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Rates effective as of September 1, 2021

Home Equity Line of Credit (HELOC) Rates

Buying a new home is a pretty big deal for most people. With most of your money tied up in a mortgage and down payment, you might find that you don't have free cash on hand for other larger purchases.

But we have some good news: as a homeowner, you can access funds with a Home Equity Line of Credit (HELOC).

A UMe HELOC gives you access to a revolving line of credit, usually at a lower interest rate than personal loans or credit cards. Rather than being based purely on your credit history, a HELOC is doubly secured by your home. But like a credit card, you can access your line of credit whenever you need it. And your credit normally doesn't draw interest unless you use it.

So what's the deal with these home equity lines of credit? And how can you get your hands on one? Keep scrolling for more info on what UMe can offer our members who are interested in HELOCs.

HELOC rates at UMe

At UMe, members can now borrow up to $400,000 (up from our previous limit of $250,000). And we have a new introductory rate: 2.99% for 12 months.

Here's some more exciting news: When you apply for a UMe HELOC, there are absolutely no fees for your application, escrow, credit report, or your recording fees.

Need a clearer picture? Check out our chart below for more information on current HELOC rates and associated fees and costs.

Home Equity

Loan Type Terms  APR* 
Home Equity Line of Credit (HELOC)
10 year draw/20 year draw
80% LTV
60% LTV
4.00-10.75%
4.00-10.25%
NEW: ASK ABOUT OUR 2.99% 12-MONTH HELOC INTRODUCTORY RATE!
Application fee $0
Escrow fee $0
Credit report fee $0
Recording fee $0
Appraisal fee paid directly to the appraisal company (typically runs between $250 - $400)
Title insurance $350 (fee can be included in loan, if desired)




*UMe Credit Union may obtain desktop appraisals for loans with 60% LTV and a loan amount up to $200,000.

You can draw money from your line of credit for up to 10 years. You can also transfer your funds to your UMe checking account for easy access to cash when you need it.

With the low fees—and even lower introductory interest rate—members can use their home equity line of credit to cover large costs and borrow against the equity of their home.

More HELOC Resources

Want to understand more about applying for a Home Equity Line of Credit through UMe before filling out the paperwork? Check out any of our handy FREE resources and tools to help you through the process:

Frequently Asked Questions

Still have questions about a home equity line of credit? Find answers to some questions UMe members ask, well, frequently!

What does LTV mean?

Loan-to-value ratio (or LTV) refers to the difference between the balance of your mortgage and the appraised value of your house. Other factors can affect your ratio including whether you have any liens or a second mortgage.

What is a desktop appraisal?

A desktop appraisal is just a fancy term for a simple valuation of your home.

A full appraisal involves an inspector visiting your property to take pictures and evaluate the condition of your home. (So you might want to tidy up beforehand!) But a desktop appraisal just involves researching documents, like tax records, to determine the value of your home.

If you've done a lot of renovations or really decked out your home, you might want to request a full appraisal to take your home's improved condition into account. But, for a home in average condition, a desktop appraisal will usually suffice.

What are the current HELOC rates?

HELOC rates fluctuate depending on various factors, but they typically range from 2.99% (our current introductory rate!) to 21%.

Factors such as your credit score, determined repayment period, and your debt-to-income ratio will impact your individual rate offer.

Can my credit score impact my HELOC rate?

Lenders typically require a credit score of at least 680 for a HELOC. But the factors that determine your HELOC rate will vary based on the financial institution issuing your HELOC.

As with any loan or line of credit, if you have a higher score, you'll typically be more eligible for lower rates.

Does opening a HELOC affect my credit?

A HELOC is similar to a credit card: it requires making monthly payments, and you only have access to a limited amount of credit. So, like a credit card, opening a HELOC—and accessing your available credit—will impact your credit score.

By making regular payments and keeping your debt-to-income ratio low, you can maintain a healthy credit score.

Apply for your competitive HELOC rate today

With access to a home equity line of credit, you can cover renovation costs, consolidate your debts, and cover large expenses like college tuition, medical bills, or even a vacation. And once you pay back what you initially borrowed against your equity, you can tap into your line of credit to cover more of life's expenses.

UMe makes it easy to access a HELOC, with low interest rates, now starting at 2.99%, and no application fees for credit union members. Make sure you have what you need to cover all of life's costs.

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