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Hybrid Home Equity Line of Credit (HELOC)

Enjoy 10 years of low-cost borrowing power with a fixed rate for the first few years.

Benefits of a Power Financial Credit Union Hybrid HELOC

Fixed-Rate Period

Choose to lock in a competitive APR for the first 3, 4, or 5 years.

Extended Terms

Draw on your HELOC for 10 years. Then you have 15 years to pay in full.

Simple Access

Get your funds anytime through special checks or Online or Mobile Banking.

Multi-Purpose

Use your credit line for anything from home remodeling to vacations.

Key Details of a Hybrid HELOC

This is the turning point. This is the moment you go from dreaming to doing. With a Hybrid Home Equity Line of Credit, you can afford to do all the things your family deserves.

  • It's a convenient line of credit you can use on an ongoing basis
  • Take advantage of a fixed rate for the first 3, 4, or 5 years before it converts to variable
  • You can draw on the funds for 10 years then you get another 15 years to repay in full
  • Use the funds for home improvements, major purchases, tuition, vacations, and more
  • Ideal for consolidating high-interest loans or credit card debt
  • Line of credit limits start at $10,000
  • Borrow up to 70% of your home equity, which is your home's current market value minus your current mortgage balance
  • Access your funds by using special checks or Online and Mobile Banking
  • When you pay down your balance, the funds become available again
  • You don't need to submit another application or pay new fees to use more credit
  • Power Financial Credit Union may cover up to $1,000 in closing costs*
  • Interest may be tax-deductible when funds are used for home improvements**

Apply Now

Hybrid HELOC Rates

Loan Type Max LTV Term Rate
Home Equity Hybrid Line of Credit - 1st Position 70% 10-year draw period and 15-year payment term Fixed rate between 7.12% – 9.12% then variable rate between Prime + 0.00% and Prime + 1.25%
Home Equity Hybrid Line of Credit - 2nd Position 70% 10-year draw period and 15-year payment term Fixed rate between 7.24% – 9.24% then variable rate between Prime + 0.25% and Prime + 1.50%


Here's How to Apply for a Hybrid HELOC

Step 1

Apply

You can apply online, in-branch or by speaking with one of our trusted advisors.
Step 2

Check Your Offer

We'll look at your financial situation and home value then offer you a rate and hybrid HELOC limit.
Step 3

Use Your Funds

You can use Online and Mobile banking to transfer HELOC funds or use a special check.

"Great bank, great employees, and great rates. I'm glad to be part of the PowerFi family!"

– Ana A.

FAQs About Hybrid Home Equity Lines of Credit

Accordion Section

A hybrid home equity loan, or fixed-rate HELOC, is a combination of the two products.

 
  • A traditional home equity loan usually comes with a fixed annual percentage rate (APR) for the entire loan term.

  • A traditional HELOC usually comes with a variable rate for the entire draw period and repayment term.

  • A hybrid fixed-rate home equity loan or HELOC means you get a fixed rate for the first few years of your draw period and then you get a variable interest rate for the remainder.

Power Financial Credit Union lets you choose if you want to lock in a fixed rate for 3, 4, or 5 years. In this period, your rate will stay the same no matter what happens in the markets. This fixed-rate period offers a great opportunity to cross off your to-do list or pay down high-interest debt!

When you apply for your HELOC, you get a fixed rate based on your credit score and other factors like your debt-to-income (DTI) ratio or loan-to-value (LTV) ratio.

At the end of the fixed-rate period, your interest rate will begin going up and down with the markets. The variable rates you get will be based on a Prime Rate (such as the Federal Funds Rate) plus a margin determined by your lender.

The Prime Rate is how much financial institutions pay to borrow money from each other overnight so that they always have the legal amount of reserves in their accounts. Your lender then adds a small margin on top of that, which may be determined by your credit score and other factors.

The amount you can borrow is based on the amount of equity in your home. You can borrow up to 70% of that equity. To work out your home equity:

 
  • Find out the current market value of your home. For example: $350,000

  • Subtract your current mortgage balance. For example: $200,000

  • You have equity of $150,000

  • 70% of $150,000 = $105,000

As you pay down your HELOC balance each month, you can use the funds over and over again throughout your 10-year draw period.

You can use your hybrid HELOC for just about anything! Common uses include:

 
  • Home improvements, remodeling, and repairs 

  • Vacations, weddings, and other family events

  • Medical, dental, and vision expenses

  • Unexpected expenses and emergency funds

  • Debt consolidation of high-interest credit cards and loans

Note that the interest you pay on your HELOC may be tax-deductible when the funds are used for substantial home improvements. That's why it's a good idea to draw on separate amounts of funds for each purpose – and keep records. Check with your tax advisor for details!

A HELOC is more like a credit card in that you get a credit limit, and you can use as much or as little of the funds as you want at any time. You can choose how much to repay each month. When you pay your balance down, you can use the funds repeatedly until the end of your 10-year draw period.

At the end of your HELOC draw period, you get a 15-year repayment period to pay off your outstanding balance.

In contrast, a home equity loan is a fixed-rate loan like a personal loan. You get a lump sum payment and then make equal monthly payments through your loan term until the loan is paid off in full. 

 
  • Both options can offer more competitive rates than unsecured loans and credit cards because your home serves as collateral in case you don't repay the money. 

  • Both options offer loan amounts of up to 80% of your home equity.

HELOCs do generally require closing costs. Luckily, we are offering to pay up to $1,000 of your closing costs for you! You must simply keep your credit line open for at least 48 months.

Any of our existing credit union members are welcome to apply for a fhybrid home equity line of credit, or it takes just a few minutes to become a member.

Our membership consists of those who: live, work or go to school in Broward, Charlotte, Collier, Lee, Martin, Miami-Dade, Monroe, Palm Beach County, Hillsborough, Manatee, Pinellas, Sarasota, or St. Lucie counties.

Immediate family of all current members are also eligible to join.

We're also proud to offer membership to our Select Employee Groups. Members or employees of these organizations are welcome to join and apply for our quality products and services no matter where you are located:

 

Want to Move Forward with Your Hybrid HELOC?

Other Ways We Can Get Your Finances in Shape

Traditional Home Equity Line of Credit (HELOC)

With a regular HELOC, your rates are variable from the start. This means your rate may go up within months. But, equally, your rates may come down! Get quick access to funds for any purpose.

The Ultimate Guide to Home Equity Lines of Credit (HELOC)

Get tips and tricks on how to put your HELOC to use and why it's a better option than reaching for your credit card to cover planned and unforeseen expenses.

Reverse Mortgage

If you're  62 and older, you can borrow against your home to get a lump sum or credit line and make no payments until you sell your home. The money isn't taxable and doesn't affect Medicare or Social Security.

Page Disclaimers

*Credit Union pays up to $1000 toward closing costs on new lines and refinances regardless of lien position. Member will reimburse the Credit Union if loan is closed within 48 months.

**Consult your tax advisor.

Eligibility for the lowest rate is based on loan to value (LTV), credit worthiness, ability to repay, credit score, and term of loan. Other conditions may apply. Rates are subject to change at any time. Credit for discounts such as a .125% discount for automatic loan payment transfer from your Credit Union account and a .125% discount for previous Power Financial Credit Union borrowers will be applied once the fixed period ends. (Interest may be tax-deductible, consult your tax advisor).

The maximum APR that can apply over the life of the loan is 18.00%. For a Home Equity Hybrid Loan of $50,000 at 7.12% over 15 years you would make 180 payments of $452.78. Immediate usage required is $10,000. The estimated Credit Union and third party fees for a Home Equity Loan are $1,600.

Rates and offers are subject to change without notice.