home equity line of credit

Draw on your home’s equity for instant cash.

Knowing you have extra cash readily available can provide peace of mind.

Secured by the equity in your home, a home equity line of credit offers you exceptional financial flexibility in choosing when, and how much, you wish to borrow.

Use the money to tackle a home improvement project. Make a special purchase. Pay college expenses. Buy a new car. Or anything else you desire. Plus, interest paid on a home equity loan may be tax-deductible.*

ALEC Home Equity Line of Credit highlights:

Borrow up to 80% of the current appraised value of your home***

4.99% introductory APR for 12 months**

Easy repayment methods — via Online Banking, your ALEC account, or by phone

No annual fees or closing costs³

Home Equity Line of Credit Rate

Introductory Rate	After Intro Rate, APR* as low as
4.99% APR for the first 12 months ^5,6	7.75%

* APR = Annual Percentage Rate. All loans subject to credit approval. Rates subject to credit history, term and other factors. Not all applicants will qualify for our lowest rates. Rates can change daily.

⁵ Home Equity Loans/Lines are available in Illinois, Ohio, Wisconsin and Minnesota only and limited to owner occupied properties. All borrowers will be required to pay a $350 appraisal fee at closing. Maximum loan to value may be reduced due to underwriting factors. Minnesota applicants are responsible for a mortgage registration tax.

⁶ Home Equity Line of Credit Introductory Rate: After the initial 12-month period, the rate will be variable based on the Prime Rate. Prime Rate is “prime” as listed in the “Money Rates” section of the Wall Street Journal from the last business day of the previous month. As of February 28, 2023, the Prime Rate is 7.75%. The rate floor is 4.00%. Maximum APR during the life of the loan is 18% APR. $5,000 minimum initial draw required.

Your Savings Calculator

Interested in saving more money? If you’re currently paying a higher rate on a loan at another financial institution, consider refinancing it. This calculator allows you to enter your current information, and then shows you how much money you could save with a loan from us.

What are the differences between a Home Equity Loan and HELOC?

With an ALEC Home Equity Loan, the loan is closed-ended. The rate on a Home Equity Loan is fixed and has a defined term. The loan and payment amounts are set. This is not an open line of credit.

With an ALEC HELOC, this loan is open-ended. It has an introductory rate and then a prevailing variable rate after the introductory rate. The prevailing rate is based on the Prime Rate and is subject to change monthly. In addition, your HELOC payment can be interest only or principal and interest. You can also continue to use the open line on your HELOC for an extended period of time. This means that you can use funds on your HELOC for a project, pay it off, and then use the line again for a separate project.

What are the costs associated with a Home Equity Loan or HELOC?

ALEC absorbs the majority of closing costs for a Home Equity Loan or HELOC. The member is responsible for the $350 appraisal fee. Minnesota members are also responsible for paying a mortgage registration tax.

How long does it take to close on a Home Equity Loan or HELOC?

You can close your Home Equity Loan or HELOC in as little as 30 days.

Are there any pre-payment penalties with a Home Equity Loan or HELOC?

There are no pre-payment penalties with a Home Equity Loan or HELOC.

Does ALEC offer Home Equity Loans or HELOC's in all fifty states? Or is this product for members that live in specific states?

No. ALEC does not offer Home Equity Loans or HELOC's in all fifty states. Home Equity Loans and HELOC's are currently available in IL, WI, OH and MN at this time.

What is the interest rate on a HELOC after the introductory period?

The interest rate will vary based on the Prime Rate with a minimum rate of 7.75% APR**.

How much can I borrow?

You can borrow up to 80% of the current appraised value of the home, less any outstanding liens.

Additional Home Loan Resources

Fixed Rate Mortgages

Lock in a great rate and enjoy predictable payments over the life of your loan.

Adjustable Rate Mortgages

Enjoy a lower starting rate that adjusts to a variable rate after the initial period.

Real Estate Center

Buy or sell a home without stress and get rewarded at closing.

Open your line of credit today.

Apply Online

Use Our Mobile App

Visit a Service Center

Call 800.762.9988

* Consult your tax adviser for details regarding your situation. Not intended to be tax advice.

** After the intro period, a variable APR is subject to change monthly and is based on the Wall Street Journal prime rate. Prime Rate is “prime” as listed in the “Money Rates” section of the Wall Street Journal from the last business day of the previous month. Borrowers are required to have homeowner’s insurance on the property. Offer is subject to change without notice and requires credit approval. Current members modifying, increasing or refinancing existing ALEC home equity lines of credit are not eligible for the introductory rate. $5,000 minimum initial draw required.

³ ALEC will waive closing costs up to $500 for fees that include title insurance and recording fees. Minnesota applicants are responsible for a mortgage registration tax. All members are required to pay a $350 property appraisal fee at closing.

*** ALEC currently offers home equity loans in IL, WI, OH and MN. All loans subject to credit approval.

NMLS# 421478. View a complete list of all other NMLS numbers.