home equity

loans and lines of credit

Build your dream home with our no-fee, no-closing cost home equity loans.

Installment loans are as low as 4.10% APR1. HELOCs are as low as 3.25% APR2, plus you could qualify for a six-month intro rate as low as 0.99% APR4!

the difference is in the details

Know the differences between home equity loans.

Home equity is the difference between your home’s market value and the amount that you owe on your mortgage. You can borrow against your home’s equity to fund large projects or major expenses.

A home equity installment loan and a home equity line of credit (HELOC) are both great ways to borrow funds for home improvement or remodeling projects, or to help pay for college tuition, debt consolidation, medical expenses, and other large expenses. Here’s how they work.

Home Equity Installment Loan

With a home equity installment loan, you receive your funds in a single lump sum. This type of loan is ideal if you have a large, one-time expense, or if you want to consolidate debt and focus on paying it off. It offers fixed rates and a steady monthly repayment schedule for up to 15 years. Since the loan is secured by your home’s equity, the interest you pay may be tax deductible.

As low as
4.10%
APR1

features
  • Borrow a specific, one-time dollar amount against the available equity in your home
  • Choose a loan term that works for you
  • Make predictable, fixed-rate monthly payments

Home Equity Line of Credit

A home equity line of credit lets you borrow funds when you need them, up to your available credit line. With this revolving line of credit, you can borrow, repay, and borrow again. Much like a credit card, the credit amount becomes available again as the outstanding balance is repaid. This can be useful if you’re planning a major project with multiple expenses or if you want ongoing access to funds for emergencies. HELOCs feature flexible repayment options.

As low as
3.25%
variable APR2

features
  • You could qualify for a low six-month intro rate as low as 0.99% APR4
  • Borrow as much or as little as you need, up to your credit limit (minimum of $10,000)2
  • Get all the benefits of banking with United such as online and mobile banking, and a HELOC Visa® card
  • Low monthly payments

your home’s value unlocked

With United, there are no origination fees, closing costs, or annual fees. Both our Home Equity Installment Loan and our Home Equity Line of Credit are not limited to any specific use and are easy to apply for online. Best yet, by signing up for autopay with your Ultra Checking or Rewards Checking account, you’ll receive a discount on your rate5.

comparison chart

Get the breakdown of what makes our Home Equity Installment Loan and Home Equity Line of Credit different from one another.

Home Equity
Installment Loan
Home Equity
Line of Credit
Interest-Only
HELOC
consider if...
Installment Loan you have a large one-time expense
Line of Credit you have multiple expenses during a period of time
Interest-Only Line of Credit need to make smaller payments initially but will be able to make larger payments later
details
Rates
Installment Loan Fixed, 4.10 - 14% APR1
Line of Credit Variable, 3.25 - 12.50% APR2
Interest-Only Line of Credit Variable, 3.75 - 11.75% APR3
Introductory Rate
Installment Loan None
Line of Credit 0.99% APR for 6 months4
Interest-Only Line of Credit 0.99% APR for 6 months4
Terms
Installment Loan Up to 15 years
Line of Credit 10 year draw period
Interest-Only Line of Credit 10 year draw period
Maximum CLTV

Combined Loan to Value

Installment Loan 90%
Line of Credit 90%
Interest-Only Line of Credit 80%
Maximum DTI

Debt to Income

Installment Loan 50%, for 500k+: 55%
Line of Credit 50%, for 500k+: 55%
Interest-Only Line of Credit 50%, for 500k+: 55%
Minimum Loan Amount
Installment Loan $10,000
Line of Credit $10,000
Interest-Only Line of Credit $10,000
fees & penalties
Origination Fee
Installment Loan None
Line of Credit None
Interest-Only Line of Credit None
Closing Fee
Installment Loan None
Line of Credit None
Interest-Only Line of Credit None
Annual Fee
Installment Loan None
Line of Credit None
Interest-Only Line of Credit None
Early Termination Fee

Applies to home equity loans closed within 24 months of the plan's opening date

Installment Loan up to $250
Line of Credit up to $250
Interest-Only Line of Credit up to $250
features
Debt Protection6
Installment Loan Available
Line of Credit Available
Interest-Only Line of Credit Not Available
Autopay Discount

Discount applies to automatic payments from a United Checking Account

Installment Loan 0.25%
Line of Credit 0.25%
Interest-Only Line of Credit 0.25%
Visa® Card
Installment Loan Not Available
Line of Credit Available
Interest-Only Line of Credit Available
interested?

good to know

While the rate on HELOCs is variable, it is tied to the Wall Street Journal Prime Rate which is easy to track and the rate is capped. In the event of an increase in rate, the required amount for a minimum payment, 1.5% or $100 whichever is greater, will never change.

Home Equity Installment Loans by United are available on owner occupied dwellings only, primary and secondary homes. They are not eligible if the property is currently listed for sale or draws an income (as a rental or AirBnB). Our Home Equity Loans are available in every state except Hawaii, Alaska, and Texas.

common questions

A: In some situations, a home equity installment loan may meet the federal government’s definition of a “Higher Priced Mortgage Loan.” In such cases, if there is no first mortgage prior to your home equity installment loan, you will be required to establish and maintain an escrow account for payment of taxes and insurance for a minimum of 5 years. If the loan is deemed to be a High-Cost Mortgage loan, you will also be required by law to go through pre-counseling.

In instances where a HELOC application is identified as being a High-Cost Mortgage, the transaction cannot be continued as a HELOC. Instead it can be changed to a Home Equity Installment Loan or some other loan product, if viable.

A: Home equity loans and lines of credit approvals are valid for 60 days from the credit report date.

A: The amount of your loan or line of credit is determined based on the amount of equity in the house and whether the Combined Loan to Value (CLTV) is over or under 80%.

A: United offers the payment option of interest only. With a traditional HELOC, you begin paying back both principal and interest right away, month by month. With an interest-only HELOC, you pay only the monthly interest during the draw period. Once the draw period is completed, you begin to repay the principal. This can typically minimize the size of your monthly payments initially. However, the low payments on an interest-only HELOC could increase significantly once the draw period ends and the repayment for the principal begins.

These interest payments are calculated on the accumulated unpaid interest from the previous month cycle. For example: a February 25th payment would include the accumulated unpaid interest from January 1st-January 31st.

make your home plans happen

using your home equity

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still not sure?

Schedule an appointment to discuss your options, learn about United, or contact us with your questions to make the decision easier.