HOME EQUITY LINE OF CREDIT
6.625% APR, and you only pay for what you actually use
A HELOC turns the equity in your house into a credit line you can draw on for ten years. It is the cheapest flexible money most homeowners can get, and the easiest to misuse.
How it works
One account, two very different halves
A line of credit is approved once for a maximum amount, then sits there. Open a $60,000 line and draw $8,000 for a roof, and you owe interest on $8,000, not on $60,000. Pay it back and the room is available again. There is no charge for having the line open and unused.
What trips people up is that a HELOC has two phases with completely different payments. Understanding the handoff between them is most of what you need to know before signing.
Draw period, years 1 through 10
Borrow and repay as often as you like, up to your limit, using a check or the mobile app. The minimum payment is interest only, so a $50,000 balance at 6.625% costs $276.04 a month. Paying only that minimum means the balance never moves.
Repayment period, years 11 through 25
The line closes to new draws and the balance amortizes over fifteen years. That same $50,000 goes from $276.04 to $439.00 a month, overnight. Plan for that number now, not in year ten.
Limits
How much you can borrow against
Combined loan-to-value means your first mortgage plus the new line, divided by the appraised value of the home.
Combined loan-to-value
APR as low as
Maximum line
Minimum draw
Up to 70%
6.625%
$250,000
$500
70.01% to 80%
6.875%
$200,000
$500
80.01% to 90%
7.625%
$100,000
$500
Above 90%
Not offered
None
None
Example: a home appraised at $400,000 with a $220,000 first mortgage is at 55% before any line. A $60,000 line takes the combined figure to 70%, which keeps you in the top pricing tier. The rate is variable and tied to the prime rate, with a lifetime ceiling of 15.00% APR. Owner-occupied primary residences only. Rates current as of July 2026 and subject to change. Membership eligibility required. Equal Housing Opportunity Lender. This is a demonstration website; rates, products, and figures shown are illustrative only.
Good uses
What a line of credit is genuinely good at
The common thread is that the cost is uncertain, or the money comes back.
Renovations with a moving price
A kitchen quoted at $45,000 rarely lands at $45,000. Draw against the line as the invoices arrive instead of borrowing a lump sum and paying interest on money sitting in checking.
A standing emergency fund
Open the line when you do not need it and leave it at zero. It costs nothing to carry and it means a failed furnace in January is not a credit card at 22%.
Bridging two closings
Buying before you sell is the classic squeeze. A line lets you cover the down payment on the new house and clear it entirely when the old one settles.
Bad uses
Where this goes wrong
Your house is the collateral. That is what makes the rate low and it is also what makes a bad decision expensive in a way a credit card never is.
Common questions
Is the rate fixed?
No. A HELOC is variable and moves with the prime rate, adjusting the first day of the month after a change. Your ceiling is 15.00% APR for the life of the line, which is disclosed at closing.
What does it cost to open?
Summit pays standard closing costs on lines up to $250,000. If you close the line within the first 24 months we recover those costs, typically $400 to $900 depending on your county's recording fees.
Can I lock part of the balance at a fixed rate?
Yes. You can convert up to three portions of the balance into fixed-rate segments with terms of five to fifteen years, and keep drawing on whatever is left.
How long does approval take?
Ten to fifteen business days for most files. If an automated valuation works on your property, we skip the appraisal and it moves faster.
Is the interest tax deductible?
It can be when the money is used to buy, build or substantially improve the home securing the line. Keep your invoices and ask your tax preparer. We cannot give tax advice.
Open the line before you need it
There is no cost to have it sitting at zero, and no good time to apply during an emergency.