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Home Equity Line of Credit

HOME EQUITY LINE OF CREDIT

Choosing a HELOC from Mission Fed

You’ve invested a lot to build your home’s equity. Now let your home invest in you, with a home equity line of credit — also known as a HELOC — for your next major project or big purchase. 

With a HELOC, you use money when you need it, then pay whatever you’ve borrowed back with interest. A HELOC enables you to use more of your equity once you repay the amount you’ve borrowed. 

Mission Fed’s HELOC gives you the flexibility to access funds for large expenses, now and in the future. With our competitive HELOC rates, you can access funds on an as-needed basis up to a credit limit determined at closing, making it convenient and easy to get what you need, when you need it. 

Competitive Rates with Local, San Diego Service

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Loan Rate Fees APR as low as
HELOC: Introductory Rate 7.99% $0 7.99%
HELOC: Interest Only 10.25% $0 10.25%

All rates and APRs are for illustrative purposes only. Subject to change without notice. Advertised as low as APRs are based on assumptions. Not all applicants will qualify for the lowest rate/APR. Actual rate will vary depending on your creditworthiness, loan amount, LTV, and other factors specific to your transaction. Other rates and terms may be available.

Mortgage:
For current rates and payment examples, please refer to our Daily Mortgage Rates page. Monthly payments do not include property taxes or insurance, your payment will be higher. APRs assume the purchase of a single family, primary residence in California, a credit score of at least 740, and a combined LTV of 60% or less. For borrowers with less than a 20% down payment, mortgage insurance is required. Maximum loan amounts range from $647,200 to $3,000,000, depending on loan program.

30 Year Fixed (Conforming/Jumbo): Fixed monthly principal and interest payments for life of the loan.

5/5 Adjustable-Rate Mortgage (ARM): Variable rate loan, interest and payments may increase after consummation. For the first 5 years, rate is fixed. After that, rate will adjust according to the current index plus a margin of 2% every 5 years for the life of the loan.

3/1 Adjustable-Rate Mortgage (ARM): Variable rate loan, interest and payments may increase after consummation. For the first 3 years, rate is fixed. After that, rate will annually adjust according to the current index plus a margin of 2% for the life of the loan.

Fixed Rate 2 nd TD 10 Year/ 15 Year: Fixed monthly principal and interest payments for life of the loan.

Home Equity Loans/Lines of Credit:
APRs assume a minimum credit score of at least 720, and a combined LTV (CLTV) of less than 90% for a home equity loan and a combined LTV of less than 70% for a HELOC.

Introductory HELOC: 25-year term (10 year draw, 15 year repayment). Fixed intro rate for the first 12 months. After that, rate is variable and may adjust monthly after account opening. Maximum credit line of $300,000. Floor rate is 3.99%. Maximum APR is 18.00%.

Interest Only HELOC: Variable rate product, interest and payments may increase after consummation. Interest only payments for first 10 years, fully amortized principal and interest payments for the remaining term. Maximum credit line of $300,000. Floor rate is 3.99%. Maximum APR is 18.00%.

Mission Fed HELOC Options

  • Use it for 10 years, with an additional 15 years to repay the loan
  • Fixed HELOC rate for the first 12 months; variable rate for the rest of the term*
  • Borrow up to 100% of the equity in your home
  • Only pay interest on the money you use from your HELOC

Want to learn more? Our home loan experts can help. Make an appointment at your nearest Mission Fed neighborhood branch to get started. 

Make an Appointment

Additional benefits of a Mission Fed HELOC:

  • No points: Get a low rate with no additional fee.
  • Borrow up to 100% of the equity in your home.
  • Only pay interest on the money you use with our regular HELOC.
  • Interest-Only HELOC option, which allows you to pay only interest for a 10 years before starting to pay principal.
  • Access your HELOC with checks or a HELOC Platinum Card. Your HELOC Platinum Card can be used for online purchases or at the store, tap-to-pay when your card has the contactless symbol
  • 24-hour access to your HELOC funds
    • Online Banking and Mobile Banking
    • By phone with our automated phone service
    • With your Mission Fed Home Equity Card issued with your loan (use wherever Mastercard® is accepted)
    • Write your Mission Fed Equity checks issued with your loan
    • Visit any San Diego Mission Fed Branch during business hours
    • Please contact your Mission Fed Real Estate Loan Representative for more details about the specific benefits.

FAQs

What is a HELOC?

HELOC stands for Home Equity Line of Credit, which is a line of credit you can take out on the equity you’ve built in your home. Essentially, a HELOC is a second mortgage, allowing you to borrow against the value of equity you currently have in your primary residence.

How does a HELOC work?

With a home equity line of credit, you can borrow up to a certain amount, repay the money you owe and then repeat as needed, allowing you to borrow only as much as you need, as you need it.

How do I get a HELOC with Mission Fed?

You can apply for a HELOC loan in the same way that you apply for a mortgage loan. Your approval is based on your credit score, credit history, the amount of equity you currently have in your home and your debt-to-income ratio (also called your DTI). At Mission Fed, you can apply for our Credit Union HELOC online or in person with one of our knowledgeable representatives. Mission Fed offers low HELOC rates in California.

How much equity do I need for a HELOC?

Most lenders require that you have at least 15 to 20 percent of your home’s appraised value in equity before approving a home equity line of credit. However, that percentage can vary depending on your credit history, credit score and debt-to-income ratio. If you want to get a HELOC, make sure you maintain positive credit habits.

Can I calculate a HELOC payment?

Calculating a HELOC payment ahead of time can be tricky because, in most cases, your interest rate will be variable after a set period of time with a fixed rate. In order to calculate your home equity line of credit payment, you’ll need to understand your HELOC rates, when the rate becomes variable and whether you will have an opportunity to only pay your interest payments during a certain period of time. You should also know how long the life of your line of credit will be, as well as the ceiling (the maximum interest rate you can be charged) and the floor (the lowest your HELOC rates will ever go). Though you can’t anticipate exactly what will happen with the market, and therefore your HELOC rates, you can approximate what your highest and lowest monthly payment will be over the life of your loan.

How much can I borrow on a HELOC?

The maximum loan amount you’ll be allowed to borrow on your home equity line of credit depends on your credit score, credit history and debt-to-income ratio. Your financial institution wants assurance that you will pay them back in a timely manner. From there, the amount you’re able to borrow is dependent on the amount of equity you have in your home as well as the value at which your home was appraised. This is called your combined loan-to-value ratio. Depending on your credit history, your debt-to-income ratio and your combined loan-to-value ratio, you may be able to borrow the maximum amount or loan amount up to 100 percent of the value of your home.

Want to learn more?

Our home loan experts can help. Make an appointment at your nearest Mission Fed neighborhood branch to get started.
Make an Appointment

Disclosures

Must meet membership and account criteria. All loans and loan programs are subject to approval. Rates and terms will vary based on credit, collateral, and LTV. Property must be owner-occupied. Property insurance is required. If HELOC is closed within three (3) years from the op

Must meet membership and account criteria. All loans and loan programs are subject to approval. Rates and terms will vary based on credit, collateral, and LTV. Property must be owner-occupied. Property insurance is required. If HELOC is closed within three (3) years from the open date, you must repay any 3rd party fees that were paid on your behalf. Other terms and conditions apply. Programs, rates, terms, conditions, and services are subject to change without notice.

*APRs assume a minimum credit score of at least 720, and a combined LTV (CLTV) of less than 90% for a home equity loan and a combined LTV of less than 70% for a HELOC.

 

Introductory HELOC: 25-year term (10 year draw, 15 year repayment). Fixed intro rate for the first 12 months.  After that, rate is variable and may adjust monthly after account opening. Maximum credit line of $300,000.  Floor rate is 3.99%. Maximum APR is 18.00%.

 

Interest Only HELOC:  Variable rate product, interest and payments may increase after consummation. Interest only payments for first 10 years, fully amortized principal and interest payments for the remaining term. Maximum credit line of $300,000. Floor rate is 3.99%. Maximum APR is 18.00%.

en date, you must repay any 3rd party fees that were paid on your behalf. Other terms and conditions apply. Programs, rates, terms, conditions, and services are subject to change without notice.

Introductory HELOC: Intro APR as low as 5.99% for the first 12 months. After that, APR will vary based on the Wall Street Journal Prime plus a margin.