Chase Reenters Home Equity Lending with New HELOC

Chase has reentered the home equity line of credit (HELOC) market after a five-year hiatus, citing rising home values and homeowner demand for funds. The new HELOC allows borrowers to tap up to 80% of their home's value, with a 30-year term and minimum credit score of 720. The rate environment has shifted since 2020, with HELOC rates at 8.10% as of August 27, their lowest level since May.

Chase has reentered the home equity line of credit (HELOC) market after a five-year hiatus, responding to rising home values and homeowner demand for funds. The new HELOC product, available in every state except Texas, allows borrowers to tap up to 80% of their home's value, with a 30-year term and a minimum credit score of 720. This move comes as the rate environment has shifted since 2020, with HELOC rates at 8.10% as of August 27, their lowest level since May [2].

The new Chase HELOC offers a 10-year interest-only period followed by a 20-year repayment period. Credit lines start at $25,000 and go up to $400,000, with a variable rate based on the Prime Rate. The HELOC requires a minimum credit score of 720 to qualify, and borrowers can access their funds for three years, with an origination fee of up to 4.99% of the credit limit [2].

Chase's reentry into the HELOC market coincides with a broader trend of increased home equity lending. The Federal Reserve Bank of New York reported that credit card balances jumped by $27 billion in the second quarter of 2025, indicating that homeowners are seeking ways to manage their debt [1]. The new Chase HELOC could provide a viable option for homeowners looking to consolidate debt or finance home improvement projects.

While the new HELOC offers opportunities for homeowners, it also comes with risks. HELOCs are variable-rate loans, which means the cost of borrowing can rise quickly if economic conditions shift. Homeowners should approach HELOC borrowing with discipline and a plan, consulting with experts to ensure they are not overleveraging [1].

In conclusion, Chase's reentry into the HELOC market presents an opportunity for homeowners to access their equity responsibly. The new product's features, such as a 30-year term and a 10-year interest-only period, offer flexibility for borrowers. However, homeowners should weigh the potential risks and benefits before taking out a HELOC.

References:
[1] https://www.yahoo.com/lifestyle/articles/fed-cuts-may-not-spark-030000154.html
[2] https://www.bankrate.com/home-equity/chase-launches-new-heloc-returning-to-equity-lending/