Why should I consider BECU Loan Payment Protection?

• Reduces the financial burden on your family should you die, become disabled or lose your job
• Protects the first two borrowers named on the loan
• Easy enrollment, simple eligibility requirements, and fees are included in monthly loan payment
• You can add Loan Payment Protection to your loan at anytime

How do I apply for a BECU loan?

You can apply for a BECU loan in any of the following ways:

• Log in to Online Banking and select the Loans and Credit Card tab to get to the online application.
• Use Loan Choice, our automated touch-tone service, by calling 206-439-7000 or 800-527-3301.
• Apply by mail. Print a Credit Application Packet, complete, sign, and return it to any BECU location.
• Call a BECU Loan Representative, Monday through Friday, at 206-439-5700 or 800-233-2328.
• Visit any BECU location.

What is BECU Loan Payment Protection?

BECU offers this optional debt cancellation program to help safeguard your family from financial stress if you’re injured or lose your job. Package options include: life, disability, family leave, and involuntary unemployment. The cost is based on the package options you choose and your monthly outstanding loan balance.

Contact BECU for more information on package maximums, limitations, and exclusions.

My spouse works. Why should I get BECU Loan Payment Protection?

Many budgets and lifestyles rely on two incomes. Calculate the cost of your basic living expenses for three or more months to determine if you could meet your financial obligations on one income alone.

Can I make my payment from another financial institution?

Currently BECU does not offer automatic payment from another institution directly to your BECU loan account. We do, however, offer automatic transfers from another institution to your BECU savings or checking accounts that could be transferred to make your scheduled automatic payment. This transfer date needs to be scheduled four days prior to your BECU loan payment due date.

Auto Loans

What should I look for in an auto loan?

Compare rates and terms of different lenders. Most new auto loans carry four- to five-year terms, but you can often adjust the term to fit your needs. A shorter term loan generally results in a higher monthly payment than a longer term loan, but longer term loans accrue more interest. Overall, it's less expensive to choose a shorter term if you can afford the payments. When comparing auto loans, ask about:

Loan processing fees
Some financial institutions charge loan processing fees while other lenders, such as BECU, process your loan at no cost.

Annual Percentage Rate (APR)
The APR is the cost of credit of your loan as a yearly rate. The percentage is calculated based on all the finance charges, loan amount, and term.

If I put more money down on a vehicle do I get a better payment or rate?

Putting money down on a vehicle positively affects your monthly payment amount because the amount financed would be less. BECU determines the rate for the auto loan based on the year of the vehicle, repayment period and your current credit status, not on the amount financed.

I have an auto loan pre-approval in place. What do I do when I find a car to buy?

When you find a vehicle you’d like to purchase, we need the following items:

• If you are purchasing a vehicle from a dealer, we need the purchase order.
• If the purchase is through a private party, we need a copy of the vehicle’s current registration and an acceptable bill of sale.

Why are vehicles with 100K miles or more not eligible to be financed as an auto loan?

BECU is consistently trying to provide the best value to our members, and we have found that autos with more than 100K miles can be a higher risk mechanically and financially. BECU does offer other options for your lending needs, such as a Home Equity Loan or a Personal Line of Credit. Either of these could provide you with the available cash to purchase an auto with more than 100K miles.

Home Equity Loans

Can I lock in the interest rate on all or part of my Equity Advantage account?

Equity Advantage is two accounts in one, offering both the convenience of a variable rate home equity line of credit and the stability of a fixed-rate home equity loan. You can use as much of your available credit as you like at the variable rate, and you can lock-in all or part of the remaining available credit at a fixed rate. There are no prepayment penalties or annual fees, and the interest you paid may be fully tax-deductible.*

*Consult tax advisor regarding tax deductibility.

What can I use my home equity loan for?

Almost anything. Make home improvements, pay for college, consolidate debt, buy a new car, or go on vacation.

How do I know how much my home is worth?

Just estimate the value to the best of your ability. We'll determine the current value of your home during our valuation of the property.

How much of my home's value will you lend?

For customers who qualify, we lend up to 90% of the home’s value. Rates and financing offered vary based on the available equity in the property, loan amount, and credit worthiness.

Do you offer home equity loans on mobile homes?

Yes, as long as it is title eliminated (connected permanently to the property), is a double wide, and was built in or after 1976.

Home Loans

What is a reverse mortgage?

A reverse mortgage is a loan in reverse, where the lender pays you, enabling you to turn the value of your home into cash*. The loan is repaid when you sell your property, move or pass away. A reverse mortgage is not for everyone, but it may be a solution for some homeowners who are 62+ and are looking for a source of ready cash or a steady monthly income.

BECU has partnered with Golden Gateway Financial** to help members compare and choose the right reverse mortgage. To learn more, visit Golden Gateway online or call them at 1-888-8CU-REVERSE.

How can I check my home loan account to make sure a payment was posted?

Log in to Online Banking and select the "Loans and Credit Card" tab to find Mortgage Loan Account Information. If you are a first-time user, you will be prompted to register a user name and password.

How do I get my IRS Mortgage Interest Paid tax statement (1098) or find the amount of interest I paid last year?

You can request a copy of your 1098 statement by calling 877-747-2328. You can also find home loan information by logging in to BECU Online Banking and selecting the “Loans and Credit Card” tab to find Mortgage Loan Account Information.

In what states does BECU offer mortgage loans?

We offer home equity and mortgage loans in Washington, Oregon, California, Arizona, Kansas, Missouri, Illinois, and Pennsylvania, because they are home to the most BECU members. We are currently reviewing other states and may add them in the future.

Can I convert a construction loan to a regular mortgage loan once construction is complete?

Yes. BECU offers single-close loans that require only one set of fees, one application, and one approval. Once the home is completed you can modify your rate to the current market rate, or if you have an ARM loan, you can convert it to a fixed-rate loan.

In what case are reserves for taxes and insurance included in my payment?

It can depend on the type of home loan, and the loan-to-value ratio of the loan. In most cases, if your loan-to-value ratio is 80% or more you will be required to include reserves in your payment.

Do I have to be a first time homebuyer to qualify for the BECU "HLPR" loan?

No. To be eligible, you can't currently own a home. If you do own a home, it will have to be sold, or the sale closed simultaneously with the "HLPR" loan. A home can't be purchased through the "HLPR" program and be used as a second home or investment property.

What is Private Mortgage Insurance (PMI) and how can I avoid this being added to my loan?

PMI is insurance to protect the lender against loss in the event the borrower defaults on the loan. The premium is paid by the borrower and is included in the mortgage payment. You can avoid having PMI added to your monthly payment if you make a down payment of 20% or more resulting in a loan-to-value ratio of 80% or less.

How do I cancel my PMI?

To cancel PMI, send a written request to:

BECU Mortgage Loan Administration
PO Box 77404
Ewing, NJ 08628

or call 877-747-2328.

What are my options for making home loan payments?

Payments can be made by automatic payment transfers from your account, by check, or through Online Banking.

My homeowner's insurance is paid through my home loan payment and I changed insurance companies. How should BECU be notified of the change?

Ask your new insurance agent to fax a notice of the new policy to BECU Loan Administration at 843-413-7133. After this is received, your policy information will be updated. Any additional questions, call 877-747-2328.

How can I convert my adjustable rate mortgage to a fixed rate mortgage without refinancing?

To find out if your adjustable rate loan is eligible for conversion to a fixed rate, call 877-747-2328.

Lines of Credit

How can I access my line of credit?

You can access your line of credit through Online Banking, 24-hour Telephone Banking, or by calling BECU at 206-439-5700 or 800-233-2328.

Can I use my line of credit for overdraft protection, and are there any fees?

It provides convenient overdraft protection, and there are no annual or transaction fees. All you need to do is write a check from your checking account and funds up to the available credit limit will automatically be transferred from your line of credit in $100 increments.

Can I use my line of credit for more than just overdraft protection?

Yes, you may use the credit for anything you like. You can also use it to consolidate high-rate credit cards or loans, and it’s a good source of emergency cash.

Private Student Loans

What are the requirements and qualifications for a private student loan?

To qualify for a private student loan you must:

• Be the legal age (age of majority) in the state you reside.
• Apply on your own or with a co-borrower. Because private student loans are credit-based, applying with a creditworthy co-borrower may increase the likelihood of your approval and may help you get a lower rate.
• The borrower must be BECU member before loan will fund.
• Student Borrower:
  Must be one of the following:
  • U.S. citizen
  • Be a U.S. permanent resident that holds valid proof of residency (I-151 or I-551 cards).
• Be an undergraduate student enrolled in or attending an eligible institution at least half-time in a degree or certificate program. View a complete list of participating schools.
• Be enrolled in an eligible program (graduate programs or degrees are not eligible).
• Meet all of BECU’s underwriting requirements for borrowers and co-borrowers.

How will the loan funds be received?

After the loan has been certified, the funds will be dispersed directly to the school. If funding is sent by check, the check will be made co-payable to both you and the school. You will be contacted by the school (normally through the school's e-mail address) to endorse the check for deposit to your student account. If funding is sent electronically, the deposit will be handled directly by the school. For any excess funds that may remain after direct school-related costs are paid, the school will issue a refund so that you may buy books or pay for other education expenses (such as off-campus room and board).

What is a Private Student Loan?

Private Student Loans are meant to help you bridge the gap between the cost of education and federal aid you may receive. We recommend that this option should be used when all other federal aid, scholarships and grants have been exhausted. Students can use a private Student Loan to finance tuition and other costs associated with attending college such as books and room and board. A BECU Private Student Loan offers you a cost-savings by offering low interest rates and no origination fees or pre-payment penalties. The BECU Private Student Loan is a certified private student loan facilitated and processed through our partner Credit Union Student Choice, a credit union service organization specializing in private student lending.

How is the amount I borrow calculated?

The school financial aid office determines the total financial aid package for each student by calculating the student’s unmet financial need using the Cost of Attendance (COA) and deducting from this figure the expected family contribution (EFC) and any grants, scholarships, and federal (subsidized) loans the student will be receiving for the current enrollment period. A financial loan officer will be contacted for certification of the loan amount requested; the financial aid officer at your school can increase or decrease the loan amount based on the COA calculation.

How does this Line of Credit work?

A line of credit allows you the borrowers to apply once and make multiple draws over your college career. The loan will be held in the name of the student and co-borrower (if applicable). It will be underwritten up to the cost of attendance ($75,000 maximum, $1,000 minimum) and will be allowed regular disbursement draws up to the school-certified amount.

Do I need to complete a Free Application for Federal Student Aid (FASFA) to receive a private education loan?

No, The FAFSA form is not part of the BECU Private Student Loan application process. However, we recommend that you apply for other financial aid before requesting a Private Student Loan.

What does the loan cover?

This loan is meant to cover the costs that appear in the school’s Cost of Attendance estimates. This may include:

• Tuition
• Fees
• Books
• Room and Board
• Other Related Educational Expenses

How long does it take to get the funds after I am approved?

The school’s financial aid office determines the start date for the enrollment or in-school period. The loan funds are disbursed based on the start date set by the school.

What fees may apply?

• Non-Sufficient-Fund Item fee of $20. (Refer to the Consumer Account Disclosure Agreement for a complete list of deposit account related fees)
• Late Payment fee is 5% of the monthly payment amount.

What are the repayment terms?

While you are in school you may choose one of these options:

• Have full deferment of principle and interest. You pay nothing while you are in school.
• Interest-only monthly payments. You pay the interest your loan is accumulating at a low, monthly rate.
• Principle and interest monthly payments. You pay interest on your loan, as well as making monthly payments on it.

After repayment begins:

• It can be a straight repayment of:
  • 20 years if balance is less than or equal to $40,000
  • 25 years if balance is greater than $40,000
• Or, a graduated repayment for two year.
  • The graduated repayment option temporarily lowers the monthly payment by amortizing the first two repayment years over a 40 year period and then over either 18 or 23 years for the remainder of the loan depending on the balance.

How soon do I have to start paying on the loans after I graduate? What if I don't graduate?

You must begin repayment in 60 months plus a six months grace period from the date the account is opened from the date of school separation/graduation plus the six months grace period. (Whichever comes first).

If you choose to defer payments while attending school, the loan interest accrued during the deferment period will be added to the total principle amount when the loan goes into repayment.