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The PSBT Corner News is your place to find helpful advice and knowledge on the various financial topics that you need in your daily life. Also, you will find updates about our team and locations as well as our community outreach initiatives.

Borrowing With a Home Equity Line of Credit

Borrowing With a Home Equity Line of Credit

Are you looking to get started on your next big project? Having suitable funding makes a difference in determining how much you’ll need to borrow. With A Home Equity Line of Credit, you can easily draw the funds when you need them most.

What is a Home Equity Line of Credit (HELOC)?

A Home Equity Line of Credit, also known as a HELOC, is a loan secured by your home through a revolving line of credit. “A HELOC offers more flexible options if you aren’t sure of the amount you need. The amount you borrow is dependent on your home’s appraised value and the equity you’ve built up,” says Christine Brenner, Retail Business Development Officer. By using a HELOC, you can borrow as little or as much of the approved line amount as you need. Other types of home equity loans may require you to use and repay the full amount of the loan applied for.

How Does a HELOC Work

A HELOC lets you borrow against a percentage of the equity that is available in your home, which is used as collateral. It works similarly to a credit card. As you make purchases using the line of credit, you’ll need to make payments toward the balance, plus applicable interest. The amount of available credit is then returned to its original state.

Without exceeding the credit limit, you can use the funds during the draw period, which is typically ten years. At the end of the draw period, the repayment period begins which is when the loan is expected to be repaid in full over time. Keep in mind that there are payments during the draw period, which may be interest-only or principal plus interest.

Peoples SelectLOCTM(1)

Use This Great Introductory Rate to Help You Get Started


Take advantage of the equity you’ve built and borrow up to 80% of your home’s appraised value. Whether you’re looking to improve your home, buy a new car, or finance an education, a Peoples SelectLOCTM(1) allows you to become more adaptable and flexible with your spending. Don’t miss out on this great deal.

Apply Now*


*Our mortgage loan applications are collected by Finastra, a trusted business partner. By proceeding, you will be directed to Finastra’s mortgage web center.

(1) Peoples Security SelectLOC™ is an interest only or principal & interest monthly, variable rate home equity line of credit which allows up to three fixed rate and payment balance  conversion options at any one time during the draw period. Available to borrowers with a 1-4 family owner-occupied primary residence who may borrow up to 80% of their home’s value. The line has a maximum draw period of 10 years with non-converted balances at the end of the period converting to a 20-year variable APR repayment term. Conversion Option: During the draw period, the line allows the borrower selected balances to be locked in for a fixed rate and term. There is a $75 per lock in conversion fee. Payments to the variable line and converted balance portions reducing principal will allow the line of credit availability to increase up to the maximum amount granted. Fees to open this line of credit generally range between $0 and $1,100 in Pennsylvania and $0 and $4,125 in New York and $0 and $1,050 in New Jersey. Homeowners insurance is required. Flood insurance may be required as necessary. APR may not exceed 18.00% (PA) and 16.00% (NY), (NJ) with a minimum rate floor of 3.99%. Maximum loan amount $300,000. (2) All loans subject to credit and collateral approval. This offer is effective 1/29/24 and may be discontinued at any time without notice. (3) The initial Annual Percentage Rate (APR) of 1.99% fixed for a period of six months will apply from date of origination when a minimum $10,000 advance is taken on date of origination. The 1.99% introductory APR only applies to unconverted balances. This introductory rate is offered with autodraft of payment from a Peoples Security Bank checking account. Rate offered without autodraft of payment from a Peoples Security Bank checking account is 2.49% APR. (4) Following the introductory rate period, the Annual Percentage Rate (APR) will vary based upon Prime Rate as published in the Wall Street Journal, currently 8.50%, effective 1/29/24. This rate is offered with autodraft of payment from a Peoples Security Bank checking account. Rate offered without autodraft of payment from a Peoples Security Bank checking account is 9.00% APR.

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