Home Equity Line of Credit (HELOC)

Our HELOC, Your Choice

Introductory Rates As Low As 2.99% APR*

Your home is one of your most valuable assets, and a home equity line of credit, or HELOC, gives you the flexibility to tap into that equity when you actually need it. Unlike a home equity loan where you receive a lump sum all at once, a HELOC works more like a credit card: you have access to funds up to your approved limit, and you only pay interest on what you actually use. For families throughout NEPA, a HELOC has become an essential financial tool for everything from home improvements to unexpected expenses. At Choice One Community Credit Union, we understand that one size doesn’t fit all when it comes to borrowing, which is why we offer competitive HELOC rates with the flexibility and personal service you’d expect from a local credit union.

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How Does a HELOC Work?

A HELOC is a revolving line of credit secured by the equity in your home. When you open a HELOC with us, you’ll enter what’s called the draw period. During this time, typically 5 to 10 years, you can draw funds as needed, up to your approved limit. You have the flexibility to take what you need, when you need it. Maybe you’re planning a kitchen renovation and need $5,000 now, $8,000 next quarter, and $3,000 later in the year. With a HELOC, you access exactly those amounts on your timeline.

During the draw period, you’ll typically make payments based on whatever amount you’ve borrowed. Sometimes, interest only. After the draw period ends, you enter the repayment period, where you’ll pay both principal and interest. The variable rate means your payments may adjust based on market conditions, so it’s worth understanding how rates work before you commit.

The key advantage? A home equity line of credit gives you the security of knowing funds are available without having to reapply each time. You control the pace and the amount, making it ideal for ongoing projects or unexpected situations.

Benefits of a Choice One HELOC

When you choose Choice One Community Credit Union for your HELOC, you’re getting more than just competitive rates. You’re working with a financial partner that knows the NEPA community and values your long-term success.

• Flexibility: Draw funds as needed.
• Competitive Intro Rate: Enjoy a special low 2.99% APR* for 6 months.
• No Fees**: Open your HELOC for less on owner-occupied properties.
• Local Decision-Making: Unlike big banks, we make lending decisions right here in NEPA. Your relationship with us matters.
• Borrow Up to 80% of Value: Tap into your home’s equity with a generous loan-to-value ratio that puts more cash in your hands.
• Terms Up to 20 Years: Enjoy flexible repayment options that fit your budget and long-term financial goals.

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What Can You Use a HELOC For?

The beauty of a HELOC is that it’s useful for so many purposes. Here are some common reasons homeowners in our region have opened a line of credit:

• Home Renovations and Repairs: Kitchen upgrades, bathroom remodels, roof repairs, or energy-efficient upgrades that increase your home’s value.
• Debt Consolidation: Roll high-interest credit card debt into a HELOC with a lower rate.
• Education Expenses: Fund college tuition, graduate school, or trade certifications for yourself or your children.
• Emergency Fund: Have quick access to cash when unexpected medical bills or urgent home repairs arise.
• Large Purchases: Finance a vehicle, wedding, or other significant life events.

HELOC vs. Home Equity Loan: Understanding the Difference

The terms get thrown around interchangeably sometimes, but a HELOC and a home equity loan are different products designed for different needs. Understanding which one makes sense for you is crucial.

A home equity loan is a one-time lump-sum borrowing. You apply, get approved for an amount, and receive all the money at once. You then make fixed monthly payments of both principal and interest over a set term, usually 5 to 20 years. This works beautifully if you know exactly how much you need and when. It’s simple, predictable, and the fixed rate means your payment never changes.

A HELOC, on the other hand, is a flexible line of credit where you draw what you need, when you need it. You only make payments on what you borrow. For homeowners funding a large project in phases or who want emergency access to funds, a HELOC offers superior flexibility. Want to learn more about fixed-rate options? Visit our home equity loans page.

HELOC Rates and How They Work

Our variable rate HELOC is indexed to the prime rate, which means your interest rate will adjust periodically. As the prime rate moves, so does your rate, which is why it’s called variable.

Here’s what this means practically: if the prime rate goes up, your HELOC rate may go up. If it goes down, your rate may come down. This creates both opportunity and risk. In a stable or declining rate environment, variable rates may save you money compared to fixed-rate home equity loans. In a rising rate environment, the opposite may be true.

We encourage homeowners to think about their comfort level with rate uncertainty. Some prefer the predictability of a fixed rate, while others value the flexibility of a variable HELOC.

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How to Qualify for a HELOC

Qualifying for a HELOC isn’t overly complicated, but lenders do look at a few key factors. We want to make sure the borrowing makes sense for you, and that you have the capacity to repay.

Home Equity: Most lenders look for borrowers with at least 15% to 20% equity in their homes. Some programs allow lower equity levels. We calculate your available credit limit based on your home’s value and existing mortgage balance.

Credit Score: A solid credit score, typically 660 or higher, strengthens your application. We look at your credit history to understand how responsibly you’ve managed previous debts. If your score isn’t perfect, don’t be discouraged; we’re often more flexible than national banks, and we consider the whole picture.

Income Verification: Lenders need to confirm you have the income to support payments. We’ll ask for recent pay stubs, tax returns, or other proof of income depending on your employment situation.

Home Appraisal: We may order an appraisal to determine your home’s current value. This helps us calculate how much credit you can access based on your equity.

Frequently Asked Questions About HELOCs

Can I use a HELOC multiple times while still in the draw period? Yes, absolutely. That’s one of the main advantages. During the draw period, you can access your line of credit as needed. Take money this month, nothing next month, then more the following month, whatever works for your situation. You only make payments based on the balance you’ve actually drawn.

What happens if rates go up? With a variable rate HELOC, your rate can increase if the prime rate rises. If you’re carrying a balance, this means your interest charges will be higher, and your monthly payment will increase.

Is there a minimum amount I have to borrow? Typical HELOC minimums vary, and many programs require you to draw a minimum amount initially or within the first year. These are important considerations when choosing a lender.

What are the closing costs? HELOC closing costs might include, but are not limited to, appraisal fees, title search, and processing fees. Choice One currently charges no fees.**

Can I get a HELOC with bad credit? While a strong credit score helps, it’s not an automatic disqualifier. Since a HELOC is secured by your home equity, lenders have recourse if payments aren’t made. If your credit is challenged, we’ll consider it. You might qualify with a higher rate, or we might recommend addressing some credit issues first and then reapplying.

How long does it take to get approved? Timeline varies, but many HELOC applications can be approved within 3 to 5 business days if everything comes back smoothly. The appraisal and title work take the longest. We’ll keep you updated throughout the process so you know where things stand.

Open Your HELOC with Choice One Today

Whether you’re planning a home renovation, managing unexpected expenses, or simply want a financial safety net, a HELOC from Choice One Community Credit Union offers the flexibility and competitive rates you deserve. We have branches in Wilkes-Barre, Hazleton, Plains Township, Kingston, and Old Forge, all within NEPA, and our loan officers are ready to discuss whether a home equity line of credit is right for you. Call or stop by, we’re here to make banking simple and personal. Or tap the link below to apply for your HELOC online.

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*APR=Annual Percentage Rate. Rates shown are for qualified borrowers and are subject to change without notice.  Additional rates and terms are available. Rates shown for HELOC is a special introductory rate for a 6-month period and in effect until 6/30/2026. At the end of the introductory rate term, the rate converts to the Prime Rate. Maximum Rate is 18.00%. Minimum Rate is 5.00%. Minimum monthly payment $100.00. The annual percentage rate can change quarterly on the first day of January, April, July and October. There is no limit on the amount by which the annual percentage rate can change during any one year period.

**No Closing Cost Promotion applies to owner-occupied properties only. Third party fees will be reimbursed for the cost of originating your loan excluding any property tax or transfer fees. Fee Reimbursement–The lender may have paid some third party fees associated with this loan. The Borrower agrees to reimburse the Lender the actual amount of bona fide third party fees paid on the Borrower’s behalf, as permitted by applicable law, if the loan is paid off within twenty four (24) months after consummation. Contact the credit union for complete details.

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