Home Equity Line of Credit (HELOC)

Use a HELOC to consolidate debt, improve your home or make a large purchase.

Choosing a HELOC from Aspire

Home equity lines of credit (HELOC) allow you to borrow money using the equity or value of your home as collateral. HELOC rates tend to be lower and may be a better alternative than a credit card or personal loan, and interest paid may be tax deductible. Our HELOC interest rates are variable and can change monthly, please inquire with a loan officer to learn about current market rate. 


Uses of a HELOC
  • Home improvement projects
  • Debt consolidation (including higher interest rate credit cards)
  • Tuition or other ongoing expenses over time
  • Home repairs, such as windows, new roof, energy efficient projects
How HELOCs Work
  • Open-end loans: HELOCs are open ended meaning you borrow as you go – instead of borrowing a set amount of funds all at once, you withdraw and repay as needed.
  • Draw period: HELOC’s have a draw period – usually several years; you can withdraw funds during this time, and only pay interest on the loan. For example, Aspire home loans has a 10  year draw period meaning you can withdraw funds from the loan for 10 years. If you were approved for a $50,000 HELOC, you could withdraw (and pay back) from that $50,000 amount at any time during that 10 years.
  • Repay period: At the end of the loan, HELOC’s go into a repay period – usually several years; you no longer withdraw on the loan and now repay what’s owed.  Let’s say you borrowed $32,000 of your $50,000 HELOC and already repaid $5,000. You now spend the remaining “repay” period repaying the remaining $27,000 in monthly installments. Aspire’s repay period is 5 years.

Still have questions? Ask away.

 We’re here to help answer any questions and to help you make the best decision for you and your family. Speak to one of our professional staff members at 701-837-5353.