Loans

What is a HELOC, and how does it work?

A HELOC (Home Equity Line of Credit) is a flexible line of credit that lets you borrow money using the equity in your home — that’s the difference between your home’s value and what you still owe on your mortgage. Think of it like a credit card (but better!), tied to your home: you can borrow, repay, and borrow again as needed, up to a set limit. It's perfect for home improvements, emergencies, or even paying down high-interest debt.

What are the perks of getting a HELOC with BOND?

• Borrow up to 80% of the equity in your home
• No annual fees
• Only pay interest on what you actually borrow
• No prepayment penalties — pay us back anytime!

What are the basic requirements?

• Your home must be your primary residence
• The maximum amount you can borrow is 80% of your home’s appraised value minus your existing mortgage balance
• A credit check and appraisal are required
• Flood insurance may be needed, depending on your property location.

Will BOND charge an application fee?

Yes. There is a fee, which covers the application fee, credit report, title fee, flood certification, and deed recording.

Are there any out-of-pocket costs from the applicant?

Yes. You’ll be responsible for paying the property appraisal fee directly to the appraiser when they come to your home. This fee is typically between $400 and $1,500 depending on your property type and location. This cost is separate from the application fee and is paid at the time of inspection.

How long do I have to borrow and repay?

You’ll have a 6-year draw period (that’s 72 months) when you can borrow and repay freely.
After that, there’s an 8-year repayment period (96 months) to pay off your balance.

Do I have to make monthly payments during the draw period?

Yes. You’ll make monthly payments that include both principal and interest starting 30 days after the HELOC is booked. Your monthly payment is calculated based on your loan amount and remaining term, and will always be at least $100 or your full balance, whichever is less. You can always pay more than the minimum or pay off the full amount at any time with no penalty.

Does BOND offer an interest-only payment option during the draw period?

No. BOND Community FCU does not offer interest-only payments. During the draw period, your monthly payments will include both principal and interest. This helps you start paying down your balance right away.

What kind of interest rate will I get?

The HELOC has a variable interest rate, which means it can change over time. Here’s how it works:

• Index: Prime Rate
• Margin: The margin is a fixed percentage that we add to the index (the Prime Rate) to determine your interest rate.
  This margin is determined based on several factors, including your credit score and overall credit risk.
  Think of it like this:
  Your interest rate = Index (Prime Rate) + Margin
  For example:
  If the Prime Rate is 7.50% and the margin is 0.49%, your interest rate would be 7.99% APR.
  The margin stays the same for the life of the line of credit — only the index (Prime Rate) can change.
• Floor: Your rate won’t drop below 0.50% less than your starting rate
• Cap: Your rate won’t increase more than 6% above your starting rate, and it will never exceed 18% APR.

How often can my rate change?

Your HELOC rate can adjust once every quarter (every three months). If it changes, it can go up by no more than 2% at a time. Your rate will never drop more than 0.50% below your starting rate.

Do I need to provide Homeowner’s Insurance?

Yes — this is required. You must keep an active Homeowner’s Insurance policy on your property for the entire life of your HELOC, until the balance is fully paid and the line is closed. In addition, BOND Community FCU must be listed as a lienholder on your policy — either as the primary or secondary lienholder, depending on whether you have a first mortgage. You’ll sign documentation acknowledging and agreeing to this requirement during the closing process.

Can I use the HELOC for anything I want?

Yes! Most members use their HELOCs for home improvements, debt consolidation, education expenses, medical bills, or unexpected emergencies. The funds are flexible to fit your needs.

Will applying for a HELOC hurt my credit?

Just like any loan application, we’ll need to run a credit check. Applying may cause a small dip in your score temporarily, but responsible use of your HELOC could actually help improve your credit over time.

Is there a prepayment penalty?

Nope! You can pay back your HELOC early, in part or in full, without any fees or penalties.

What information and documents would I need to provide to apply for a BOND HELOC?

1. Complete the electronic application: Click here to apply

• You can fill this out on your phone, computer, or tablet.
• No online banking login is required.
• Scroll down to find the form.

And, please email the following documents to lending@bondcu.com:

2. Income Verification

• Your last three personal bank statements (PDF) showing your and your co-applicant’s income.
• Pay stubs for the last three months (for both you and your co-applicant).

3. Tax Documents

• Last two years of tax returns (for both you and your co-applicant).
• Last W-2 or 1099 form (for both you and your co-applicant).

4. Property Information

• Proof of last property tax payment (Form 1098 or property tax bill).
• Declarations page for your current homeowner’s insurance.
• Your last mortgage statement.
• Please confirm if the home is in your name only. If not, provide the name(s) of all co-owners.

Still have questions?

We’re here to help. Call us at 404-525-0619 ext. 217, email us at lending@bondcu.com, or visit our branch, and we’ll walk you through the process step-by-step.