Put Your Home
Equity To Work

Put Your Home Equity To Work

With a HELOC at a great rate.1

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Today's Rates
All rates shown are Annual Percentage Rate (APR).*

What is a Home Equity Line of Credit?

As the demand for housing increases, the value of your home continues to rise. You can use the value, or equity in your home to apply for a home equity line of credit (HELOC). A HELOC gives you access to funds that can be used to repair or renovate your home - increasing your property's value.

You can also use a HELOC to fund a vacation or college education, or even simplify your finances by consolidating debt.

Learn more about how to put your home equity to work for you.

Calculate Your HELOC

The amount of equity available for your home equity line of credit is determined by your home's loan-to-value ratio. This ratio is calculated by simply taking the total mortgage debt (including any second mortgages or existing home equity loans) and dividing it by the current, appraised value of your home. Use the calculator to estimate just how much home equity you have available.

Turn your home equity into new possibilities:

  • Renovate your house into the home of your dreams.
  • Make necessary home repairs and upgrades.
  • Cover college tuition costs.
  • Fund life's big moments, such as a wedding or family vacation.
  • Pay off high-interest debt, such as credit cards and medical bills.

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Ready to put your home equity to work?

Apply online today or call and speak to a Consumer Lending Specialist about simplifying your finances.

CALL 800-525-9623, Option 3

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HELOC Application Process:


  1. Apply online or speak with one of our Consumer Lending Specialists at 800-525-9623.
  2. Discuss the best terms for you with our Lending Sales Team.
  3. Finalize loan details and submit required documentation.
  4. Sign your loan documents to make it official.
  5. Access your funds.
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Learn more about Home Equity Lines of Credit

Home Equity Line of Credit FAQ's

Once you get approved for a HELOC, you will need to choose how to receive your funds. This selection will kick off the draw period, so you can start making withdrawals and using these funds however you like. HELOCs tend to be less restrictive than home equity loans regarding how you spend your money. However, you may qualify for tax breaks if you use these funds on your home.  

A home equity line of credit (HELOC) is a second mortgage that uses the equity in your home as collateral. If you have been making regular mortgage payments for several years or more, you should have built up equity in your home, which is the difference between your home’s value and the remaining balance on your mortgage.  

Home equity is calculated as a percentage. If your home is worth $200,000 and you still owe $100,000 on your mortgage, 100,000 divided by 200,000 equals 0.5 or 50%. In other words, you have paid off 50% of your mortgage and have $100,000 in home equity.  

You can use the Ent HELOC Calculator to see how much equity you have built up in your home.  

Once you have home equity, you can apply for a HELOC or home equity loan at a financial institution, such as a bank or credit union. The lender will then give you access to a lump sum or line of credit based on how much equity you have accumulated. You can then use this money to repair your home to increase the property value. You will need to pay back this loan over time plus interest. If you fall behind on your payments or cannot repay the principal amount, the lender reserves the right to repossess your home as collateral.  

HELOCs tend to have low-interest rates, usually close to those of mortgage loans, which means you will pay less over the life of the loan compared to unsecured loans like credit cards. The loan is secured by the equity you have built up in your home, so the lender has a way to recoup their investment should you default on the loan. However, you need to make sure you can repay the loan on time to avoid losing your home. 

Yes, technically, a HELOC is considered a second mortgage. You will need to repay the loan in addition to your existing mortgage. 

HELOCs give you access to a revolving source of funds. The lender will let you borrow up to a certain percentage of your home equity. HELOCs usually come with adjustable interest rates that change over time. However, some lenders offer lines of credit with fixed interest rates for specific periods. Generally, the longer the fixed-rate applies, the higher the interest rate. 

Once you get approved for a HELOC, you can choose how you receive these funds, such as getting a check in the mail or an online transfer. HELOCs come in two phases. 

The first phase is known as the draw period, which usually lasts ten years. During this time, you can withdraw funds using your preferred method and use them however you like. Most lenders only ask that you pay off any interest you have accrued during the draw period, but you are usually free to pay more than the required amount every month.  

Once the draw period ends, you can no longer access additional funds from the account and will need to start making regular monthly payments plus interest until the principal amount has been paid off. By the end of the repayment period, you will need to pay back the entire principal amount of the loan plus any interest that accrued at the agreed-upon rate. This step is known as the repayment period. 

Some lenders also require a minimum draw amount, so you may need to withdraw additional funds at the end of the draw period to satisfy these requirements. 

You may be able to apply for an extension to the draw period if you need more time to use the funds or aren't ready to start making regular monthly payments. However, extending the draw period only increases the amount of interest you will pay over the life of the loan. Consider making regular monthly payments to pay off the principal amount as fast as possible during the draw period. The quicker you pay off your debt, the more you will save on interest over time.  

Some lenders will give you several different repayment options, which can last anywhere from 10 to 20 years or more. Again, the longer the life of the loan, the more you will pay in interest.  

Your monthly payments will likely more than double during the repayment period. Consider the following example to get a sense of how these periods will affect your finances. Let's say you borrow $50,000 with an annual percentage rate (APR) of 5%; you would only have to pay around $208 a month during the draw period when only interest payments are required. Your monthly payment will increase to about $416 per month when the draw period ends. You'll need to budget for these monthly payments accordingly to make sure you don't fall behind. 

You can apply for a HELOC at a local financial institution. Smaller lenders like credit unions tend to offer lower fees on $100,000 or less loans than large banks and lenders. It’s best to shop around and compare different rates before choosing a lender.  

To apply, you will need to submit the proper financial information, including a copy of your mortgage, tax returns, proof of income such as pay stubs and a credit check. Some lenders may also need to appraise your home to get a real sense of its current value. To qualify, you will also need to show that you have a history of paying your mortgage bills on time.  

Most lenders ask that you have at least 15% to 20% home equity, which means you have paid off at least 15% to 20% of your mortgage. 

The lender will assign you an interest rate based on your financial standing and how much equity you have in your home. The more equity you have, the lower your interest rate.  

You can only borrow up to 85% of your home equity or the combined loan-to-value ratio. For example, if you have $50,000 in home equity, you can only borrow $42,500.  

You can use your home equity to apply for either a HELOC or home equity loan, both of which will give you access to funds that you can use to repair your home. 

But there are other ways to tap into your home equity. You can also apply for a cash-out refinance, which means replacing your current mortgage with a new loan for a higher amount. You can then pocket the extra money that comes with this loan and use it however you want. 

Regardless of what type of loan you choose, you can use home equity to: 

  • Make repairs on your home. 
  • Pay off high-interest debt, like credit card and medical debt. 
  • Pay for a wedding or special event. 
  • Go back to school. 
  • Buy a new home. 

You can also use home equity to save for your next home. If you have built equity in your home and plan to sell it, you can use the profits from the sale to pay off your mortgage and then pocket the remaining amount. Put this money towards closing costs and real estate fees on your next home.  

There are lots of factors to consider when taking out a HELOC. The COVID-19 pandemic has supercharged the housing market in many ways. Buyers face stiff competition when bidding on the few houses for sale.  

If you are thinking of buying a new home, you might be better off waiting until the market cools off. Consider using a HELOC to increase the value of your current property. You will be in a better position to sell your home several years down the line.  

Taking on another mortgage or loan will only put added pressure on your finances. There's always a risk you could lose your job or the ability to work, which could leave you further in debt. You will need to make sure you can make regular payments to avoid losing your home. 

If the housing market takes a dip and your home loses value over time, there’s also a risk of going “underwater” on your mortgage, which is when you owe more than what your home is worth. 

If you have trouble making ends meet and are looking for a loan to hold you over until your situation improves, a HELOC may be the best option. You can use this money as needed without making regular monthly payments during the draw period. However, you will need to find a way to increase your income before the repayment period begins. 


1APR=Annual Percentage Rate. 

2Your actual rate, payment and costs could be higher. Get an official estimate before choosing a loan. Examples are provided for estimation purposes only.

Closing costs apply. Payment examples are calculated based on the WSJ Prime Rate as of 6/16/2022 and an internal margin. Standard account and credit qualifications apply. Loan subject to final credit approval and may require verification of income. Financing available on homes throughout Colorado. Property insurance is required. Consult a tax advisor for further information regarding the deductibility of interest and charges.