My Utah is little moments in the backyard
and using my home to tackle big plans.
Bank of Utah's Home Equity Line of Credit (HELOC) allows you
to tap into your home's available equity and get funds for
home improvements, education costs, vacations, debt consolidation
A HELOC is a flexible financing option that allows you to borrow money from the available equity in your home. The equity you have in your home determines your combined loan-to-value ratio (CLTV), which is then used to determine your line of credit.
The CLTV ratio is calculated by taking the balance of your primary mortgage, adding the credit amount you want to establish through the HELOC, then dividing that number by the appraised value of the home.
At Bank of Utah, you can generally borrow up to 80% of your CLTV.
With a HELOC, you can borrow as needed, up to your approved credit line, much like a credit card but usually with a lower interest rate. You get a 10-year draw period to access your available funds. Throughout that 10-year timeframe, you can pay down your balance and the credit becomes available for use again.
When the draw period ends, the HELOC transitions into a 10-year repayment period.
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. Of course, you can always come into any Bank of Utah branch to apply for a home equity line of credit.
How Much Money Can I Borrow?
You can borrow up to 80% of your combined loan-to-value ratio. This ratio is calculated by taking the balance of your primary mortgage, adding the amount of the credit limit you want to establish through the HELOC, then dividing that number 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?
As long as the line of credit is less than $250,000, there are no closing costs.
Can I Pay Off My HELOC Early, Without Penalties?
You can pay off your HELOC after three years with no 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.
Can I Use a HELOC to Pay Down My Credit Card (or Other Debt)?
Yes, a HELOC can be used for any expense. A HELOC also has lower interest rates than a credit card, allowing you to pay down the balance quicker! Contact a loan officer to learn more about using a HELOC for debt consolidation.