Have a question about your home equity line of credit with Royal Credit Union? Our Mortgage Servicing team assists Members with their home equity lines of credit in addition to mortgage loans. Whether you're wondering about your payment options or have an interest question, our Mortgage Servicing team is here to help.
You have lots of ways to make Home Equity Line of Credit payments. The best option is to set up automatic payments as part of the HELOC closing process. You can also set up automatic payments later by using our direct payment authorization form. This type of automatic payment allows us to adjust the payment amount to match your amount due even if it changes from month to month. This type of automatic payment is not visible within online banking or our mobile app.
You can configure recurring automatic payments to your HELOC from online banking or our mobile app, but it's important to note that this type of automatic payment will not adjust to match the amount due if it changes from month to month.
You may also make one-time payments each month by mail, phone, or online.
To determine the amount due for your HELOC, look for the amount due line on your monthly statement. If you have elected to have statements provided electronically, you'll receive an email when your statement is ready for review in online banking or our mobile app. Otherwise you'll receive a paper statement in the mail.
HELOCs are unique because during the draw period the amount due is based on the interest charge on your balance. If you borrow more funds, it will affect the interest charge, meaning the amount due will change from one month to the next. To set up automatic payments that always pull the amount due even if it changes, use our direct payment authorization form or call us.
If you set up recurring automatic payments using online banking or our mobile app, these payments will not change each month even if your amount due changes. This is why we recommend using the direct authorization form provided above or contacting us to set up automatic payments for you.
Other HELOC Questions
You can access Home Equity Line of Credit funds in several ways:
- The easiest option is to transfer funds from your HELOC to another Royal deposit account using online banking or our mobile app. This type of transfer can also be completed using our Computeller bank-by-phone service.
- Another option is HELOC checks. These are paper checks that let you write a check against your Home Equity Line of Credit just like any other account.
- You can have your HELOC set up as a draw source for your checking account. If a transaction occurs that would cause your checking account balance to go below zero, funds will automatically be transferred from your draw account to keep the balance positive. This means you can write checks from your checking account and the money will be taken from your HELOC.
- You can also access HELOC funds by receiving cash or a cashier's check at any Royal office.
You will receive a 1098 tax form at the beginning of the year. Because a HELOC is a type of mortgage, this form is a Mortgage Interest Statement that explains how much mortgage interest you paid in the previous year. If you are enrolled in online banking, this form can be accessed there. If you are not enrolled in online banking, you will receive this form by mail.
Adjustable-rate HELOCs will receive a notice of a rate change 20 days before the rate changes.