A home equity line of credit (HELOC), sometimes referred to as a second mortgage, is an equity loan that allows a borrower access to equity in their home. A HELOC is a revolving line of credit that can be used as much or as little as needed; borrow money, pay it back and borrow again without any renewals or additional paperwork during the draw period.
A HELOC is similar to a credit card account because we issue you a credit limit based on the equity in your home and you can use this credit line for whatever you want, whenever you need it.
With a Bank of Utah HELOC, there is no annual maintenance fees—meaning that you only pay on money that you borrow.
A home equity line of credit provides interest rates that are typically lower than credit cards!
Do I need to apply for a home equity line of credit in person or can I apply from home or my phone?
We have both options! You can apply at home or on the go using our convenient online application: Apply for a HELOC. Of course, you can always come into any Bank of Utah branch location to apply for a home equity loan. Find a Bank of Utah Location
How much money can I borrow?
Up to 90% CLTV of the value of your home.
How is CLTV determined?
A CLTV is calculated by taking the balance of a first mortgage plus the proposed limit of the HELOC divided by the appraised value of the home.
Is an appraisal required for a HELOC?
Yes, most loans require a limited appraisal to determine the value of the home, which we request at no cost to you for loan amounts under $250,000.
Are there really no closing costs with a HELOC?
Yes! As long as the amount of the line of credit is less than $250,000 and you keep the line open for longer than 3 years, there are no closing costs or prepayment penalties.
My credit score is low; can I still qualify for a HELOC?
Each scenario is unique. Contact a Loan Officer to discuss your specific situation.