Chase Bank allows you to access the equity value in your home to get some funds in times of need. This simply means a home equity line of credit or HELOC is secured by your home and you can use the funds to cover a number of expenses.
For example, you can consolidate your high interest debts, pay education expenses, purchase a new vehicle, renovate your home or plan a vacation.
How Chase HELOC works?
A home equity line of credit uses the home as collateral and it is a revolving variable-rate line of credit.
You can borrow up to a certain amount depending on the difference between the debt secured by the home and the present market value of the home. Thus, you may be eligible for a HELOC even if you are too low on credit to qualify for a personal loan.
There is no fixed schedule and you can use the money whenever you want it. Once your application is approved, you can withdraw what you want, when you want, and pay interest only on the money that you withdraw.
Features of Home Equity Line of Credit
Home Equity rates may vary with the prevailing market condition and it is based on the Prime Rate published by The Wall Street Journal. Usually, the APR varies between 3.5% and 6.5%, depending on the line amount.
Each line of credit term is divided into two periods: one period to draw on funds, and the other to repay the funds.
Your overall credit limit is available during the 10 year draw period and you can use the funds on a revolving basis. As you continue to payoff your balance, the available credit increases and you can use it in future.
Please note that the draw and repayment periods may vary by state.
There are certain requirements that you will have to fulfill in order to get this line of credit. You can get exclusive details on the official website of the bank.
The following are some benefits of a HELOC.
- The interest that you pay on your home equity line of credit is potentially tax deductible whereas auto loan and credit card payments are not tax deductible.
- You can also lower the monthly payments and save more money on the interest.
- You can choose to pay the minimum 1% of the outstanding balance or interest only when you access your home equity line of credit.
- You can get access to available funds if the repayment is 1% of the outstanding balance.
- A HELOC can be a great alternative to personal loans.
Home Equity Line of Credit Customer Service
A HELOC applicant should call 1-888-342-4273 for more information regarding the product and also to get started with the application.
The fax number for new borrowers is 1-800-950-3563.
An existing borrower can call the customer service phone number 1-800-836-5656 or log on to Chase Online for information regarding their HELOC account.
The fax number is 1-614-422-7171.
The mailing address to send your payments is as follows.
Attn: Home Equity Servicing
Mail Code OH4-7304
3415 Vision Drive
Columbus, OH 43219-6009