Introducing the HELOC FlexLine: Unlock the Value of Your Home

We know when it comes to your lines of credit, you value flexibility and innovation. We do too – which is why SESLOC is excited to introduce a new Home Equity Line of Credit that puts you in control of how you use – and pay back – your loan.

The new HELOC FlexLine is built around how you want to use your home equity. Just like a classic HELOC, this new product continues to be available on members’ homes in Calfornia, which includes first homes, second homes, vacation homes and manufactured homes.¹ The money can still be used for most anything you need, from home remodeling to debt consolidation, or even paying for college tuition. And no-fee options continue to be available for lines of credit up to $250,000² with a 90% loan-to-value ratio (LTV).³

Here’s where the HELOC FlexLine shines: Anytime during the 10-year draw period, you can “lock” a portion of your balance into a fixed-rate segment. When you’re ready to stabilize payments, choose a portion of your balance ($5,000 minimum) to convert into a fixed-rate segment. Then, choose to fix the rate for 5, 7, 10, 15 or 20 year terms, not to exceed your loan maturity.⁴ You can have up to five “fixed-rate segments throughout the life of the loan, giving you the option of how and when to pay off your HELOC.

For example: If you have a HELOC with a $100,000 limit and use $20,000 to consolidate your debt, you would have two options on how to pay it down. You could either keep the balance at the variable rate. Or, you could convert part or all of the $20,000 balance to a fixed-rate segment for the available terms, resulting in consistent monthly payments on both principal and interest until it is paid off. The choice is entirely yours.

Making the choice to “lock” a portion of your balance is an easy process. Simply come to your local SESLOC branch or do it remotely via Online Banking by filling out the request form.

The HELOC FlexLine is ideal for those who want to have full control over their line of credit: How they spend it, how they manage their line of credit, and how they want to pay it off over time. This new HELOC option is affordable and gives you payment predictability with the same flexibility and convenience of a traditional HELOC.

Ready to learn how a HELOC FlexLine could help turn your plans into a reality? Check out how it works and see FAQs, or  contact our team today to find out more and learn if a HELOC Flex is right for you. Then, apply online with our quick application.

1. Eligible properties include: owner-occupied primary single-family residences, vacation or secondary homes, and manufactured homes on a permanent foundation. For information regarding terms and conditions that apply to eligible property types, consult a SESLOC loan representative.

2. Fees and Charges: SESLOC pays closing costs on lines of credit amounts of $25,000 – $250,000, with an automated property valuation and inspection. Note: If an automated property valuation and inspection is not available for the property, payment of an appraisal is required, which ranges from $620 -$1,500. For loans over $250,001, closing costs range from $2,300 – $3,300 and are based on the loan amount, lien position and property type. SESLOC membership required ($5 fee and $5 deposit).

3. Loan amount and Annual Percentage Rate (APR) based on underwriting criteria, including creditworthiness and maximum loan to value (LTV) or combined loan to value (CLTV).  LTV or CLTV of 90% available for qualified borrowers only on No Fee HELOC²option on credit amount of $25,000 up to $250,000.

4. HELOC Flexline: Includes an option to fix the rate on a portion or segment of the outstanding variable rate balance. This may be requested up to five (5) times during the draw period of the account. The minimum requested amount for a fixed rate segment is $5,000. The terms, including the APR and minimum monthly payment on the requested segment, will be fixed until paid off. APR and terms for a fixed rate segment are determined by creditworthiness and CLTV (combined loan to value).. Term options include 60 months (5 years), 84 months (7 years), 120 months (10 years), 180 months (15 years) and 240 months (20 years), not to exceed the maturity date of the loan.

NOTE

APR (Annual Percentage Rate) is a variable rate indexed to the Wall Street Journal Prime rate. Your rate may increase or decrease during the loan term based on corresponding changes in the Prime Rate. APR is based on creditworthiness and CLTV (combined loan to value). Actual APR will be discussed at the time of application. The floor APR is 4%; your APR will never exceed 18%. Your minimum monthly payment during the 10-year draw period will equal the finance charges (interest) that accrued on the outstanding balance during the preceding month. Your minimum monthly payment during the repayment period (never exceed 20 years) will be set to repay the outstanding balance, at the prevailing annual percentage rate, within the repayment period. Your payment will change if the annual percentage rate increases or decreases. Your payment will never be less than the smaller of $50, or the full amount that you owe.

No prepayment penalties. Upon property title transfer (e.g. property is sold), the entire outstanding balance is due, which may result in a balloon payment. Property insurance is required. We will take a security interest in your home, and you could lose your home if you fail to meet the obligations of your loan agreement. Interest and charges may be tax deductible. Please consult a tax professional about your specific situation.