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Take out a revolving line of credit and set up the equity you've built within your home as collateral. Use just what you need, when you need it with a HELOC. And the interest you pay may even be tax deductible.1 So go ahead and pay for that June wedding, new guest bathroom, or a college education with a line of credit that works with your budget.

A Home Equity Line of Credit is an open type of Home Equity Loan and is based on adjustable home equity loan rates.  Also referred to as, a HELOC, is a loan in which the lender agrees to a set amount of money and the borrower uses the funds “as needed” over a defined amount of time. The equity in your home is used as collateral to secure competitive home equity loan rates and interest paid may even be tax deductible.

As the borrower, you can use the money on your own timeframe — independent from the lenders approval. As a revolving line of credit, a HELOC will allow you to pay for that long-awaited wedding, new guest bathroom or a college education with funds that work within your budget.

A HELOC works similar to a credit card. It’s a revolving line of credit that’s secured by your home.

Draw Period (first 120 months of 240 month schedule): The first part of a HELOC is the draw period. During this time, you, as the homeowner, may borrow amounts within the credit line at your discretion. The draw period allows you to withdraw money an unlimited number of times and interest-only payments, not principal payments, are required on the money borrowed.

Although the draw period allows you unlimited access to your money, home equity line requirements do not force you to withdraw the total loan amount. At the end of the draw period, you only repay the amount used. When the draw period is over, you generally will not be able to access remaining funds even if a portion of the money is unused.

Repayment Period (last 120 months of 240 month schedule): The second half of a HELOC is the repayment period. During this time, you pay back the amount borrowed. Lenders stipulate the timeframe of the repayment period as well as the draw period.    

Variable Rates: HELOC rates are based on adjustable interest, which is dependent on the printed Daily Prime Rate.  HELOC rates will fluctuate, which means you can expect them to change over time.

Contact one of our qualified loan officers to learn more about HELOC timeframes and details regarding home equity line rates. Please call 816.322.2100 or email us at [email protected].*

Anything!  However, it is best to use a HELOC to finance major expenses as opposed to funding the cost of everyday living. If in doubt, run quick math on a home equity loan calculator.

Perhaps you are mapping out your list of projects, a dream vacation or contemplating going back to school. A HELOC can help pay for all of the items on your list plus much more. Below are five great ways to use a HELOC:

  1. Major Home Improvements: High-dollar home improvement projects are a great way to use a HELOC and a great way to increase the value of your home. Home improvement such as a kitchen remodel, garage door replacement and the addition of a deck, yield an above average return on investment. Look into home equity loan requirements and see how they can benefit your home improvement projects!
  2. Major Life Events: Planned or unplanned, life is expensive at times. Personal and family costs such weddings, funerals and births will add additional out-of-pocket expense. A HELOC is a good way to fund major life expenses. Home equity loan rates are often lower than credit cards and will keep you from having to roll over holiday debt into the new year.
  3. Education Expenses: Although worth it, the cost of continuing education continues to rise. If your dream job comes with the cost of college or tech school, consider checking HELOC rates and inquire how to secure the best home equity line of credit. Whether for you or for a family member, the investment will pay off in long-term salary and happiness.
  4. Vacation – Travel: A HELOC is a fantastic way to take that vacation you have been putting off due to budget. With a HELOC, you can grab your suitcase and vacation without worry. Enjoy your trip!
  5. Debt Consolidation: A HELOC can help with financial flexibility through debt consolidation. HELOC rates are typically less than a credit card or personal loan. A HELOC may be just what you are looking for to take charge of your cash flow.

These are just five great ways to put a HELOC to work for you. The possibilities are endless. From an emergency reserve to a family trip abroad, contact Community Bank of Raymore to find out how to secure the best home equity line of credit.

Please contact us to learn more about the application process. One of our qualified loan officers will be happy to assist you with information or details to the following commonly asked questions:

  • How does a home equity line work?
  • How are home equity line rates calculated?
  • What is the turn-around time on a HELOC?

By phone at 816-322-2100 or by email at [email protected]

Home equity line of credit requirements allow for flexibility, instant cash and control over how you use your money.  There are many advantages to using a HELOC:

  • The existing equity in your home is used as collateral backing
  • Funds available anytime without reapplying; apply once, then use repeatedly thereafter
  • Revolving credit – as payments are made the amount on your credit line increases
  • Funds easily available via check writing
  • The interest paid might be tax deductible
  • Local decision-making and processing in Cass County
  • Attentive, friendly service from start to finish

Contact us to learn more about competitive home equity line rates. Get started with a HELOC today!

1Consult a tax advisor.

Disclosures available here.

See a list of our Registered Mortgage Loan Originators.