Qualifying for a HELOC
To qualify for a HELOC, you should have available equity in your home, meaning that the amount you owe on your home must be less than the value of your home. One of our lenders will look at your credit score and history, employment history, monthly income and debts, just as when you first got your mortgage.
Variable Interest Rate
When you have a variable interest rate on your home equity line of credit, the rate can change annually. The variable rate is calculated from both an index and a margin.
An index is a financial indicator used by banks to set rates on many consumer loan products. Most banks, including R Bank, use the U.S. Prime Rate as published in The Wall Street Journal as the index for HELOCs. The index, and consequently the HELOC interest rate, can move up or down.
As you withdraw money from your HELOC, you’ll receive monthly bills with the minimum payment due. Payments may change based on your balance and interest rate fluctuations and may also change if you make additional principal payments.
