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Fact Is, Home Equity Lines Can Be A Smart Way to Borrow

If you own a home, chances are you’ve heard about home equity lines of credit or HELOCs as they’re sometimes called. You probably know that they let you use the equity you’ve built up in your home to pay for home improvements and other life expenses.

But there’s actually a lot more to know about home equity lines of credit – like that they can be powerful tools that can help you reach your financial goals and manage unexpected expenses.


Let’s look at some facts about HELOCs. You can use this information to decide if one is right for you.

  • FACT: Home equity lines can help you manage a variety of goals and expenses.

You can use a HELOC to finance –


–           Home Improvements

–           College costs

–           Debt consolidation

–           Medical bills

–           Business startup or expenses

–           Retirement planning


  • FACT: You only pay interest on the amount of your line you use.

A home equity line is a revolving line of credit. You only pay interest on the amount you borrow and can draw from your line and repay funds over and again. That’s why some people use HELOCs as a safety net to help manage unexpected expenses.


  • FACT: During the draw period, Avidia’s draw period is the first 10 years of your home equity line, you only have to make interest-only payments.

After the draw period, your line will convert to a loan and you must begin paying back the principal (along with interest) in monthly installments. FUN FACT: You can pay down the principal at any time during the draw period without penalty. Yes, you get to decide how much you want to pay as long as you make the minimum interest payment during the draw period. You can be as aggressive as you want in making principal payments, which will help lower your interest costs. Plus, unlike with a first mortgage, you can draw against the line if you need to in the future.


  • FACT: Home equity lines can be a better option than refinancing a first mortgage.

If you have a first mortgage with a low interest rate, you may not want to refinance your loan to get cash out to make home improvements or pay for other expenses. With a HELOC, which is a second mortgage, you can keep your lower-rate first mortgage where it is and take advantage of an affordable and convenient way to get the cash you need.


  • FACT: It’s a good idea to speak with your financial advisor to learn how a HELOC may be helpful in your overall financial plan.

A HELOC can help you manage unexpected expenses without having to draw on your investments and have to deal with tax consequences.


FACT: Avidia Bank has a great offer on a home equity line!  

You can get a variable rate as low as the Prime Rate – ½.* Learn more about our home equity line offer (link to page).


Ready to discuss if a HELOC is right for you?

Give us a call at 1-800-508-2265 or stop by your nearest branch. We’d love to see you.


Member FDIC  l  Member DIF   l   Equal Housing Lender  l  NMLS# 422902




*NOTE:  Prime – ½ is for 80% or less CLTV but there is a rate of Prime + 1.5 for CLTV 81% to 90%. Current Prime Rate is 8.50% as published in the Wall Street Journal as of April 9th, 2024.