Open the door to new possibilities
It turns out that home is where the cash is! If your home is worth more than you owe on it, you can use that equity for home improvements, debt consolidation, college tuition payments, or even to take you on your dream vacation. With a home equity loan, you make fixed payments of principal and interest. With a home equity line of credit, you only need to make interest payments during the draw period.
Not ready to apply? Contact a HELOC Specialist
Life can take many directions. That’s why we give our members flexible options to choose a revolving home equity line of credit, a fixed-rate loan or even a combination of both! This gives you control of your situation and allows you to pick the option that best aligns with your cash flow.
With Jovia, you can get a credit line introductory rate as low as 1.79% APR for the first twelve months.‡
Ever had to choose between going big or going home? Now you can go big for your home. You can borrow as much as $500,000, based on the equity in your home.
|Line of Credit ‡||1.790%||$3.69|
|Fixed Loan †||4.000%||$18.42|
Calculate your home equity payments5
HELOCs allow you to make interest-only payments for ten years, after which a principal and interest repayment period of twenty years begins. Line of credit payments for the 20-year repayment period are amortized so that the monthly payment remains the same throughout the repayment period.
While both a Home Equity Line of Credit or HELOC and a Second Mortgage are additional mortgagees on your house, the difference between them is how the funds are paid out and how the loans are managed by the lending institution.
A Home Equity Line of Credit, or HELOC, works as a revolving line of credit with the equity built up in your house as collateral. The credit is available for ten years, known as the Draw Period in which you are only responsible for interest payments. Once the ten years has passed, you enter the twenty-year repayment period where you can no longer draw on the line and are responsible for interest and principle payments. The amount of the payment is determined by your rate and the amount you owe.
Like a HELOC, a Second Mortgage is also a loan that uses your home as collateral though it has many differences. When a second mortgage is opened, the amount of the loan is paid out up front in one lump. The payment amount is set and doesn’t waver.
The Home Equity Line of Credit is a variable rate product tied to Prime Rate. As such, the interest rate cannot be locked. However, if eligible, you will receive an introductory rate for 6 months.
Our Home Equity Line of Credit offers a no closing cost option when you take a minimum advance on your line at the time of closing. The minimum advance amount varies depending on the line amount. If you elect not to take the minimum initial advance, you will need to pay the closing costs at closing.
You have the option to roll those costs into your line and pay them over time.
After the introductory period ends, the interest rate on our Home Equity Line of Credit is based on the Prime Rate plus or minus a margin which is established when the account is opened. This rate is subject to change on a monthly basis.
If you are worried about rising interest rates, you can always "lock-in" the interest rate on a portion or all of your Home Equity Line of Credit!