Home Equity Line of Credit
A Home Equity Line of Credit (HELOC) is a form of revolving credit in which a home serves as the collateral. A home equity line of credit is a great way to pay for major home renovations, vehicles, education expenses, debt consolidation, and more!
It’s easy to apply! Use our convenient online application, give us a call at 901-380-7400 or stop by any of our banking centers.
Home Equity Line of Credit Rates
| Loan to Value (LTV) | Terms and Draw Periods | APR |
|---|---|---|
| Up to 80% LTV | up to 20 years/12 year draw period | Prime + 0.00%^ |
| 81% to 90% LTV | up to 20 years/12 year draw period | Contact First South Financial for details. |
How Does a HELOC Work?
With a home equity line of credit, you are approved for a specific amount of credit, much like a credit card. First South Financial sets this amount by taking a percentage (up to 80%) of the home's appraised value and subtracting the balance owed on that mortgage.
Similar to a credit card, a HELOC gives you access to a maximum credit limit and allows you to borrow only what you need, when you need it, during an approved draw period. Your payments will reflect interest and principal on the amount you borrow, not the full line amount.
Because your home serves as collateral, a HELOC can offer lower interest rates than unsecured loans or credit cards.
Unlock Your Home's Potential!
You've worked hard to buy your home and create equity.
Now, a HELOC can help you do more! Remodeling, vehicle purchases, debt consolidation, and more.
The Draw Phase and Repayment Period
During the draw phase, you can access funds up to your approved credit limit. Funds can be used repeatedly as you repay the balance and minimum payments are based on interest plus principal.
After the draw phase ends, borrowing stops and the repayment period begins. You repay the outstanding balance over a fixed term. Payments are structured to pay off principal and interest.
This two-phase structure is what makes a Home Equity Line of Credit more flexible than a traditional loan.
Benefits of a First South Financial HELOC
- Loan-to-Value ratios as high as 90%
- No points, fees, or closing costs*
- Limits as high as $500,000
- Easy application and approval!
- A great low-interest rate
- Access funds via debit card or provided checks.
- No floor rate and no initial draw
- No transaction fees
- Long draw period of 12 years
- Long repayment period of 20 years