Home Equity Loans

If you have built up equity in your home, apply now to use that equity to get a loan for home improvements, school tuition, bill consolidation or even a vacation. American Heritage has a variety of Home Equity Loan programs to match your needs and financial status.

Fixed-Rate Home Equity Loans

  • Loan amounts from $5,000 to $1,500,000
  • Terms up to 20 years
  • Borrow up to 95% of your home’s value
  • Fixed monthly payments
  • For the homeowner who needs a consistent and manageable monthly payment.

Gold Home Equity Line of Credit

  • Credit line from $10,000 to $1,500,000
  • Borrow up to 95% of your home’s value
  • 5-year draw period
  • Principal and interest payments (based on a variable rate)
  • Minimum withdrawal amount is $1,000
  • Enjoy the flexibility to use and repay available funds for a longer draw period.

Platinum Fixed-Rate Home Equity Line of Credit

  • Unique Fixed-Rate HELOC
  • Gain peace of mind with fixed monthly payments
  • Borrow up to 95% of your home's value
  • 3-Year Draw Period
  • 5-Year, 10-Year, & 15-Year repayment options
  • Variety of line of credit amounts starting at $5,000 to $1,500,000
  • Payments Won’t Start Until the Line is Utilized
  • Fixed monthly payments will help you budget better as you spend and repay funds.

Interest-Only Home Equity Line of Credit

  • Credit line from $10,000 to $1,500,000
  • Borrow up to 95% of your home’s value
  • 3-year draw and interest-only period
  • The lowest monthly payments (based on a variable rate)
  • Low origination fee
  • Minimum withdrawal amount is $1,000
  • Only pay interest on the funds you use during the draw period and benefit from lower monthly payments.

Product Comparison Table

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Fixed Rate Home Equity Loans$5,000-$1,500,000n/aup to 20 yrs95%n/a
Gold Home Equity Line of Credit$10,000-$1,500,0005 yrn/a95%$1,000
Platinum Fixed-Rate Home Equity Line of Credit$5,000-$1,500,0003yr5, 10, 15 yrs95%n/a
Interest-Only Home Equity Line of Credit$10,000-$1,500,0003yrn/a95%$1,000

For a full list of Home Equity Loans terms and Annual Percentage Rates (APRs) please visit our Rates page here.


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What is a Home Equity Loan?

Couple enjoying coffee
By: American Heritage

From home renovations to high interest debts, you may find yourself at a juncture where you’re in need of cash. If you can relate and are a homeowner, the following options may be worth exploring as you weigh your financial decisions:

  • Home equity loan
  • Home equity line of credit (HELOC)

As part of a 2-part blog series, and in an effort to help our members better understand both options, our team is reviewing the differences between a home equity loan and a home equity line of credit—both of which are potential options for those wanting to borrow on their home's equity.

To get started, let’s review the following brief overview that explains what is a home equity loan—including how to use it, the benefits, and how to a secure a home equity loan.

What is a Home Equity Loan?

A home equity loan, also commonly referred to as a second mortgage, is a loan that allows you to borrow from the equity you have invested in your home. As a refresher, “Your equity is the difference between how much your home is worth and how much you still owe on your mortgage” ( Bankrate).

A home equity loan gives you a single lump sum of money you can use however you choose. For example, a home equity loan is perfect to pay off large bills like student loans, consolidate high-interest debts, or finance a big event like a wedding or dream vacation. Added bonus: You get a low fixed-rate and an affordable monthly payment that will never increase.

How Can I Use a Home Equity Loan?Based on your needs and priorities, where you apply the funds from your home equity loan can vary. Below are some examples of how the money from home equity loan may be allocated:

  • Home Renovations
  • Student Loans
  • Pay of Credit Card Debt
Man blowing sawdust

It’s important to note that while there are advantages of using a home equity loan (most notably the low interest rates), homeowners should be cautious, ask smart questions and weigh all options before securing a home equity loan.

For example, according to Bankrate, while a “home equity loan can be a good way to fund a college education because the interest rate might be lower than the rate on a student loan”—but be careful not to default on the home equity loan, because “defaulting on a student loan will only hurt your credit, but if you default on a home equity loan, you could lose your house.”

What are the Benefits of a Home Equity Loan? 

For borrowers, the benefits of a home equity loan can be broken into the following categories:

  • Low Interest Rates: Perhaps one of the best benefits of a home equity loan are the interest rates, which are most often at a fixed rate, meaning that the interest rate will not fluctuate. In addition, “home equity loans usually have lower interest rates than credit cards and other types of unsecured debt, because your home acts as collateral for the loan, meaning lenders take on less risk and are more willing to offer lower interest rates.(S. News)
  • Large Access to Cash: With a home equity loan, you are able to tap into the money that you have already invested in your home—an amount that can range depending on the amount and frequency of your monthly payments. With that said, it’s important to remember that “the actual amount of the loan also depends on your income, credit history, and the market value of your home” (Federal Trade Commission).

How Do I Secure a Home Equity Loan?

Before you apply for a home equity loan, there are three things you should do: determine how much equity you have in your home, know your credit score, and “look at your debt-to-income ratio” (Bankrate). Below are examples of what is offered when it comes to a home equity loan from a financial institution like American Heritage Credit Union:

  • Loan amounts from $5,000 to $1,500,000
  • Terms up to 20 years
  • Borrow up to 95% of your home’s value
  • Fixed monthly payments

Stayed tuned for the next blog in this 2-part series!

If you’re interested in learning more about securing a home equity loan or home equity line of credit, don’t hesitate to contact our team today!


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Apply for the home equity solution that fits your needs.


In compliance with stipulations required under the SAFE Act, American Heritage Federal Credit Union, AMHFCU, is hereby listing the unique identifier information, also known as the NMLS#, for AMHFCU below:

AMHFCU | #433838

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