A Home Equity Line of Credit (HELOC) is a revolving line of credit available to homeowners based on the equity they have in their home. Home equity is the difference between the home's appraised value and the outstanding balance of the home's mortgage(s). This is a valuable resource for homeowners who are looking to help finance large purchases or who need access to flexible funding options.

Benefits of a HELOC

HELOCs can be very beneficial for homeowners as this is a flexible, cost-effective way to leverage your home equity in many different ways.

You can use HELOC funds for almost any purpose, such as home improvements, education expenses, medical bills, or debt consolidation. This versatility provides financial flexibility to address various needs.

You can easily access your funds through checks and online transfers. This convenience allows for quick and straightforward borrowing as needed.

HELOC interest rates are typically lower than that of credit cards and other types of personal loans because the loan is secured by the home. This can result in significant savings on interest payments.

During the draw period (the time in which you can use the funds of the HELOC), your minimum monthly payment is only 1% of the outstanding balance due. This can help manage your cash flow by keeping your required monthly expenses low.

Your interest paid may be tax-deductible, particularly if the funds are used for home improvements. To understand the specifics or determine if you qualify for this benefit, please consult your tax advisor.

As the principal of the loan is repaid, more funds become available to borrow again. This ongoing access to credit can be especially helpful in managing ongoing or unforseen expenses, such as during home renovations, wedding planning, or dealing with health issues.

You’re only required to pay interest on the amount you actually use, not the entire credit limit available.

Since your credit limit is based on your home equity, you may qualify for substantial credit limits which can provide funds for extra large expenses or investments. This is why so many homeowners are choosing to take out HELOCs instead of moving homes.

Some borrowers choose to use their HELOC to consolidate their high-interest debts into a single, lower-interest payment which can help improve your overall financial stability and reduce monthly debt payment obligations.

Uses for a HELOC

One of the things that makes HELOCs such a opular financing option is the ability to use the money on nearly anything.

Home Improvements

Home Renovations

Education and Tuition Expenses

Unexpected Costs

High-Interest Debt

Wedding Planning

Medical Costs and Bills

and more!

How a HELOC Works

Since this loan is a revolving line of credit, as you pay off the credit you’ve used, that amount becomes available for you to use once again throughout the term of your agreement.

Use Funds up to the Line of Credit Amount

Use credit line checks we provide or transfer funds from your credit line account to another Newton Federal account.


A HELOC is a revolving line of credit secured by the equity in your home. It allows you to borrow money up to a certain limit, repay it, and borrow it again.

A home equity loan provides a lump sum of money with a fixed interest rate and repayment schedule. A HELOC, on the other hand, offers a line of credit that you can draw from as needed.

The credit limit is usually determined by the amount of equity you have in your home, we can loan up to 80% of appraised value.

Borrowers can draw up to the day before the HELOC matures. The minimum monthly payment is 1% of the outstanding balance.

Our HELOC offers a variable interest rate which is tied to the prime rate. This means it can fluctuate over time.

Yes, you can use HELOC funds for almost any purpose, including home improvements, education, medical bills, debt consolidation, or other major expenses.

You can access HELOC funds through checks or account transfers to existing Newton Federal accounts.

No, you only pay interest on the amount you actually borrow, not the entire credit limit.

Yes, there can be various fees, including application fees, annual fees, and closing costs, but don’t worry, we will review and discuss everything with you ahead of time.

Yes, you can pay off your HELOC early without penalties.

Our minimum credit score requirement is 680 from Equifax. For specific qualification details, please contact us to discuss.

Yes, you can obtain a HELOC with an existing mortgage, as long as you have sufficient equity in your home.

Don’t let expenses or a lack of extra cash flow keep you from reaching your dreams and goals. Make the equity you have in your home work for you. Newton Federal’s HELOC can help you finance life’s most important purchases. If you’re interested in learning more or seeing how much equity you currently have in your home, reach out to me today. I would love to make your dreams a reality!

Tonya Presley Burnett

VP, Mortgage Servicing Director

c: (770) 385-3577

e: tonyaburnett@newtonfederal.com

NMLS: 430694

Newton Federal
3175 Hwy 278
Covington, GA

*All credit decisions are subject to normal underwriting procedures.

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Newton Federal Bank is a division of Affinity Bank. Newton Federal Bank and Affinity Bank are the same entity for the purpose of calculating FDIC insurance limits and deposits. Effective September 15, 2023, the Bank converted from a federal savings association to a national bank, and as a result, the Company became a bank holding company instead of a savings and loan holding company. Newton Federal is not responsible for and has no control over the subject matter, content, information, or graphics of the web sites that have links here. Please contact us with any concerns or comments. © 2023-2024 All Rights Reserved.