Home Equity Line of Credit – Summit Credit Union

Approved once, available for ten years

The two halves of a line of credit

For the first ten years, the draw period, the line behaves like a very cheap credit card secured by your house. You borrow by writing a line check or moving money in the app, you can repay and re-borrow as often as you want, and the required minimum payment is interest only. On a $50,000 balance at 6.625% that minimum is $276.04 a month.

Then the draw period ends. The line closes to new advances and whatever you owe amortises over the following fifteen years. That same $50,000 balance goes from $276.04 to $439.00 a month, and it happens in a single statement cycle. Nothing about it is hidden, but it surprises people who only ever paid the minimum, so we put the number in front of you now rather than in year eleven.

The practical answer is to pay principal during the draw period even though nobody requires it. Members who add $200 or $300 a month to the minimum reach the handoff with a balance they can absorb. If you would rather not manage that discipline, a fixed-rate personal loan or a fixed-rate segment inside the line does the work for you.

Rates and terms

Pricing by combined loan-to-value

Add your first mortgage balance to the new line, then divide by the appraised value.

Tier or term Rate or figure Detail

Up to 70% combined LTV 6.625% APR Lines up to $250,000

70.01% to 80% 6.875% APR Lines up to $200,000

80.01% to 89.99% 7.625% APR Lines up to $100,000

Draw period 10 years Interest-only minimum payment

Repayment period 15 years Principal and interest, no further advances

Minimum advance $500 Line check, branch transfer or mobile app

Annual fee $0 An open line at zero balance costs nothing

Closing costs Paid by Summit Recovered if the line closes within 24 months

Rate structure Variable, indexed to prime Adjusts the first of the month after an index change

Lifetime rate cap 15.00% APR Disclosed and fixed at closing

Property types Owner-occupied primary Single family, townhome or approved condo

Rates current as of July 2026 and subject to change. Rate shown is the lowest available and depends on credit history and combined loan-to-value. Equal Housing Opportunity Lender. Membership eligibility required. This is a demonstration website; rates, products, and figures shown are illustrative only.

Today's rates → Payment calculator → Disclosures →

Fit

When the line is the right tool, and when it is not

The rate is low because your house is the collateral. That cuts both ways.

Projects with a moving price A kitchen quoted at $45,000 seldom finishes at $45,000. Draw as the invoices arrive rather than borrowing a lump sum and paying interest on money that sits in checking.

A backstop you hope never to use Open the line while your income and equity are strong and leave it at zero. It costs nothing to carry, and a failed heat pump in January stops being a 22% credit card problem.

Buying before you sell A line covers the down payment on the next house and gets cleared in full when the old one settles. Tell your loan officer the plan so the payoff is timed to the closing.

Not for consumables A holiday or a wedding is spent in a week and secured against your home for fifteen years. If the thing you are buying has no lasting value, the collateral is doing you no favours.

Not for cards you will run back up Moving $18,000 of revolving debt onto the house only works if the cards go into a drawer. Otherwise you end up with the old balances back plus a lien you did not have before.

Not for a shortfall in income A variable rate layered on an unstable budget makes both problems worse. Call 800.555.7846 first; we would rather talk through options than watch a line get drawn down to nothing.

You can fix part of the balance without giving up the flexible part

Members can convert up to three portions of an outstanding balance into fixed-rate segments with terms of five to fifteen years, and keep drawing on whatever room is left. It is how most people handle a big one-off project inside a line they still want available for the next surprise.

Common questions

Home equity, answered

How much equity do I need?

Enough to keep the combined loan-to-value under 90%. On a home appraised at $400,000 with a $220,000 first mortgage, you are at 55% before the line, and a $60,000 line takes you to 70% — the best pricing tier.

Will you order an appraisal?

Not always. Many properties qualify for an automated valuation, which removes both the cost and about a week from the timeline. If the automated value comes back low or the property is unusual, we order a full appraisal.

How long does approval take?

Ten to fifteen business days is typical, faster when no appraisal is needed. Federal law also gives you a three-day right to cancel after closing, so the line is not usable until that window passes.

Can Summit reduce or freeze my line later?

Only in narrow circumstances the agreement spells out, such as a significant decline in property value or a material change in your finances. It is uncommon, and you would receive written notice with the reason.

Is the interest tax deductible?

It can be when the funds buy, build or substantially improve the home securing the line. Keep contractor invoices and ask your tax preparer. Nobody at Summit can give you tax advice.

What happens if I sell the house?

The line is paid off and released at closing, the same as a first mortgage. Request the payoff figure a few weeks ahead so the title company has it, and stop drawing once the property is under contract.

Open it before you need it

There is no annual fee on an unused line, and no good time to apply in the middle of an emergency.