HELOC HERO: Defender of the Future

Curtis was always inspired by his parents—high school sweethearts married for over 50 years. But when his mother became seriously ill, his father had no choice but to sell their home to cover medical expenses. Curtis stepped in to save the day— he transformed part of his own home into a comfortable, beautiful space for his father. 

A HELOC Hero's Journey!

Curtis knew he couldn’t stand by when his father needed him most—his dad had to move in, and Curtis was ready. So, like any true hero, he chose to work with what he had. 

With help from Suffolk Credit Union and a low-rate HELOC, Curtis reimagined part of his home into a peaceful, accessible space for his dad. No cape needed—just heart, purpose, and the power to build a better future. 

A HE What? 

New to the world of HELOCs? 

Let’s break it down. A HELOC is a form of financing that lets you borrow money against your home equity. Your home equity is the difference between the market value of your home and the balance due on your mortgage. You can gain equity in two ways: when you pay down your mortgage principal, and when your property increases in value. 

Here’s a quick example. 15 years ago, Curtis bought her house for $500,000 with a 10% down payment. On her first day as a homeowner, he had $50,000 in home equity. Since then, she’s paid down her mortgage principal by $200,000, leaving a balance of $250,000. Meanwhile, the value of her house has increased to $800,000. 

At Suffolk Credit Union, our home equity products allow members to borrow up to 80% of their home’s value (this is called a loan-to-value ratio, or LTV). In Curtis’s case, that’s $640,000. Subtract the amount she’s already borrowing (her mortgage balance of $250,000), and you get $390,000. That means with a HELOC from Suffolk Credit Union, Curtis was able to access up to $390,000 in cash, which he used to transform part of his home into a safe, comfortable living space for his father. 

HELOCs vs. Home Equity Loans 

Homeowners have two basic options for using their home’s value to finance life’s next chapter: HELOCs and Home Equity Loans. To understand the key distinctions, think of a HELOC like a credit card, and a Home Equity Loan like a traditional mortgage. 

With a credit card, you have a credit limit—say, $10,000—but that doesn’t mean you have to spend it all at once or on a set schedule. Instead, you use funds as needed and only pay interest on what you spend. As you repay, your available credit replenishes—this is known as revolving credit. 

HELOCs work the same way—with one major advantage: our HELOCs allow you to make interest-only payments during the first 10 years (the draw period), followed by monthly payments of principal and interest over the next 20 years. 

Compare that to a Home Equity Loan, which gives you one lump sum upfront—more like a traditional mortgage. You repay that loan in predictable monthly installments over a set term. Home Equity Loans are ideal when you know exactly how much money you need and when you need it—such as for a fixed renovation budget or debt consolidation. 

But for Curtis, a HELOC was the perfect solution. He didn’t know exactly how much creating a living space for his father would cost—or when unexpected needs might come up. With a flexible HELOC from Suffolk Credit Union, he had the freedom to use only what he needed, when he needed it, all while keeping his monthly payments manageable. 

Now, thanks to his HELOC, Curtis transformed his home into a safe, welcoming space for his father—and earned his title as Defender of the Future.  

 

5 More ‘Super Powers’ (Benefits) of a Suffolk Credit Union HELOC 

The main advantage of a HELOC is that you can use it however you want and only pay for what you use. Here are five more valuable perks to consider: 

  1. Save with ‘Super’ Low rates: Enjoy a special intro APR* as low as 5.44% for 15 months, followed by a competitive variable rate as low as 6.75% (as determined by your creditworthiness). 

  1. Forget closing costs: We’ll cover the closing costs, except the appraisal fee, for any HELOC up to $500,000 on a primary residence in New York State.** 

  1. Get approved as Super Speed: At Suffolk CU, we process applications and make loan decisions locally, which helps us provide a quick and convenient process. Many borrowers get their funds within just a few weeks.  

  1. Effortlessly access funds: Once approved, your HELOC will appear as an account within Online Banking. You can make instant transfers to your Suffolk CU checking account or make purchases directly with the convenience checks we’ll provide. 

  1. ‘Power up’ your credit: If used strategically, a HELOC can help you enhance your credit profile. Because it’s secured by property, HELOCs aren’t typically figured into your credit utilization ratio like other forms of revolving credit. Consistent payments can lead to higher scores, and if you use a HELOC to pay off credit card balances, you could get another boost. 

 
 
 

What’s your ‘origin story’?

Become a HELOC Hero  

It only takes a few minutes to start your ‘Hero’s Journey’! Apply for a HELOC online. Any questions? Feel free to give us a call or stop by any branch for personalized guidance from our friendly local team. 

* APR = Annual Percentage Rate. Rates reflect automatic payment discount of 0.25%. Introductory APR is based on your creditworthiness and will range from 5.44% to 8.74% APR. Lines up to $100,000 require minimum $15,000 initial advance and maintain a balance of $10,000 during the time period in which the introductory rate is offered to maintain that introductory rate; lines between $100,000.01 and $250,000 require a minimum $35,000 initial advance and maintain a balance of $25,000 during the time period in which the introductory rate is offered to maintain that introductory rate; and lines between $250,000.01 and $1,500,000 require a minimum $65,000 initial advance and maintain a balance of $50,000 during the time period in which the introductory rate is offered to maintain that introductory rate.  After the 15 month introductory period, APR is based on the Prime Rate as published in the Wall Street Journal plus a margin which is based on your creditworthiness. The minimum rate is 3.00% APR and the maximum rate is 18.00% APR. The HELOC is a variable rate loan. After the introductory period the APR may change monthly. Making minimum payments only may result in a balloon payment. Non primary resident properties will get an increase of 3% to the intro rate.

**Suffolk Credit Union will pay closing costs on Home Equity Loan amounts up to $250,000 on primary residences located in New York State only. Suffolk Credit Union will pay closing costs, except the appraisal fee, on Home Equity lines-of-credit amounts up to $500,000 on primary residences in New York State only. For Jumbo HELOCs on primary residences, the borrower pays for title insurance and the mortgage tax on the amount over $500,000. The member is responsible for all closing costs on secondary and investment properties and all properties located outside of New York regardless of the amount of the loan. If you pay off and close your loan less than 36 months from loan origination date, you will be required to reimburse all closing costs paid by Suffolk Credit Union. For a Home Equity Line-of-Credit: Minimum loan amount is $20,000. Maximum loan amount is $1,500,000. The length of the repayment period will depend on the balance at the time of the last advance you obtain before the draw period ends. Monthly payments required during both the draw and repayment periods. During the 10-year draw period your minimum monthly payment will equal the finance charges (interest) that accrued on the outstanding balance during the preceding month. Payment calculation is based on 20-year amortization. Hazard insurance is required. Available on 1–4 family primary or secondary residences, excluding mobile homes, co-ops and homes for sale, under construction or on leased land. Applicants who are not approved at these rates may be offered credit at a higher rate.

Rates and terms are subject to change without notice. All offers of credit are subject to credit approval requirements and applicants may be offered credit at higher rates and other terms. Loan-to-Value (LTV) and/or Combined LTV (CLTV) restrictions apply. Available on 1- to 4-family primary or secondary residences, excluding mobile homes, co-ops and homes for sale, under construction or on leased land. Hazard insurance is required on all loans secured by real property (flood insurance may also be required where applicable). Membership at Suffolk Credit Union is required by opening a minimum $5 share savings account at or prior to HELOC account opening.

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