Home Equity Line of Credit (HELOC)
Use a HELOC to consolidate debt, improve your home or make a large purchase.Apply Now
Choosing a HELOC from BECU
Home equity lines of credit (HELOC) allow you to borrow money using the equity or value of your home as collateral. HELOCs may be a better alternative than a credit card, or personal loan, as rates tend to be lower (as the loan is tied to your home), and interest paid may be tax deductible.
HELOC Benefits and Features
Our home-equity loans stand out in more ways than one:
- Interest rates start at 5.49% APR; Fixed rate advance at 5.74% APR1
- Pay no origination fee, potentially saving you hundreds2
- Pay no appraisal costs, title insurance fees, document mailing fees, escrow fees or pre-payment penalty fees2
Uses of a HELOC
- Home improvement projects
- Debt consolidation (including high interest credit cards)
- Tuition or other ongoing expenses over time
- Home repairs, such as windows, new roof, energy efficient projects
How HELOCs Work
- Borrow as you go: HELOCs are an "open-end loan" - instead of borrowing a set amount of funds all at once, you withdraw and repay as needed. Minimum draw amount is $100.
- Start the loan with a lengthy "draw" period - usually several years; you can withdraw funds during this time, and only pay interest on the loan. For example, BECU has a 10-year draw period meaning you can withdraw funds from the loan for 10 years. If you were approved for a $50,000 HELOC, you could withdraw (and pay back) from that $50,000 amount at any time during that 10 years.
- End the loan with another lengthy "repay" period - usually several years; you no longer withdraw on the loan and now repay what's owed. Let's say you borrowed $28,000 of your $50,000 HELOC and already repaid $4,000. You now spend the remaining "repay" period repaying the remaining $24,000 in monthly installments.
Fixed Interest-Rate Advantage
BECU members can take out any sum up to their HELOC maximum at any time. However, there are benefits to locking in the rate on larger sums. Here's how it would work:
- Select any sum of $5,000 or higher (up to the total of your loan amount)
- Elect to fix the rate on a new sum when you have paid off one fixed-rate loan
- Have up to three different fixed-rate loans at one time
Tax Benefits of a HELOC
The interest may be tax-deductible; however, the eligibility depends on various factors. Read this article for additional information3.
- Can I use my rental property to fund a HELOC? Yes. Primary and secondary residences and investment properties are eligible. Investment properties must be located in Washington State.
- How do I access the funds? The line of credit appears as an account in your BECU Online Banking, and you can easily initiate a free, same-day transfer to your checking account.
- Do I receive the loan amount over time? No. It's paid in one lump sum. Like a credit card, you qualify for an amount, then how you choose to use it is up to you - all of it, some of it, or even just a little of it.
- What is the draw period for a BECU HELOC? 10 years.
- How long is the repayment period? 15 years. The new monthly payment includes principal and interest with the repayment not exceeding 180 months. Note: The APR continues to be variable and based on the Wall Street Journal prime rate, plus or minus the margin, which is provided with the original loan documents.
- What can I expect when my HELOC draw period ends if I leave it the way it is? a) You will no longer be able to access funds from your HELOC once your draw period expires. b) If you have a balance on your account, your new required minimum payment includes the principal and interest. c) Your payment may be significantly higher if you have only been making interest-only payments. Please note that the APR continues to be variable and based on the Wall Street Journal prime rate, plus or minus your margin, which was provided with your original loan.
Apply online or at a location near you.
1You must be a BECU member in good standing, comply with our loan program requirements, meet all the underwriting requirements, pay any applicable loan fees and execute all loan closing documents. The specific amount of your credit limit will be determined based on information obtained while processing your application, which includes, but is not limited to, your credit report, your income, occupancy and available equity in your home. Certain restrictions apply. Loans are subject to credit and collateral approval and not every applicant will qualify. BECU must be able to perfect a mortgage lien on your one-to-four family residence. Primary residence and Second Home/Vacation Home property must be located in one of the following states: WA, OR, CA, AZ, KS, MO, IL, PA, ID and SC. Rental/Investment property must be located in the State of Washington. Insurance to protect the property against hazards (including flood insurance, if applicable) is required. Borrower is also required to pay for optional services (e.g. if borrower retains an attorney that borrower is not required to use). In South Carolina, where the law requires use of an attorney, BECU will be solely responsible for paying all attorneys' fees and costs necessary to open the HELOC, and will perform this responsibility fully by paying all reasonable attorneys' 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. Additional state or local mortgage fees or taxes may apply. An Automated Value Model (AVM) may be obtained in lieu of an appraisal at no cost to member. Loan programs, terms and conditions subject to change without notice.;
2The APR for a Fixed Rate Advance (FRA) as of 1/14/2019 is as low as 5.74% APR. FRAs provide for up to 15 years of fixed monthly principal and interest payments, depending on the amount advanced. FRAs are subaccounts of a HELOC. Contact a BECU representative for current information.
3Information contained on this website does not constitute legal or tax advice. Individuals should consult with their financial adviser and/or attorney for advice.