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Essential Information About Using Your HELOC

Have questions about how HELOCs work? You've come to the right place. Navy Federal makes it easy for you to get the information you need regarding your mortgage account. We offer comprehensive digital banking* tools and help you navigate and manage your loan data.

How Do I Sign Up for Automatic Payments?

To enroll in Easy Pay for your HELOC, please complete and submit the authorization form via online banking or using the instructions on the form. Please note—all HELOC automatic payments must be deducted on the first of each month.

Enroll Now in EasyPay through Online Banking

How Do I Increase My HELOC Limit?

To increase the limit of your HELOC, it will be necessary for you to refinance. You may submit an application using the link below.

Apply Now to refinance your HELOC

On a HELOC, the interest is calculated using the following formula:

Average daily balance * interest rate / 365.25 * number of days in the billing cycle

The average daily balance can be located on your monthly billing statement. Your interest rate is equal to the Prime Rate plus a margin, which can be found in the terms of your Note. The Prime Rate fluctuates and can either increase or decrease your total HELOC interest rate, but your margin won't change. When the Prime Rate changes, it would show on your bill in 2 months, because HELOC interest is paid in arrears. For example, if the Prime Rate changes in May, it takes effect for June and would show on your July bill.1

Funds are applied to your HELOC based on the time of the month they're received. If we receive the funds after the current monthly payment has been paid and before the next periodic statement has been generated, they'll be applied to the principal balance of the HELOC. If funds are received after the next periodic statement is generated, the payment will be applied toward the periodic statement as outlined in the HELOC agreement. HELOC periodic statements typically generate on the 5th of each month or earlier, if the 5th isn't a business day.

You may make a HELOC advance online by following these steps:

  1. Sign in to online banking.
  2. Click the “Transfers” tab.
  3. Select “Make a Transfer.”
  4. Select “HELOC” as the account to transfer funds from.
  5. Select your checking account to receive the transferred funds.
  6. Input the amount.
  7. Click “Continue.”
  8. Review and close the Transfer Posting Times notice.
  9. Confirm the transfer was successful via the green banner at the top of the next screen. Click “Done.”

You can also make an advance by writing a check, using your HELOC credit card or submitting a signed, written request to us through online banking or by mail at P.O. Box 3300, Merrifield, VA 22119.

In order to pay down or pay off a HELOC loan, you must request a quote. Please contact the Mortgage Servicing Support Department at 1-800-531-7174, ext. 43434, option 2, to obtain a quote. 

A paydown is when the HELOC is paid to a zero balance, but it remains open for future use. A payoff is when the entire balance and fees are paid, the HELOC is closed, the lien is released and the credit line cannot be used again in the future.

A HELOC may be frozen for a few different reasons. When we freeze a HELOC, we'll mail a letter detailing the reason for the freeze to the address on file. If you have additional questions, please contact the Collateral Risk Department by phone at 1-800-243-9334, option 5, by email to or by signing in to your Navy Federal account to send us an eMessage. To unfreeze your HELOC, all borrowers on the loan must submit a written request to initiate the freeze appeal and review process.

The draw period is the time during which you may advance funds from the HELOC. For standard HELOCs, the monthly payment during the draw period is the greater of 1% of the new statement balance or $100.00. For interest-only HELOCs, the payment during the draw period only includes the monthly interest charge. The repayment period begins once the draw period ends. During this time, advances are no longer allowed, and you'll make monthly payments until the loan is paid in full or the maturity date is reached. For standard HELOCs, the payment is 2.5% of the balance during the repayment period. For interest-only HELOCs, the payment is 1.75% during this time. At the maturity date, any remaining balance on the HELOC must be paid in full.



Home Equity Interest-Only Lines of Credit are variable-rate lines. Rates are as low as 7.500% APR and are based on an evaluation of credit history, CLTV (combined loan-to-value) ratio, line amount and occupancy, so your rate may differ. The plan has a maximum APR of 18%. Line amounts are up to $250,000 and the closing costs that members must pay typically range between $300 and $2,000. The closing costs depend on the location of the property, property type, and the amount of the Equity Line. Members may borrow against their available credit line for a period of 20 years, after which any existing balance must be paid in full within the following 20 years. Payments are interest only for 20 years and then change to principal and interest for the remaining 20 years.  Rates are subject to change—information provided does not constitute a loan commitment.

Home Equity Interest-Only Lines of Credit are available for primary residences and second homes. Primary residences are owner-occupied, principal residences only. Second home properties must be owner-occupied at some point during the year.

All lines for amounts less than $25,000 require a 1.00% increase in APR.

Second home lines require a 1.00% increase in APR and may be subject to other restrictions.

You must carry homeowners insurance on the property that secures this plan. 

Home Equity Lines of Credit are not available in Texas.

Lifetime Floor: The minimum APR that can apply during the Home Equity Line of Credit Plan is 3.99%. Our Home Equity Line APR varies based on the U.S Prime Rate and is updated to the published rate in the Wall Street Journal on the first workday of every month.