HELOC Your Home's Credit Card with Lineage Bank

Apr 10, 2023 at 11:14 am by RMGadmin

The Good, The Bad and The Equity with Lineage Bank
The Pros and Cons of Home Equity Lines of Credit
A home equity line of credit (HELOC) allows homeowners to borrow against the value of their home by tapping into its equity. HELOCs are often used to finance home improvement projects, major purchases or consolidate debt.   Before making plans with what to do with your home equity line of credit, take a moment to learn about some of the finer points of HELOCs.   
How HELOCs Work
A HELOC works much like a credit card or any other line of credit. Lenders use the value of your home to set the limit of the HELOC. You can make advances from the HELOC until the limit is reached or the draw period ends.  
A HELOC has two phases:
Phase 1: The Draw Period is when money is initially borrowed with
a minimum monthly payment – usually interest only.Phase 2: The Repayment Period is when money can no longer be borrowed. Payments of the principal and interest must be made, or the full outstanding balance is due for repayment.  
Benefits of a HELOC
The HELOC process is typically easy and quick. Once set up, your home equity line will provide you convenient access to funds set at a lower rate than other credit lines. You will also have the flexibility of having funds available over time, as needed, as you repay your outstanding balance.  


To explore the benefits of a HELOC, call our Lending team at 629.248.9092 or visit lineagebank.com/contact-us. We will help you make an informed decision that best meets your needs.  Lineage Bank, Member FDIC and Equal House Lender.