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What is a Home Equity Line of Credit or HELOC?

A Home Equity Line of Credit or HELOC is a loan that’s most often used to finance a home improvement, maintenance project or any other large purchase. Since your home is usually your most valuable asset, it’s used as collateral for the loan. The term length may last as long as 22 years and HELOC interest may be tax deductible.°

Why should I get a HELOC?

Home Equity Line of Credit loans are typically used for home renovations or other large expenses. However, it should be noted that many people use HELOCs for day-to-day purchases and living expenses. Looking to add value to your home with a renovation or fund a once in a lifetime trip? A HELOC is a great way to do just that!

How does a HELOC work?

  • Once you are approved for and close on your loan, you will have immediate access to use any or all of the funds. From there it’s simple – as you make your monthly payments, those funds become available to use again.
  • Heritage Credit Union offers great features such as online and mobile transfers so you can transfer funds instantly using the mobile app from your HELOC to your checking account. For example, if you are in the checkout line at the hardware store you can use any smartphone device to move money from your HELOC to your checking account.

°Consult a tax advisor for advice.


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