Home Equity Line of Credit

What's a Home Equity Line of Credit?

A home equity line of credit (HELOC) is a convenient, flexible and low-cost way to borrow money. A HELOC is a variable rate line of credit borrowed against your home's equity. A HELOC borrows off your home equity. You can pay back the credit used and continue to access it as you would any revolving credit. You can use a HELOC for just about anything you want, including home renovations, finance your kid’s education, or any other expense.

HELOC Benefits:

  • A great way to finance large expenses
  • Borrow as little or as much as you need, when you need it.
  • Easy access: Take advances on our line of credit using online banking, by phone or over the counter at any of our branches.
  • Possible tax advantages, including deductible interest (please consult your tax advisor) 

Home Equity Line of Credit Rate


As low as 6.00% (variable rate)

Index / Base Rate

WSJ Prime Rate

Current Base Rate (as of 10/1/2018)



5-year draw period, followed by a 15-year payback period


Interest-only during draw period, Principal & Interest during payback period

Loan to Value

Up to 85% (restrictions apply)

Second Mortgage Rate

Rate As low as 6.00% (fixed rate)
Term Up to 10 years
Payment Principal and Interest
Loan to Value Up to 85%

Second Mortgage & HELOC Fees

Origination Fee

½ Percent if the total amount of loan

Title Insurance Policy

Premium varies with loan amount. Required for all loans.

Appraisal Fee/ Value Check

$400.00-$650.00 in Tucson/ $50.00 (Value Check)

Recording Fees

$10.00 per document + mailing costs

Flood Determination


Property Tax Service


Escrow Fee

Check with Escrow Officer

Processing Fees (if applicable)

Up to $300.00



For HELOCs opened with at least a $10,000 initial advance and repaid over a minimum of three (3) years after opening, we may pay your mortgage fees to Pyramid Federal Credit Union as well as third party fees on your behalf. Such HELOCs must also remain open for a minimum of three (3) years, or the fees will be applied to the payoff balance.

ANNUAL PERCENTAGE RATE that can apply is 18% or the maximum permitted by law, whichever is less. Under no circumstances will your ANNUAL PERCENTAGE RATE go below 5.00% at any time during the term of the plan.

MAXMIMUM RATE AND PAYMENT EXAMPLES: If the Annual Percentage Rate during the draw period equaled the 18% maximum and you had an outstanding balance of $10,000.00, the minimum monthly payment would be $152.88. This annual percentage rate could be reached at the time of the 26th payment of the draw period. If you had an outstanding balance of $10,000.00 during the repayment period, the minimum payment at the maximum ANNUAL PERCENTAGE RATE of 18% would be $161.04. This annual percentage rate could be reached at the time of the 26th payment of the repayment period.

HISTORICAL EXAMPLE: The following table shows how the annual percentage rate and the monthly payments for a single $10,000 credit advance would have changed based on changes in the index over the past 15 years. The index values are from the last business day of January of each year.

While only one payment per year is shown, payments may have varied during each year. The table assumes that no additional credit advances were taken, that only the minimum payments were made, and that the rate remained constant during each year. It does not necessarily indicate how the index or your payments will change in the future.