Home Equity Line of Credit as Low As
APR Effective 7/1/2019*
Home Equity Line of Credit
Fixed Rate Advance
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:
- No application fee
- No origination fee, potentially saving you hundreds1
- Loans up to $500,000
- No appraisal costs, title insurance fees, document mailing fees, escrow fees or pre-payment penalty fees1
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
- Open-end loans: HELOCs are open ended meaning you borrow as you go - instead of borrowing a set amount of funds all at once, you withdraw and repay as needed. Minimum draw amount is $100.
- Draw period: HELOC's have a 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.
- Repay period: At the end of the loan, HELOC's go into a 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 Advance
- You can take out any sum up to your HELOC maximum at any time up to your loan limit. 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
Frequently Asked Questions
Expand How do I access funds?
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.
2Information contained on this website does not constitute legal or tax advice. Individuals should consult with their financial adviser and/or attorney for advice.