Home Equity Line of Credit

Home Equity Line of Credit (HELOC) FAQs

• How is a HELOC different from a home equity loan?

  A HELOC is a form of revolving credit, similar to a credit card. 

  • You get a credit limit and you can choose how much of the funds you want to use at any time. 

  • You only pay interest on funds used, and the rate is usually variable.

  • Your monthly payment will vary depending on your balance.

  A Home Equity Loan is a type of installment loan, like an auto loan or personal loan.

  • You get a lump sum payment, and make fixed payments each month until it's paid off in full. 

  • You get a fixed rate and your loan is amortized, which means more of your payment goes toward interest at the start and more on your principal at the end. 

  Both HELOCs and Home Equity Loans borrow against your home equity so they are known as secured loans.

   
• What can I use a home equity line of credit for?

  You can use your HELOC for a wide range of purposes including:

  • Home improvements, renovations, and remodeling 

  • Debt consolidation of high-interest credit cards or other loans

  • Vacations and weddings

  • Medical bills

  • Unexpected expenses and emergency funds

• How much can I borrow?
  JHFCU will lend up to 90% of the value of your home, minus your first mortgage, with a minimum credit line of $20,000.
• What rate will I get for my HELOC?

  The rate you get will be based on your: 

  • Credit score

  • Loan-to-value (LTV) ratio

  • Current market rates

  HELOC rates may change each month based on the Prime Rate shown in the Wall Street Journal.

• How can I make my JHFCU HELOC payments each month?

  There are many options for making a payment when you get a HELOC from JHFCU:

  Online Transfer: Set up a recurring transfer or make a one-time transfer online from your checking, savings, or another transactional account to your mortgage account. Payments are credited and account balances are updated immediately. 

  JHFCU TeleBranch 24: Transfer your payment from a JHFCU account to your mortgage; just use your loan suffix number (EX: XXXXXXXXX-XX.)

  Pay Online from an Outside Bank: Set up JHFCU as a payee using your 9-digit JHFCU Account number - 2-digit loan suffix number (EX: XXXXXXXXX-XX.) 

  Pay by Check at a Branch or via Mail

  Pay by Transfer In-Person

  NOTE: When setting up Online Bill Payment from an outside account, use JHFCU’s main address, 2027 E Monument St, Baltimore, MD 21205
• Do I need to be a member of Johns Hopkins Federal Credit Union to get a HELOC?

  Yes, you'll need to become a member first. Joining is quick and easy, see our eligibility requirements and fill out your application here!

  Then you'll be set to use your loan funds while enjoying all the benefits of credit union membership, like great rates and friendly, local service.