Idaho is a lovely state that is home to over one and a half million people. The median house value in Idaho is estimated to be $175,000. There has been an increase in the appreciation value of homes throughout the state, allowing more people to sell their properties for more than what they originally paid. Because of this spike in worth, many Idaho residents are seeking home equity lines of credit to have money they can borrow against for future financial emergencies.

What is a HELOC?

A HELOC, also known as a home equity line of credit, is similar to a credit card because you can draw on a specified limit after being approved. What makes a HELOC different from typical credit cards is that you’re basing your account on the equity in your home. Most banks will approve your credit line for up to 85 percent of what your property is worth. You can then choose to draw on that amount as often or as little as you wish. When making payments on your HELOC account, you’ll be building valuable credit to increase your FICO score.

What are the Advantages of Opening a HELOC Account?

The most advantageous aspect of a HELOC account is that you have a large amount to draw on. Unlike traditional credit cards that only allow you to take out a line of credit of about $15,000, the HELOC account is based on the equity you’ve built within your home. Depending on the value of your house, you could have an account worth hundreds of thousands of dollars. This is beneficial to families who need a large lump sum of cash or who want to have more time to draw on their line of credit. With a HELOC, your credit score is not necessarily a problem during the application process. Banks want to know more about your home and its value as opposed to determining your eligibility based on your credit score. This makes it an ideal opportunity for people with bad credit to still get a credit card.

How to Find a Good Bank in Idaho

Idaho offers many banks that provide home equity lines of credit to homeowners who have lived in their houses for more than 10 years. Each bank is different in what they require from their applicants, but you’ll need to make sure that your equity has been built to a significant amount and that your home has recently received a county assessment. The application process is quite easy, but you’ll need additional documentation to prove you’re the owner of the home as well as proof of any value vested into the land.

Below is a list of some of the top banks in Idaho offering home equity lines of credit:

• Key Bank
• Bank of the West
• Eastman
• Citibank
• Bank of America
• Wells Fargo

Interest, Repayment and Fine Print

The average interest rate attached to a HELOC account is 5.5 percent in the state of Idaho. Banks will offer both fixed and variable rates, so you’ll need to do your homework and determine if it’s worth spending more on a stable amount over time or risk hoping for lower payments with a variable rate. Repayment is done the same way it would be if you had a credit card. If you draw on any amount within your account, you’ll need to pay back that full withdrawal with interest included. Ask your bank about fine print details before signing any paperwork.