Home Equity Loan and Lines of Credit | Loans | United

the difference is in the details

Know the differences between home equity loans.

Home equity is the difference between your home’s market value and the amount that you owe on your mortgage. You can borrow against your home’s equity to fund large projects or major expenses.

A home equity installment loan and a home equity line of credit (HELOC) are both great ways to borrow funds for home improvement or remodeling projects, or to help pay for college tuition, debt consolidation, medical expenses, and other large expenses. Here’s how they work.

home equity installment loan

Home Equity

Installment Loan

With a home equity installment loan, you receive your funds in a single lump sum. This type of loan is ideal if you have a large, one-time expense, or if you want to consolidate debt and focus on paying it off. It offers fixed rates and a steady monthly repayment schedule for up to 15 years. Since the loan is secured by your home’s equity, the interest you pay may be tax deductible.

As low as
5.10%
APR1

features
  • Borrow a specific, one-time dollar amount against the available equity in your home
  • Choose a loan term that works for you
  • Make predictable, fixed-rate monthly payments

Apply Now Home Equity Loan Rates home equity line of credit

Home Equity

Line of Credit

A home equity line of credit lets you borrow funds when you need them, up to your available credit line. With this revolving line of credit, you can borrow, repay, and borrow again. Much like a credit card, the credit amount becomes available again as the outstanding balance is repaid. This can be useful if you’re planning a major project with multiple expenses or if you want ongoing access to funds for emergencies. HELOCs feature flexible repayment options.

As low as
4.75%
variable APR2

features
  • You could qualify for a low six-month intro rate as low as 1.99% APR4
  • Borrow as much or as little as you need, up to your credit limit (minimum of $10,000)2
  • Get all the benefits of banking with United such as online and mobile banking, and a HELOC Visa® card
  • Low monthly payments

Apply Now HELOC Rates

your home’s value unlocked

With United, there are no origination fees, closing costs, or annual fees. Both our Home Equity Installment Loan and our Home Equity Line of Credit are not limited to any specific use and are easy to apply for online. Best yet, by signing up for autopay with your Ultra Checking or Rewards Checking account, you’ll receive a discount on your rate5.

comparison chart

Get the breakdown of what makes our Home Equity Installment Loan and Home Equity Line of Credit different from one another.

home equity installment loan

Home Equity
Installment Loan

home equity line of credit

Home Equity
Line of Credit

interest only heloc

Interest-Only
HELOC

consider if…

Installment Loan

you have a large one-time expense

Line of Credit

you have multiple expenses during a period of time

Interest-Only Line of Credit

need to make smaller payments initially but will be able to make larger payments later

details

Rates

Installment Loan

Fixed, 5.10 – 14.70% APR1

Line of Credit

Variable, 4.75 – 14.00% APR2

Interest-Only Line of Credit

Variable, 5.25 – 13.25% APR3

Introductory Rate

Installment Loan

None

Line of Credit

1.99% APR for 6 months4

Interest-Only Line of Credit

1.99% APR for 6 months4

Terms

Installment Loan

Up to 15 years

Line of Credit

10 year draw period

Interest-Only Line of Credit

10 year draw period

Combined Loan to Value

Maximum CLTV

Installment Loan

90%

Line of Credit

90%

Interest-Only Line of Credit

80%

Debt to Income

Maximum DTI

Installment Loan

50%, for 500k+: 55%

Line of Credit

50%, for 500k+: 55%

Interest-Only Line of Credit

50%, for 500k+: 55%

Minimum Loan Amount

Installment Loan

$10,000

Line of Credit

$10,000

Interest-Only Line of Credit

$10,000

fees & penalties

Origination Fee

Installment Loan

None

Line of Credit

None

Interest-Only Line of Credit

None

Closing Fee

Installment Loan

None

Line of Credit

None

Interest-Only Line of Credit

None

Annual Fee

Installment Loan

None

Line of Credit

None

Interest-Only Line of Credit

None

Applies to home equity loans closed within 24 months of the plan’s opening date

Early Termination Fee

Installment Loan

up to $250

Line of Credit

up to $250

Interest-Only Line of Credit

up to $250

features

Debt Protection6

Installment Loan

Available

Line of Credit

Available

Interest-Only Line of Credit

Not Available


Discount applies to automatic payments from a United Checking Account

Autopay Discount

Installment Loan

0.25%

Line of Credit

0.25%

Interest-Only Line of Credit

0.25%

Visa® Card

Installment Loan

Not Available

Line of Credit

Available

Interest-Only Line of Credit

Available

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to know

While the rate on HELOCs is variable, it is tied to the Wall Street Journal Prime Rate which is easy to track and the rate is capped. In the event of an increase in rate, the required amount for a minimum payment, 1.5% or $100 whichever is greater, will never change.

Home Equity Installment Loans by United are available on owner occupied dwellings only, primary and secondary homes. They are not eligible if the property is currently listed for sale or draws an income (as a rental or AirBnB). Our Home Equity Loans are available in every state except Hawaii, Alaska, and Texas.

common questions

A: In some situations, a home equity installment loan may meet the federal government’s definition of a “Higher Priced Mortgage Loan.” In such cases, if there is no first mortgage prior to your home equity installment loan, you will be required to establish and maintain an escrow account for payment of taxes and insurance for a minimum of 5 years. If the loan is deemed to be a High-Cost Mortgage loan, you will also be required by law to go through pre-counseling.

In instances where a HELOC application is identified as being a High-Cost Mortgage, the transaction cannot be continued as a HELOC. Instead it can be changed to a Home Equity Installment Loan or some other loan product, if viable.

A: Home equity loans and lines of credit approvals are valid for 60 days from the credit report date.

A: The amount of your loan or line of credit is determined based on the amount of equity in the house and whether the Combined Loan to Value (CLTV) is over or under 80%.

A: United offers the payment option of interest only. With a traditional HELOC, you begin paying back both principal and interest right away, month by month. With an interest-only HELOC, you pay only the monthly interest during the draw period. Once the draw period is completed, you begin to repay the principal. This can typically minimize the size of your monthly payments initially. However, the low payments on an interest-only HELOC could increase significantly once the draw period ends and the repayment for the principal begins.

These interest payments are calculated on the accumulated unpaid interest from the previous month cycle. For example: a February 25th payment would include the accumulated unpaid interest from January 1st-January 31st.