HELOCS: A Beginner's Guide

A HELOC is a Home Equity Line of Credit.

It can be a convenient way to deal with big one-time expenses without draining your checking account.

Essentially, it allows you to borrow money with your home as the collateral. Unlike refinancing your existing mortgage, which gives you a certain amount of money all at once, a HELOC offers you the flexibility of a revolving line of credit. How much money you can access is determined by the current equity you have in your house and your credit history. Most HELOCs are used for major expenses - such as home updates and repairs, college tuition or large medical bills. A HELOC offers some serious advantages, but they are not without risk.

  • Regardless of your your maximum draw amount, you take only what you need (when you need it), and only pay interest on what you draw.
  • Often low upfront costs compared to other types of loans.
  • Often lower interest rates than credit cards or other unsecured loans.
  • When interest rates go up, the rates on HELOCs do too, and they go up a lot faster than they do on other loan types.

Flexibility + Predictability? Introducing flexLOC

Imagine combining the best of both worlds – the flexibility of a Home Equity Line of Credit (HELOC) and the predictability of a fixed-rate Home Equity Loan. That's our flexLOC in a nutshell.


The flexLOC combines the flexibility of a Home Equity Line of Credit with the predictability of a fixed-rate Home Equity Loan. 

You have the power to secure all or a portion of your current balance with a fixed interest rate and a set monthly payment in up to 3 different loans we call segments. 

'Segments' allow you to take control of your financial stability. By locking in specific portions of your line of credit, you're ensuring that they won't be subject to interest rate fluctuations. This means your monthly payments remain steady and predictable, making it easier to manage your finances and plan for the future with confidence.
With flexLOC, you can enjoy:

Tailored Flexibility: Access funds as you need them, just like a traditional HELOC. 

Smart Segments: We get it – life is full of surprises. That's why we are introducing flexLOC "segments." You can lock in up to three different portions of your credit line (segments) with a fixed interest rate and a steady monthly payment.

Predictable Payments: Say goodbye to interest rate fluctuations on your chosen segments. Locking in rates means steady, predictable payments, making it easier to manage your finances and plan with confidence.

Financial Stability: Protect a portion of your credit line from the twists and turns of interest rate changes.


Speak to a Mortgage Specialist

334-260-2600, Mon-Fri 8AM-5PM CST

MAX Credit Union is a full-service financial institution serving Central and East Alabama, including Montgomery, AL; Auburn, AL; Opelika, AL; Prattville, AL; Wetumpka, AL; Tallassee, AL; and Troy, AL.