A home equity line of credit is a form of revolving credit in which your home serves as collateral. Because a home is often your most valuable asset, many homeowners use home equity credit lines only for major items, such as education, home improvements, or medical bills, and choose not to use them for day-to-day expenses.

With a home equity line, you will be approved for a specific amount of credit. The potential credit line is determined by taking a percentage (say, 85%) of the home's appraised value and subtracting from that the balance owed on the existing mortgage. For example:

TTCU offers (2) different adjustable rate Home Equity Lines of Credit:

• Rate is adjusted quarterly with level payments (1.25% of balance).  Credit limit is up to 85% of appraised value.  Maximum term is 7 years with a 5 year draw period. 
• Rate is adjusted monthly with interest only payments.  Credit limit is up to 95% of appraised value.  Maximum term is 25 years with a 10 year draw period.