home equity line of credit, is it right for you?

every situation is different

Looking to consolidate debt, make a large purchase, or just have a convenient source of funds when you need it? A home equity line of credit (HELOC) might be a good option to consider.

How does a HELOC work? 

A home equity line of credit is unique in that it's an “open-end” loan. Instead of loaning a set amount of funds all at once (such as a “closed-end” car loan or home loan), you simply borrow from a HELOC as you go, taking as little or as many funds as you need within your total loan amount. Such flexibility can be useful when the amount you need is uncertain, like for home repairs.

You can continue to borrow, pay down, and borrow again, and only pay interest on the amount you take. However, once the draw period expires, you can no longer withdraw funds and will only be able to begin paying on the remaining balance owed. Before signing on the dotted line, consider when the loan's draw period is over and be sure you'll withdraw what you need before that date. 

Flexibility of funds 

Homeowners love HELOCs for several reasons; among them being that they address a lot of financial worries or unexpected expenses. Because a HELOC uses the equity in your home to secure funds, borrowing rates tend to be lower – a great option for any loan, especially if you're taking out a HELOC to consolidate higher interest–rate debt. You may even be able to deduct the funds when doing your taxes, but consult your tax advisor to be sure. Every situation is different!

Refinance your HELOC with BECU 

If you have a HELOC at another institution, it's a great time to consider refinancing with BECU. You'll pay no origination fees, no appraisal fees, no closing fees, and no pre-payment penalties. Plus, you'll enjoy some seriously low rates.

Fixed-rate options 

A BECU HELOC also offers the useful benefit of locked-rate flexibility. You can opt to lock in a fixed rate when you withdraw funds from your line of credit, and up to three fixed-rate advances can be active at once.

Take advantage of a BECU HELOC and get:

  • Low APRs on fixed- and variable-rate options
  • Up to three fixed-rate advances can be active at once
  • No origination fee, which means no application, no appraisal, and no closing fees
  • No pre-payment penalties
  • Consolidate high interest–rate debt at a lower rate
  • Protection from rising rates with our fixed-rate option*. Up to three fixed-rates advances can be active at once. 
  • Funds whenever you need, up to your available credit limit – simply transfer funds to your BECU checking account
  • Funds may be tax deductible! Consult your tax advisor.

Get Started 

If you're a homeowner interested in opening a HELOC, we're here to help. Explore your options by calling 800-233-2328, or visiting any BECU location. You can make an appointment with a member consultant in advance.  

Primary residence property must be located in one of the following states:  WA, OR, CA, AZ, KS, MO, ID, IL, PA and SC. Rental/Investment property must be located in the State of Washington.  Home Equity Line of Credit APRs do not include cost and rate may vary monthly (maximum 18% APR).  During the credit advance draw period, payments equal monthly payments of interest, subject to lesser of $100 or your balance and principal is not reduced.  At the end of the draw period, your monthly payment will increase equal to the principal and interest amount necessary to pay the loan balance over the remainder of the loan term.  

*Home Equity Line of Credit Account Fixed Rate Advances provide for up to 15 years of monthly principal and interest payment, depending on the amount advanced.  Fixed Rate Advances are a subaccount of a Home Equity Line of Credit (HELOC).


Fees and Costs:  in normal circumstances, Borrower will not have to pay any fees to open the HELOC, but will be required to pay for hazard insurance (include flood insurance, if applicable).  Borrower must pay for optional services (e.g., retaining an attorney not required to open a HELOC).  In South Carolina, where the law requires use of an attorney, BECU will be solely responsible for paying all attorney's fees and costs necessary to open the HELOC, and will perform this responsibility fully by paying all reasonable attorney's fees and costs related specifically to the closing based on rates typically charged by attorneys in the local market for the closing of similar HELOC transactions.  Borrower will be responsible for paying state and local taxes, Western Union/speedpay fees, and fees for reconveyance or mortgage satisfaction, late payments, and subordination of similar change. Borrower must pay all charges related to any existing loan paid off by the new BECU HELOC (e.g., a prepayment penalty or payoff demand fee imposed by a previous lender).  Borrower also must pay per diem interest.  Terms and conditions are subject to change without notice.