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How to get a HELOC loan in Portland, Oregon

 Tuesday, May 11    CCCU
How to get a HELOC loan in Portland, Oregon

How to get a HELOC loan in Portland, Oregon at CCCU

Do you need a little extra cash to renovate your kitchen, repair your roof, finish your basement, consolidate credit card debt, or pay medical expenses? Maybe you just want to keep a financial cushion on hand for emergencies. In any case, a HELOC might be a good solution for you. What is a HELOC, and how does it work? Keep reading to find the answers to these questions and more about how you can get a HELOC in Portland, Oregon.

What is a HELOC and where do I get the best rates in Oregon?

According to HomeAdvisor, kitchen remodels range from $13,000 to $37,000, and new roofs typically fall between $5,000 to $11,000. That’s a lot of money, which most people don’t typically have. If you have plans for a home improvement project or need funds to cover other expenses, you might consider borrowing against your home. 
HELOCs (Home Equity Lines Of Credit) are available at Portland credit unions like ours to homeowners who’ve built equity on their homes. The equity you earn is the value of your property after accounting for what you still owe on your mortgage. So, if you’ve been making on-time mortgage payments for a handful of years, you probably have some equity racked up. Additionally, Oregon HELOC rates like ours are also lower compared to other lending options.

Oregon HELOCs consider your home's value

As a homeowner, you can also acquire more equity if your home value increases. This could happen if home values go up in your area or if your Portland neighborhood turns into a seller’s market. Home improvement projects and expansions can also raise the value of your home. To make it official, you’ll have to get an appraisal, which will probably cost you $300 to $400. After your appraisal goes through, and if your property value goes up, your Portland house will hold more equity. 
So, how do you get a HELOC loan in Portland? A lot of lenders and Oregon credit unions will want you to have at least 20% equity in your home and a good credit score before agreeing to give you a HELOC in Oregon. That said, this will vary among different financial institutions, but Oregon credit unions like ours typically offer HELOCs with better rates compared to other lenders. 


How do HELOCs work and how do I get one in the Northwest?

Getting a HELOC loan in Portland tends to help some home buyers by offering money when they need it. With a HELOC, your Oregon lender will determine a limit explaining how much equity you can take out against your home. Remember, a HELOC is a type of personal loan offered by Portland credit unions like ours, but it’s a line of credit, which works very similarly to a credit card. You can continuously borrow money from the account and repay it over time, but you have to manage payments accordingly to avoid problems. You can also use a HELOC calculator to determine how much you’ll need to borrow. Overall, HELOCs are considered to be a more flexible borrowing solution compared to home equity loans. 
To access the funds, you can usually electronically transfer the amount you need directly into your checking account — whether it’s the entire sum or a little at a time. With some HELOCs, you can write a check to use the money, and some lenders offer payment cards that link to the account.
Most HELOCs in Oregon come with variable interest rates. While they tend to start relatively low, you can expect your interest to go up later on. Higher interest will increase the total amount of money you owe on the account, which you’ll have to pay back. Therefore, it’s important to have a clear idea of when your rate will change and by how much. Visit one of our Portland credit union branches to learn more about HELOC rates in Oregon. 

HELOC draw period and repayment period

Terms will vary, but most HELOCs have a draw period set to ten years. (CCCU offers 15-year draw periods for home equity lines of credit.) This means you can use the money, pay it back, and use it again as much as you want within the draw period. During a HELOCs draw period, you’ll only have to pay interest every month. However, you aren’t required to pay back the principal balance, but you can if you’d like during this time. 
When the draw period ends, you’ll enter a repayment period. Repayment periods are typically 20 years but can be longer or shorter. At that point, you won’t be able to access the credit line anymore. You’ll also have to start making monthly payments with interest. And as we mentioned, you have the option to make payments toward the principal during the draw period, but you don’t have to if your loan agreement allows it. That’s why it’s important to get a HELOC loan in Oregon with lower rates and fair terms. 

Partner with a local credit union to get the lowest HELOC rates in Portland, Oregon

So, how do you get a HELOC in Portland? Where do you get the best HELOC rates in Oregon? When it comes to mortgages, refinancing, home equity loans, and HELOCs, a credit union is the way to go. At Consolidated Community Credit Union, we support first-time homebuyers, long-time homeowners, and everyone in between with a variety of personalized lending options that get you into the home of your dreams.
Along with expert consulting for all your personal finance questions, concerns, and goals, CCCU is proud to offer some of the lowest HELOC rates in Portland, Oregon. Our home equity lending programs have no set-up fees and no annual fees, and we've designed them for members to have 15 years of easy access to their money. 
Give us a call at (800) 444-8115, or stop by one of our three branch locations to get started with a HELOC in Portland, Oregon.

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