**HELOC Rate Increases for current HELOC Loans in 2023**
The index on the HELOC loans is based on your credit score at the time of application. The rates ranges from Prime Rate - 1/2 to Prime Rate + 3/4. Prime Rate increased 4.25% in 2022; however, the credit union raised HELOC rates 2% as part of the HELOC agreement which states that rates cannot increase or decrease more than 2% in any one year period. Rates were raised on June 1, 2022, July 1, 2022 and September 1, 2022. Since the Prime Rate has increased over 2% in 2023, the HELOC rates will increase based on the following schedule in 2023.
|June 1, 2023||.50%|
|July 1, 2023||.75%|
|September 1, 2023||.75%|
That would conclude the rate increases for 2023 based on the 2% limit.
If the Prime Rate decreases below 7.5% in 2023, your HELOC rate will be adjusted accordingly.
**Rates will increase according to the schedule above for HELOC loans closed before March 1, 2023
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