ithinkfi Home Equity
Two ways to borrow against your house: a HELOC from 8.5% APR with a 10-year draw, or a fixed-rate second mortgage.
The Credit Union Trade-offs
- HELOCs start at 8.5% APR with a 10-year draw period and 15-year repayment.
- Fixed-rate second mortgages carry rates from 7.75% APR.
- Members can borrow up to 90% combined loan-to-value.
- Renovation was the top use in 2024, at 38% of new lines.
HELOC vs fixed second
The HELOC offers a flexible draw at a variable rate; the fixed second offers certainty with one lump sum.
| Feature | HELOC | Fixed second |
|---|---|---|
| Rate | 8.5% APR variable | 7.75% APR fixed |
| Draw | 10 years, as needed | Lump sum at closing |
| Repayment | 15 years | 10-20 years |
| Best for | Ongoing projects | One-time expense |
How much you can borrow
Combined loan-to-value can reach 90%, so equity above the 10% cushion is available.
On a $400,000 home with a $250,000 first mortgage, the credit line can reach $110,000. Appraisals are required above 80% CLTV, adding about two weeks to closing.
This rule does NOT apply to investment properties, which cap at 75% CLTV.
What 2024 borrowers actually did
Renovation led home equity use in 2024 at 38%, followed by debt consolidation at 27% and education at 14%.
The mix shifted from 2021, when debt consolidation led. Rising home values gave owners more equity to tap, and renovation returned as the top purpose.
The data does not cover HELOCs opened and never drawn, which behave like insurance and skew usage statistics.
The risk you are trading
A home equity loan turns unsecured debt into secured debt; missed payments put the house at risk.
We underwrite to keep the payment burden under 43% of income, but job loss changes every plan. Members with unstable income should keep the line smaller than the max.
Initially we approved lines faster by skipping income reverification but saw default risk climb, so the verification step returned in 2022.
Costs at closing
Ithinkfi pays standard closing costs on HELOCs below $50,000; larger lines and fixed seconds carry normal settlement charges.
A $50,000 HELOC closes with zero out-of-pocket cost for members. Appraisals, title work, and recording fees are waived below the threshold.
The data does not cover line increases, which are re-underwritten at current terms.
The HELOC funded our kitchen remodel in stages. We only pay interest on what we actually drew.
A fixed second at 7.75% paid off cards at 24%. The savings are life-changing and the math was plain.
What is the current HELOC rate at ithinkfi?
HELOCs start at 8.5% APR variable, with fixed seconds from 7.75% APR.
How much equity can I borrow against?
Up to 90% combined loan-to-value on primary homes.
What are the most common uses?
Renovation leads at 38%, then debt consolidation at 27%.
Are there closing costs on a HELOC?
Ithinkfi covers closing costs on HELOCs below $50,000.
Can I get home equity on a rental property?
Yes, but investment properties cap at 75% combined loan-to-value.
Opening a home equity line
- Estimate your equity
Home value minus first mortgage balance.
- Choose the product
HELOC for flexibility, fixed second for certainty.
- Apply with income docs
Pay stubs and tax returns speed the review.
- Appraisal and closing
Two weeks typical; we cover costs under $50,000.
HELOC usage by purpose
Renovation reclaimed the top spot among 2024 HELOC borrowers at 38%. Consolidation followed at 27%, then education at 14%.
The distribution guides our underwriting conversations: purpose predicts risk better than score alone.
Put your equity to work
Estimate your line in minutes; closing costs waived under $50,000.
Talk to a Mortgage AdvisorThe official methodology is detailed in the ithinkfi overview.
Oversight standards for this sector are published by www.ncua.gov and www.consumerfinance.gov.