**IMPORTANT**
**HELOC RATE INCREASES FOR CURRENT HELOC LOANS IN 2024**
The index on the HELOC loans is based on your credit score at the time of application. The rates range from Prime Rate – ½ to Prime Rate + ¾. The Prime Rate has increased 5.25% since March 16, 2022; however, the credit union only raised HELOC rates 2% in 2022 and 2023 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 & 2023, July 1, 2022 & 2023, and September 1, 2022 & 2023. That is a total increase of 4% while the Prime Rate has increased 5.25%.
The Board of Directors decided not to raise rates after the March 16, 2022 increase of .25% and thereby lowered the best HELOC rate to Prime Rate – ½ meaning that your HELOC rate should increase by a total of 5%.
5.25 Prime Rate increase - .25% not increased on 3/26/2022 = 5% Total Increase
In the past the following schedule was used but since the Board of Directors also decided not to raise the HELOC rate .50% on June 1, 2024, your rate will increase 1% on July 1, 2024.
Date Increase Amount
June 1, 2022/2023 .50%
July 1, 2022/2023 .75%
September 1, 2022/2023 .75%
**Rates will increase according to the schedule above for HELOC loans closed before March 1, 2023.
THIS WILL BE THE ONLY HELOC RATE INCREASE FOR 2024 IF THE PRIME RATE DOES NOT INCREASE.
IF THE PRIME RATE DECREASES BELOW 8.5%, YOUR HELOC RATE WILL BE ADJUSTED ACCORDINGLY