Home Equity Line of Credit

The two biggest differences between a Home Equity Loan and a Home Equity Line of Credit are the types of interest rates for each loan and how one receives their funds. Home Equity Loans are fixed-rate loans and they are given to the member in one large lump sum. Home Equity Lines of Credit are variable rate loans and members receive access to a line of credit. They can borrow as much as they need without having to commit to a large lump sum.

A Home Equity Line of Credit (often called “HELOC”, pronounced hee-lock) is a loan that functions similarly to a credit card (sans plastic.) You apply for a certain amount of funds and once you’re approved for a total amount to borrow, you’ll make advances (aka withdrawals) up to that amount whenever you want — zero fees or additional approval required. It helps to think about a HELOC like a life line that you tug on when you need a little bit of extra support. Just tug on the line and make withdrawals that work for you. This means you are only borrowing the money you need to complete a project, not one giant lump sum like a traditional loan.

This loan is great for projects that don't have a fixed price. If you are remodeling your kitchen, adding a deck to your home, paying for some additional college courses, etc. this is a great option for you. It allows you the flexibility to borrow what you need instead of requiring you to borrow a larger sum.

Yes! You can make additional payments on all Fortera Loans.

These financial tools are very similar. The largest difference between the two is how they are accessed. Credit Cards are loans designed to be convenient for our members. Need a mini loan? Grab your credit card and get what you need. Because HELOCs do not come with a card, spending money does not usually happen instantly. For many of our members that do not feel comfortable with a Credit Card or struggle with overspending or splurge-spending, a HELOC can be a great tool because it requires you to slow down and think before making a large purchase.

As many times as you would like. There is no limit to how many times you can make a withdrawal on a HELOC.

You’ll have 10 years to borrow, and 20 years to repay. For the first 10 years of your HELOC, you’ll only pay the interest, and only on the amount you actually borrow. Starting year 11, you’ll begin to repay the borrowed loan amount plus interest, and you’ll have 20 years total to pay back what you use.

To verify your identity, we always ask that you come prepared with a government issued ID. It is important that it is not expired. Examples of acceptable IDs include a State Driver's License or a U.S or Foreign Passport. If we have trouble validating your ID, we may ask for a secondary ID. If you have a question about whether or not an ID can be used, just text us at 931.431.6800.

In addition to identification, you will also need to bring:

• A copy of your homeowners insurance (the declaration page)
• A copy of your recorded deed
• A home assessment or appraisal
• Your income verification
• Copies of billing statements with full account numbers and payment addresses (this only applies to debt consolidation)
• A 10-Day payoff quote (this only applies to debt consolidation)