Your HELOC rate increased because the index on your loan increased.

All our HELOCs are tied to a public index not under credit union control. Most of Advantis’ HELOC loans are tied to the Wall Street Journal Prime Rate (WSJ Prime). When Prime changes, the rate on your loan may also change. 

To set your rate, we add the index value to the margin on your loan disclosed on your loan documents. For example, if the WSJ Prime rate is 3.50% and your margin is 0.90%, the rate on your HELOC will be 4.40%.

Your loan documents will also establish the date the rate will adjust based on changes to the index. Under our current HELOC products, your rate will adjust on the first of the month based on the index value in affect at the end of the prior month. Example: The WSJ Prime rate increases from 3.25% to 3.50% on 12/17 and stays at that rate for the rest of December. On January 1, HELOC rates tied to prime will adjust based on the index value of 3.50%.

An index change may not result in a rate change if your margin plus the index is less than the floor for the loan. Our current HELOC has a floor of 3.99%.

As you can tell, HELOC rates can change quickly, and you will not receive a notice of the change. However, you will see the rate change on your statement.