Turn the equity in your home into financial flexibility.
If you’ve owned your home for a few years, you’ve likely built up equity—and that equity can help you cover major expenses. From home renovations to college tuition or consolidating high interest debt, a Home Equity Line of Credit (HELOC) can be a smart way to access funds using the value you’ve already earned.
What is Home Equity?
Home equity is the difference between your home’s current value and what you owe on your mortgage.
Example:
If your home is worth $300,000 and you owe $200,000, you have $100,000 in equity. Many lenders allow you to borrow up to 80%-85% of your available equity.*
Equity can grow as your home value rises or your mortgage balance drops, making it a powerful borrowing option for many homeowners.
Discover how much equity you have in your home with our Home Equity Calculator.
What is a HELOC?
A HELOC is a revolving line of credit, similar to a credit card, secured by your home’s equity. You’re approved for a credit limit and borrow only what you need, when you need it.
Key benefits:
- Typically, lower interest rates than credit cards or personal loans
- Flexible access to funds throughout the draw period
- Ability to reuse available credit as you repay your balance
Why Homeowners Use HELOCs
There are many reasons why borrowers decide to tap into their home's equity. The most common reasons include:
Debt Consolidation
Combine high interest balances into one payment—often at a lower rate—making debt easier to manage. Calculate your own payoff with our Home Equity Debt Consolidation Calculator.
Home Improvements
From remodeling projects to unexpected repairs, investing equity back into your home can increase comfort and long-term value. Interest may be tax deductible when funds are used for qualifying improvements.**
Tuition and Education Costs
A HELOC may offer competitive rates compared to some student loans, giving families another way to manage education expenses.
Emergency Expenses
A HELOC can act as a financial safety net when unexpected costs arise, especially if savings are limited.
How a HELOC Works
Draw Period (Usually 5–10 Years)
The initial window of time when you can borrow against your home equity line.
- Access funds as needed
- Minimum payments are often interest only
- Paying more can reduce your balance faster
Repayment Period (Often 10–20 Years)
The phase following draw period, additional advances may not be taken and amortizing payments are made until the balance is paid.
- No new borrowing
- Payments include principal and interest
- Monthly payments typically increase
Planning ahead can help you avoid payment surprises later.
Things to Consider Before Applying
-
Variable Interest Rates: Payments may rise if rates increase.
-
Your Home Is Collateral: Failure to repay could put your home at risk.
- Higher Future Payments: Payments will be higher if only interest is paid during the draw period.
Is a HELOC a Good Fit for You?
A HELOC can be a flexible, cost effective way to use the value you’ve built in your home—whether you’re planning, consolidating or preparing for the unexpected. Understanding how a HELOC works can help you borrow confidently and responsibly.
Before applying, review your goals and speak with one of our specialists. We’re here to help you explore your options and find the right solution for your needs.
*"How Much Can You Borrow with a HELOC?", Experian
**Atlantic Union Bank does not act as a substitute for the tax advisors you may need. Please consult a tax professional with related questions.
This is not an offer of credit or commitment to lend. Actual loan qualification is subject to verification and approval of income, credit, property appraisal, and other factors. Adequate property insurance may be required. Additional fees, terms and conditions may apply.