Features & Benefits

O Bee’s Home Equity Line of Credit (HELOC) is flexible enough to adapt to your every need. Whether you have one big purchase in mind or just appreciate the flexibility of having cash available, a line of credit is the smart way to take advantage of the equity you have in your home. Enjoy a low competitive variable rate, based on the Prime Rate. Rates are subject to change quarterly as the Prime Rate changes. (The Prime Rate is published daily in The Wall Street Journal-Western Edition.)

25 Year Repayment

O Bee Credit Union’s Home Equity Line of Credit features a 10-year Draw period and up to a 15-year Repayment period after that.

Draw Period: The draw period is the amount of time you may withdraw funds. During the draw period, you are only required to make monthly interest payments on the amount you have withdrawn. For example, if you were approved for $30,000 but only withdrew $5,000 of that. You would pay interest on the $5,000 only. Balances of less than $35 must be paid in full.

Repay Period: Assuming you do not wish to extend the draw period at the end of 10 years, the balance will automatically re-amortize and you will enter the repayment period for up to 15 years. You will be notified of a new monthly payment at this time. See Our Rates Here

No Restriction on Advances

There are no restrictions on advances with your established credit limit. You decide when, where, how, and how much.

Variable Rate Feature

The interest rate will remain fixed for one year after the first draw. Thereafter, the Annual Percentage Rate (APR) can change quarterly on the first of January, April, July and October. The maximum Annual Percentage Rate that can apply during the Plan is 18.00% or the maximum rate allowed by applicable law, whichever is less. The Annual Percentage Rate cannot increase by more than two percentage points during any one year period. The Annual Percentage Rate will never be less than 3.00%.

“Lock In” Option

During the draw period of your Home Equity Line of Credit, you may “lock in” all or a portion of the outstanding balance to a “lock with a fixed interest rate and payment amount”. The minimum amount required for locking is $5,000 and the maximum term will not exceed 15 years. When you elect to lock in a portion of your outstanding balance, the available balance on your HELOC (Home Equity Line of Credit) loan will decrease accordingly. Those portions “locked in” will receive a separate loan suffix and will require a separate monthly principal and interest payment. There is no limit to the number of times you can choose the “lock in” feature.

Card Option

Want to keep your expenses separate and have easy access to your Home Equity Line of Credit? Ask our representatives about our card option.

FAQ

What's the difference between a HELOC and a home equity loan?

A HELOC is a revolving line of credit — you borrow what you need, when you need it, up to your limit. A home equity loan is a one-time lump sum with a fixed rate and a set repayment schedule. HELOCs tend to suit homeowners with ongoing or phased expenses; home equity loans work well for a single known cost. 

How much can I borrow with an O Bee HELOC?

Your credit limit depends on multiple items such as your home's value, how much you still owe on your mortgage, your credit score, and your debt-to-income ratio. We can walk you through the math when you apply — or give us a call and we'll give you a quick estimate.

Do I have to use the full line once I'm approved?

No. You only draw what you need, and you only pay interest on what you draw. Your limit is available if and when you need it.

What happens when the draw period ends?

After 10 years, you enter the repayment period — up to 15 years to pay off the remaining balance. O Bee will notify you of your new monthly payment when that transition happens.

Can I lock in a fixed rate on my HELOC?

Yes. During the draw period, you can lock in all or part of your outstanding balance at a fixed rate. The minimum lock amount is $5,000, and you can use the lock feature as many times as you want.

Is the interest on a HELOC tax-deductible?

It may be, if the funds are used for home improvements. Tax laws change and everyone's situation is different — your tax advisor can give you a definitive answer. 

How do I apply?

You can apply online in about 10 minutes, stop by any O Bee branch (see locations), or give us a call at 800.642.4014.