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We'd like to welcome Heartland Tri-State Bank to the Dream First family.

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Dream First Bank

Home Equity Loans

Homeownership is not just about having a place to call your own, it's about building a valuable asset over time. At Dream First Bank, we recognize the potential that lies in the equity you've accumulated in your home. A home equity loan offers a great avenue to tap into this value, providing you with the means to finance a variety of needs.

  • Leverage: Utilize the wealth you've built in your home.
  • Low-Interest Rates: Typically lower than most personal loans or credit cards.
  • Flexibility: Use the funds for home improvements, debt consolidation, education expenses, or even a dream vacation.
  • Tax Benefits: Interest may be tax deductible (consult your tax advisor).

Start making the most out of your home's value with a Dream First Bank home equity loan today. Learn more below or check out our helpful FAQs for many of the common questions customers have about home equity loans. We also encourage you to download this helpful guide on home equity loans, provided by the Consumers Financial Protection Bureau.

Home Equity Lines of Credit (HELOC)

Need ongoing access to funds? Dream First Bank's home equity line of credit (HELOC) provides a flexible solution. Borrow as much or as little as you need, when you need it, similar to a credit card. Pay interest only on the amount you use, and reuse your credit line as you repay. Discover the advantages of our HELOC.

  • Flexibility: Borrow what you need, when you need it.
  • Interest Only on Used Amount: Only pay interest on the funds you draw.
  • Revolving Credit: As you repay, your credit availability replenishes.

Discover financial freedom with Dream First Bank's HELOC and tap into your home's equity with ease and flexibility!

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Fixed-Term Equity Loans

Unlock the power of your home with Dream First Bank's fixed-term home equity loan. This product provides a set amount loan with a fixed monthly payment amount. This type of loan is perfect for large, immediate expenses like renovations or major purchases. Enjoy the certainty of fixed interest rates and predictable monthly payments. 

Here's why our home equity loan could be the perfect choice for you:

  • Fixed Interest Rates: Enjoy stability with the same payment every month.
  • Large Expenses: Ideal for significant one-time costs.
  • Easy Budgeting: Predictable payments simplify financial planning.

Invest in your dreams today with our fixed-term home equity loan and let your home work for you!

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Stop by any of our convenient Dream First Bank branch locations to chat with one of our lending experts. We'll take the time to understand your particular needs and ensure we help you select the right type of equity loan for your individual situation.

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Excited to Welcome Heartland Tri-State Bank to Dream First Bank!

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Home Equity Loan FAQs

Do you have questions about home equity loans? If so, we've got good news - and good answers. But if your question is not listed below, be sure to contact us and we're happy to help get you what you're looking for.  

What is a Home Equity Line of Credit (HELOC)?

A home equity line of credit, also known as a HELOC, is a line of credit secured by your home that gives you a revolving credit line to use for large expenses, to make home improvements, or even to consolidate debt on other loans, or credit cards. 

How does a HELOC work?

With a HELOC, you’re borrowing against the available equity in your home and the house is used as collateral for the line of credit. As you repay your outstanding balance, the amount of available credit is replenished – much like a credit card. This means you can borrow against it again if you need to, and you can borrow as little or as much as you need throughout your draw period, up to the credit limit you establish at closing. At the maturity of the loan, the balance must be paid in full.  

Is this a HELOC a fixed or variable rate?

A HELOC has a variable rate.

When you have a variable interest rate on your home equity line of credit, the rate can change from month to month. The variable rate is calculated from both an index and a margin.

An index is a financial indicator used by banks to set rates on many consumer loan products. Most banks, including Dream First Bank, use the U.S. Prime Rate as published in The Wall Street Journal as the index for HELOCs. The index, and consequently the HELOC interest rate, can move up or down.

The other component of a variable interest rate is a margin, which is added to the index. The margin is constant throughout the life of the line of credit.

As you withdraw money from your HELOC, you’ll receive monthly bills with minimum payments of the interest due.  Payments may change based on your balance and interest rate fluctuations, and may also change if you make additional principal payments. Making additional principal payments when you can will help you save on the interest you’re charged and help you reduce your overall debt more quickly.

What can you use a HELOC for?

Anything you choose. Such things can include but are not limited to home renovations, pay off expensive debt, start a business, make major purchases, managing financial emergencies, college expenses, or buying a car.

How much can I qualify for on a HELOC?

To qualify for a HELOC, you need to have available equity in your home, meaning that the amount you owe on your home must be less than the value of your home. You can typically borrow up to 80% of the value of your home minus the amount you owe. Also, a lender generally looks at your credit score and history, employment history, monthly income and monthly debts, just as when you first got your mortgage.

What are HELOC closing costs?

Closing costs are fees and charges that the lender and third-party services impose to secure and process a home equity line of credit. HELOC closing costs are typically lower than primary mortgage closing costs.

Do I pay interest on the money I don’t use it?

No, you don't!

How soon can you get a home equity line of credit after purchase?

If you have enough equity at the time of closing your home purchase, you can get a HELOC in as little as 30 to 45 days.

Is a HELOC considered a 2nd mortgage?

Yes, it is. 

What are the benefits of a HELOC?

Using the equity in your home is a great way to improve your property, consolidate high-interest debt, finance important life events, or even cover unexpected emergencies. The interest rate you get is often lower than with unsecured loans,  and maybe tax deductible.  Please consult your tax advisor regarding interest deductibility as tax rules may have changed.

NMLS Numbers

  • Dream First Bank NMLS # 435183
  • Michelle Becker NMLS #: 754462
  • Matthew Bennett NMLS #: 1683711
  • Chris Floyd NMLS #: 707701
  • Andrew German NMLS #: 1411673
  • Aimee M. Holguin NMLS #: 2159100
  • Brandy Littell NMLS #: 2317364
  • Cindy D. Messenger NMLS #: 680491
  • Corie Miller NMLS #: 2213083
  • Deysy Miramontes NMLS #: 2159147
  • Rosa E. Rivera NMLS #: 697677
  • Vicky Griggs NMLS #: 655354
  • Caleb L. Woods NMLS #: 1411711

Dream First Bank

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