Much like a credit card that allows you to borrow against your spending limit as often as needed, a HELOC gives you the flexibility to borrow against your home’s equity.
For example, say you have a home worth $400,000 with a balance of $250,000 on your first mortgage and you want to access up to 80% of your home’s value (based on Combined Loan To Value – CLTV) stats. You can establish a HELOC with up to a $70,000 limit:
- Home Value at $400,000 x 80% = $320,000.
- 80% minus what you owe is $320,000 – $250,000 = $70,000.
- $70,000 would be the amount you could use, for this 80% CLTV example.
However, Credit Union of Denver has higher combined loan to value options, up to 100%, if you want to borrow a higher amount. Use our Home Value Checker to see what your home may be worth.
A HELOC has two phases. First is the draw period, followed by the repayment period.
During the draw period, you can borrow from the credit line by checkbook or card. The length of the draw period for Credit Union of Denver is 10 years.