A Home Equity Line of Credit (HELOC) lets you borrow against the equity in your home. It works like a credit card—you're approved for a maximum credit line and can draw funds as needed during the draw period (typically 10 years). You only pay interest on what you borrow. After the draw period ends, you enter the repayment period and pay back the principal plus interest over the remaining term.
A HELOC can be used for almost any purpose, including home renovations, debt consolidation, education expenses, major purchases, emergency funds, or starting a business. Because it's secured by your home, HELOC rates are typically lower than credit cards or personal loans, making it a cost-effective way to finance large expenses.
A home equity loan gives you a lump sum with a fixed interest rate and fixed monthly payments. A HELOC provides a revolving credit line with a variable rate—you draw what you need and only pay interest on what you use. HELOCs offer more flexibility for ongoing expenses, while home equity loans are better for one-time costs with predictable payments.
A HELOC is a type of second mortgage, but they're not identical. Both are secured by your home and subordinate to your primary mortgage. However, a traditional second mortgage provides a fixed lump sum, while a HELOC offers a flexible credit line you can draw from as needed. Both use your home as collateral.
Most lenders require a minimum credit score of 620–680 for a HELOC, though requirements vary. Higher credit scores typically qualify for better rates. At PSBT, we evaluate your full financial picture—including income, debt-to-income ratio, and home equity—not just your credit score. Contact us to discuss your specific situation.
HELOC borrowing limits are based on your home's equity. Most lenders allow you to borrow up to 80–85% of your home's value, minus what you owe on your mortgage. PSBT offers HELOCs up to 80% combined loan-to-value (CLTV) with a maximum credit line of $300,000. Use our HELOC calculator above to estimate your borrowing power.
HELOC closing costs typically range from 2–5% of the credit line and may include appraisal fees, title search, attorney fees, and recording fees. At PSBT, we cover closing costs on HELOCs up to $500,000—keeping more money in your pocket. Fees generally range from $0–$1,100 in Pennsylvania, $0–$4,125 in New York, and $0–$1,050 in New Jersey.
As of December 2025, the national average HELOC rate is 7.81% APR. PSBT offers a 1.99% introductory APR²,³ for the first six months—nearly 6 percentage points below the national average. After the intro period, our variable rate is 6.75% APR²,⁴ with autopay from a PSBT checking account, still more than a full point below average.
Yes. PSBT's Peoples Select LOC™ allows you to convert portions of your variable-rate balance to a fixed rate—up to 3 fixed-rate locks at a time during the draw period. This gives you the flexibility of a line of credit with the payment predictability of a fixed-rate loan, without needing to reapply.
You can apply for a PSBT HELOC online1, by phone at 1.844.PSBT.NOW, or in person at any of our branches across Pennsylvania, New York, and New Jersey. Our lending team will guide you through the process step-by-step. You'll need to provide information about your income, property, and existing mortgage.