Here are some frequently asked questions (FAQs) about the HELOC FlexLine.
Be sure to see the HELOC FlexLine complete terms, conditions, restrictions and eligibility, which is posted on our HELOC FlexLine webpage, or is available at any branch office.
What is HELOC FlexLine and how is it different from a traditional HELOC?
HELOC FlexLine is a new Home Equity Line of Credit option which allows members to fix a portion, known as a segment, of their outstanding line of credit for a defined term with one fixed rate. This option provides greater payment predictability and interest rate protection while maintaining the flexibility of a revolving line of credit.
How much can I borrow?
Members can apply for lines of credit from $25,000–$400,000.
What can I use the HELOC FlexLine for?
Any personal, family, or household purpose — home remodeling, debt consolidation, vacations, and more. Business purposes are not permitted.
Who is eligible for a HELOC FlexLine?
SESLOC members with first homes, second homes, vacation homes, and manufactured homes. Borrowers can take up to 90% Loan-to-Value (LTV) on lines up to $250,000.
Can I get a HELOC FlexLine on a second home, vacation home, or manufactured home?
Yes. HELOC FlexLine is available on first homes, second homes, vacation homes, and manufactured homes affixed to a permanent foundation. Manufactured homes on leased land are not eligible.
How do I apply for a HELOC FlexLine?
If you are a SESLOC member or are eligible for membership, you can apply online at sesloc.org or visit any SESLOC branch. To see what documents you’ll need when applying for the HELOC FlexLine, click here.
What is the HELOC FlexLine rate?
HELOC FlexLine rate is Prime Rate + a margin. Current rates are posted on sesloc.org and on Online Banking.
How much does it cost to lock in a rate on a fixed rate segment?
There is no fee to request a fixed-rate segment on a HELOC FlexLine at SESLOC.
Is there a lifetime rate cap on the variable portion?
Yes. SESLOC’s HELOC FlexLine has a lifetime rate cap of 18% APR on the variable-rate portion. Fixed-rate segments are unaffected by this cap as their rate is already locked in.
Is the interest on my HELOC FlexLine tax deductible?
In many cases, yes — interest on a home equity line of credit may be tax deductible when the funds are used to buy, build, or substantially improve the home securing the loan. However, tax situations vary. We recommend consulting a qualified tax advisor to determine deductibility based on your specific circumstances.
Can I lock in a fixed rate on my balance?
Yes. At any time during the 10-year draw period, you may convert a portion of your outstanding balance into a fixed-rate segment. You may have up to five fixed-rate segments at any time during the 10-year draw, with a $5,000 minimum balance per segment. A maximum of five segments may be established during the 10-year draw period.
What's the difference between a fixed-rate segment and keeping my balance variable?
Fixed-rate segments require monthly principal and interest payments and lock in a specific rate for a set term. Variable-rate portions adjust based on changes to the Prime Rate, and your monthly payment is interest-only during the draw period.
What term options do I have when locking in a rate?
Fixed-rate segments can be amortized in increments of 5, 7, 10, 15, or 20 years, not to exceed the maturity date of the loan.
Can the terms be different if I choose to convert another fixed rate segment?
Yes. You can select any of the terms offered of 5, 7, 10, 15, or 20 years, not to exceed the loan maturity.
If rates drop after I lock a segment, can I switch back to variable?
No. A fixed-rate segment cannot be unlocked or changed once set.
What will the rate of my fixed rate segment be?
The rate for a fixed rate segment will be determined on the date you submit your request to convert a portion of your outstanding HELOC variable rate balance into a fixed rate segment.
How do I request a fixed-rate segment?
Complete the HELOC Fixed Rate Segment Request form in Online Banking or in branch. Allow up to 3 days for processing. The rate is locked on the day you submit your request.
Can I request more than one fixed-rate segment?
Yes. You may have up to five fixed-rate segments outstanding at any time during the 10-year draw, with a $5,000 minimum per segment. A maximum of five segments may be established during the 10-year draw period.
How long is the draw period and repayment period?
HELOC FlexLine has a 10-year draw period followed by a 20-year repayment period — 5 years longer than HELOC Classic’s 15-year repayment period.
What are the payment terms during the draw period?
Variable-rate portions require interest-only payments. Fixed-rate segments require principal and interest payments. After the draw period ends, all outstanding balances require principal and interest payments.
Will my payment change if I lock in a rate?
Your payment portion for a fixed rate segment becomes a fixed principal & interest payment based on the locked rate and term selected. It will not fluctuate with Prime Rate like the variable rate line of credit portion does.
What happens after the draw period ends?
The loan converts to a repayment phase with principal and interest payments on all outstanding balances. You can no longer draw new funds from the line.
Can I pay off a Fixed Rate Segment at any time? Is there a penalty or fee?
Yes. You can pay off a Fixed Rate Segment at any time. There are no penalties or fees for paying off your Fixed Rate Segment early.
Can I still access my line of credit after locking in a portion?
Yes. If you lock $20,000 of a $100,000 line, you will still have $80,000 available for you to access.
As I pay down a fixed-rate segment, does that credit become available to me again?
Yes. Similar to a credit card or other line of credit, as you pay down a fixed-rate segment, more credit becomes available for you to use up to your approved credit limit.
Can I convert my existing traditional HELOC to HELOC FlexLine?
Yes. If you have a traditional HELOC, you can apply for a refinance to convert to HELOC FlexLine upon request.
If I have a traditional HELOC — where do I find my current rate?
You can access their current rate on your loan billing statement or in online banking.
Are there any annual, maintenance, or hidden fees?
No. SESLOC HELOCs do not have annual or maintenance fees. There are also no inactivity fees, no check fees, and no prepayment penalties. SESLOC pays closing costs on lines of credit amounts of $25,000 – $250,000, with an automated property valuation and inspection.