

25% of people with
medical debt owe more
than $5,0005

See if your home Equity can cover it
woman looking at bills
hand holding credit cards

The average American
family has $6,270 in
credit card debt6

See if your home Equity can cover it

man sitting at table

See how much equity you’ve got at home

Our Home Equity Line of Credit Calculator can show how much you could borrow. *Restrictions Apply

Frequently Asked Questions

A HELOC lets you use your home equity to borrow money for things you need. It provides a line of credit you can take out over certain amount of time (borrowing period) that you’ll need to repay over the repayment period. It often has a lower interest rate than other loans like credit cards or personal loans. Plus, the interest may be tax deductible if used for a home project (consult with your tax advisor).

Both allow you to borrow money you need to consolidate debt or pay for house projects. But there’s a big difference between them. A cash-out refinance replaces your current mortgage with a new one. It will have new rates, new terms, and likely be bigger than the previous mortgage (depending on how much cash you need to borrow). A home equity line of credit is a second mortgage that lets you borrow money against your home equity, without impacting your current mortgage.

The short answer is: No. If you take out a HELOC with AmeriSave, you will receive the full loan amount immediately, but can either pay it back and draw down over time, or use those funds right away. The credit is available to you over the borrowing or draw period. A Home Equity Loan requires that you take out a lump sum at one time to be paid back with the agreed upon terms and conditions.

Not necessarily! A HELOC typically has a lower interest rate than credit cards.

It’s your cash, it’s up to you! One benefit of borrowing money with a lower interest rate is to help consolidate and pay off higher rate debt like credit cards, or old bills. You can also use the money to help finish the home project you’ve always wanted to do, or finally take that vacation you’ve dreamed up. Keep in mind that there are tax implications with a HELOC. If you use the funds to make home improvements, then the interest paid on the loan is typically tax deductible. Speak to your tax advisor for more details on IRS rules related to how you’ll use your funds.

There are many factors that a lender considers including the total amount of the loan, the value of your home, your credit score and more. Lenders will typically look at a “loan-to-value ratio” (or LTV) to help determine the amount you can borrow. This is a percentage that compares the amount of your current mortgage with the appraised value of the property. If you want to see how much cash your home equity could provide, try our helpful calculator.

No. A HELOC is a separate loan. It must be paid back on the terms and conditions agreed upon, independent of your mortgage.

Just like in a rate and term, cash-out or most mortgages, there are closing costs associated with a Home Equity Line of Credit. Closing costs will vary, so be sure to review your loan disclosures prior to closing.

Don’t see what you’re looking for? Check out our Knowledge Center for more resources.

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