Being a homeowner doesn’t just come with a long to-do list… there are many great opportunities that come from building equity in your home.

One of the many benefits of home ownership is using that equity to your benefit by financing large purchases or home renovations through a Home Equity Line of Credit (HELOC).


What is a HELOC and how does it work?  

A Home Equity Line of Credit is just what it sounds like – a line of credit for a given amount that you pay back over time, with interest. However, unlike other lines of credit like a personal loan or credit card, a HELOC is secured by the equity you’ve already built in your home.

Like a credit card, when you take out a HELOC, you’re getting approved for a line of credit up to a certain amount. That amount depends on how much equity you have in your home, along with the traditional considerations of your credit score and other factors.

Once your limit is set, you can spend within that amount over time and pay back only the amount used with interest, rather than borrowing a fixed amount at once and paying interest on all of it. You will also have a physical card to use for purchases made through your HELOC, making it easy to spend and track.

Unlike a credit card, you can only spend this line of credit during a defined draw period, which will be outlined in the terms of your loan. The draw period on a HELOC loan from Orion is 10 years.


Why would I choose a HELOC over another line of credit?

Because a HELOC is a loan secured by the value of your home, it often comes with a much lower interest rate than unsecured borrowing options. Orion’s HELOC loan rate starts at an introductory rate of 5% APR for 6 months.

A HELOC can also include fewer upfront obligations – Orion pays the closing costs for HELOC borrowers.

And, mortgage and HELOC interest paid is tax deductible, while credit card interest is not.


How much credit can I get through a HELOC?

Every situation is different, and the only way to know your credit limit with certainty is to apply. But you can roughly estimate your home’s current equity as the difference between the appraised value of your home and your mortgage balance.


How could I use a HELOC?

The most common reason homeowners take out a HELOC is for home improvements. You might use the funds to renovate a kitchen or bathroom, add outdoor features like a pool or landscaping, paint the exterior of your home, or remodel dated rooms. All of these changes can help to increase your property value in the long run, making a HELOC an even better investment.

But, a HELOC doesn’t have to be for home renovations! This line of credit can be used to finance any major expense – including a wedding, vacation, expensive vehicle repairs, or any other major expense. Remember though, that a HELOC is essentially a second mortgage and works best if the money borrowed is used to improve your financial situation in the long run.  As with all debt, responsibility is the key to financial security.  Orion financial counselors are available to discuss your situation and help you evaluate if a HELOC is the right loan option for you.


Depending on your financial situation, a HELOC can be a great option to meet your needs.

Ready to apply? Take advantage of Orion’s competitive HELOC loan rates – now featuring 5% intro APR for 6 months.

To learn more, call us at 901-385-5200, or send a secure message through online banking or your Orion mobile app.


*Home Equity Line of Credit (HELOC) rates are tied to the prime rate, which is subject to change without notice. Conditions apply, contact us for more details.

Offer valid as of 5/4/2023 and is subject to change or withdrawal without notice. Offer applies to new HELOCs only. 5% APR is valid for 6 months from opening. After 6 months standard APRs will apply. Standard APRs are variable and are based on Wall Street Journal Prime Rate plus a margin of -0.25% to 4.5%. Minimum standard APR is 8.00% and maximum APR is 18%. As of 7/27/2023, the standard APR is 8.25% to 13.00%. Offer applies to lines from $20,000 to $250,000. Loans are subject to approval. Other restrictions may apply.

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