Take advantage of your biggest investment.
|
HELOC |
Home Equity Loan |
ADU HELOC |
|
|---|---|---|---|
| Type of loan | Revolving line of credit | Second mortgage | Short-term revolving line of credit |
| Best used for | Upcoming or future home improvements, debt consolidation, emergencies | Upcoming home improvements/repairs or debt consolidation | Home renovations and additions (ADU) |
| Amount4 | up to 500,000 | up to 500,000 | up to 400,000 |
| Terms | 25 years | 10, 15 or 20 years | 22 years |
| Interest rate | Variable5 | Fixed | Variable5 |
| Closing costs | $0 (for lines up to 250,000)6 | No | Yes |
| Monthly fee | $0 | $0 | $50 -$100 during construction period only |
| Accessing funds | At closing or anytime for up to 10 years | Once at closing | Disbursed throughout construction period (up to 2 years) |
| Payment |
10 year interest-only 15-year principal and interest |
Fixed principal and interest payments throughout loan |
2-year interest-only 20-year principal and interest |
| Key differentiator | Quick access to cash as needed | Immediate financial needs with set amount and fixed payments | Allows you to borrow up to 125% of your home's current value |
Fixed and variable-rate options with monthly payments only on what you use
Borrow what you need now or once you’re ready
Check your rate before you apply with no impact to your credit7
Apply online within minutes or connect with a Home Loan Consultant for advice
No application fee, no pre-payment penalty, and no annual fee
Use for home improvements, debt consolidation, ADUs and more
Our Home Loan Consultants are specialized in providing home loan expertise and advice to help you find the right option for your short and long-term goals. Not sure which type of equity loan is right for you? Schedule a complimentary consultation today.
Your home’s equity is the difference between how much you owe on your home and the amount it’s worth. For example, if your home is worth $900,000 and you owe $600,000, you have built $300,000 in equity. You may be able to borrow between 80 –90% of your available equity.
When you get a home equity loan, you receive a lump sum of cash up front. You repay the loan over time with fixed monthly payments. Most home equity loans have a fixed interest rate, where each monthly payment reduces your loan balance and covers some interest costs.
With a HELOC, on the other hand, there’s no lump sum up front. Instead, there’s a maximum amount available for you to borrow — the line of credit, which you can borrow from as long as the line of credit is open.
On an ADU HELOC, funds are using to finance your project (home remodel or ADU), and the term is much shorter.
A home equity loan or line of credit (HELOC) provides access to larger loan amounts than you may otherwise be unable to get, thanks to using your home as collateral. Additionally, the interest rate is typically less than on personal loans.
Finally, there may also be tax advantages to a HELOC (talk to your tax advisor for details).
You should be aware that you must immediately pay off this type of debt if you sell your home, just like you must pay off your first mortgage (if you have one). Additionally, your home could be foreclosed if you don’t pay the loan. That’s because your home is the collateral (the guarantee) for the loan.
Due to their low rates and flexible borrowing options, home equity lines and loans are often more affordable than other types of loans. You can use your loan or line to cover the cost of immediate or future expenses, such as home improvements (big or small), high-interest debt, to add an accessory dwelling unit (ADU) to your home, or other large purchases.
At this time, Patelco does not offer HELOCs for rental properties – only for primary residences. However, if you need to access cash for specific needs, you may want to explore our personal loans.
1 8.00% APR (annual percentage rate) and other terms shown are accurate as of 05/20/2025 and apply to a HELOC for the most qualified applicant at CLTV up to 80%. Not all applicants will qualify for the lowest rate. Rates vary based on property value, line amount and other factors, and will vary for second or vacation homes. The minimum periodic payment is interest-only for the first ten years (“draw period”) followed by fully-amortizing payments to repay the balance over the final fifteen years. No draws will be allowed during the repayment period. Payments and rate can adjust monthly. Payments will increase if rates increase. At the end of the draw period, your required monthly payments will increase because you will be paying both principal and interest. The rate is calculated using an index plus a margin. The index used is the Prime Rate as published in The Wall Street Journal Western Edition on the last business day of the month prior to the change. The current prime index is 7.50. Minimum interest rate is 4.0%. Maximum interest rate is 17%.
2 8.056% APR (Annual Percentage Rate) and other terms shown are accurate, as of 05/20/2025. The fixed Annual Percentage Rate of 8.056% is available for 10-year second position home equity installment loans with loan-to-value (LTV) of 80% or less. Loan payment example: loan for 120 months at 8.056% APR assuming no down payment, monthly payments would be $607.00. Loan terms available are 10, 15, or 20 years; however, the monthly payment amount may differ from the example used above based on the loan amount and loan term selected. Payment example does not include amounts for taxes and insurance premiums. Loan approval is subject to credit approval and program guidelines. Interest rates and program terms are subject to change without notice. Property insurance and the fee to release an existing mortgage may be required. Fixed rate home equity loans are not available in 1st lien position. Home Equity Loans and lines of credit are available on California primary residences only.
3 Home Equity loans and lines of credit are available on California properties only. 9.00% APR (annual percentage rate) and other terms shown are accurate as of 05/20/2025 and apply to an ADU HELOC for the most qualified applicant at CLTV up to 125%. Not all applicants will qualify for the lowest rate. Eligible on primary residences only. Rates vary based on property value, credit score, line amount and other factors. The minimum periodic payment is interest-only for the first two years (“draw period”) followed by fully-amortizing payments to repay the balance over the final twenty years. No draws will be allowed during the repayment period. Payments and rate can adjust monthly. Payments will increase if rates increase. At the end of the draw period, your required monthly payments will increase because you will be paying both principal and interest. The rate is calculated using an index plus a margin. The index used is the Prime Rate as published in The Wall Street Journal Western Edition on the last business day of the month prior to the change. The current prime index is 7.50. Minimum interest rate is 4.0%. Maximum interest rate is 17%.
4 May vary depending on current appraised value, creditworthiness and existing liens on property.
5 Rate and payments are based on Prime plus a margin. Changes to Prime will result in changes to the rate and payment.
6 The minimum credit line amount is $10,000 and the maximum is $500,000. Patelco Credit Union will pay customary closing costs on lines up to $250,000 (excludes ADU Home Equity Line of Credit). If your Account is opened under the “No Closing Cost” loan program, there will be no lender fee and no charge for customary closing costs including: Automated Valuation Model (AVM) to determine property value, Lender”s title insurance, courier, points, wire fees, notary, escrow fee, recording of Patelco documents, flood certification, credit report, loan origination, or tax service. Only these fees listed will be paid by Patelco Credit Union if the stated services are conducted through our preferred service providers. If conditions for the “No Closing Cost” program are not met, including the use of service providers associated with the program, then you will be responsible for any associated closing fees which will not be paid by Patelco Credit Union. The “No Closing Cost” program does not include extraordinary items, including but not limited to the following: residential real estate appraisals, additional credit reports for the same loan transaction, grant deeds and any associated notary or recording fees, missed appraisal appointments or “trip charges”, solar lift or termination, and any fees to close another account as the result of this Account. Borrower is responsible for closing costs over $250,000. Closing costs range from $0 to $2,500. This offer does not include escrow or recording fees, or additional notary fees that may result from changes in title, vesting or notary appointments.
7 Patelco runs a “soft” credit pull to determine which pre-qualification offer you qualify for. This doesn’t affect your credit score. If you choose to proceed with a loan application, Patelco will request your full credit report from one or more credit reporting agencies. This will be a “hard” pull and may affect your credit. If necessary, we may also share certain information about you with third parties, like our insurers, to process your request.
Read the HELOC Program Disclosure.
Read the ADU HELOC Program Disclosure.
