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Is Your Home Equity Line of Credit Draw Period Expiring?

We want to make sure that you have all of the information that you need to prepare for this account transition.

Ten years have passed since many homeowners across the U.S. obtained a HELOC. These HELOCs are approaching their end-of-draw period and are nearing the approach of the 15-year repayment period.  We want to make sure that you have all of the information that you need to prepare for this account transition. 

What is a draw period?

This is the period of time that you can draw funds from your HELOC up to your credit limit. The draw period on your HELOC is for 10 years and then you enter the 15-year repayment period. During the draw period you are only required to make the minimum payment of $100 or interest-only payments, whichever is greater. 

Questions?

  1. Call a BECU representative at 800-233-2328 x 2840 
  2. Visit your local Neighborhood Financial Center 

You can schedule an appointment ahead of time to speak with a BECU representative. Pick a day and time that works best for you during our regular business hours.


What to expect when your HELOC draw period ends?

  1. You will no longer be able to access funds from your HELOC once your draw period expires.
  2. If you have a balance on your account, your new required minimum payment will now include principal and interest. If you have only been making interest-only payments, then your payment may be significantly higher. Please note that the APR will continue to be variable and based on the Wall Street Journal prime rate plus or minus your margin which was provided with your original loan documents.

Do you have a balance on your account? Here are a few options for you:

  1. Start repayment on your HELOC balance. Your new monthly payment will now include principal and interest; therefore, your monthly payment may be significantly higher if you have only been making interest-only payments. The length of your repayment period should not exceed 180 months. Please note that the APR will continue to be variable and based on the Wall Street Journal prime rate plus or minus your margin which was provided with your original loan documents.
  2. Apply for a new HELOC. This process is similar to your initial application and can take up to 60 days to process. If approved, your new HELOC could pay off the balance on your existing account and you will enter a new draw period. When your existing HELOC closes, there is a reconveyance fee assessed by the county that's normally around $100 or less.
  3. Apply for a new mortgage. This will pay off your existing mortgage and HELOC and consolidate both into a new mortgage. The process is similar to your initial application and can take up to 60 days to process. When your existing HELOC closes, there is a reconveyance fee assessed by the county that's normally around $100 or less. 

What are your options if you do not have a balance?

  1. Let your HELOC account expire and close. You will no longer be able to draw funds from your HELOC and the account will close. We will send you a follow-up letter after the account closes and the lien is released. Please note that when your HELOC closes, there is a reconveyance fee assessed by the county that's normally around $100 or less.
  2. Apply for a new HELOC. If you want to maintain the comfort of knowing that you can access funds from your HELOC as needed, then you can re-apply for a new HELOC account. This process is similar to your initial application and can take up to 60 days to process. If approved, you will enter a new draw period. Please note that when your existing HELOC closes, there is a reconveyance fee assessed by the county that's normally around $100 or less.


Other options may be available depending on your specific situation. We are here to help you explore all of your options.

Learn more about these options

  1. Call a BECU representative at 800-233-2328 x 2840 
  2. Visit your local Neighborhood Financial Center 

You can schedule an appointment ahead of time to speak with a BECU representative. Pick a day and time that works best for you during our regular business hours.

Where to check the details of your account?

Knowing the specific details of your account will help you prepare. To find your outstanding balance, current interest rate, payment amount and due date, go to Online Banking and select your Equity Advantage account from the Account Summary page or view your monthly statement.

Do you need assistance?

We understand the impact that this transition can have on a budget. As a BECU member, we want you to know that we are here to help you find solutions for your financial situation. 

Questions?

  1. Call a BECU representative at 800-233-2328 x 2840 
  2. Visit your local Neighborhood Financial Center 

You can schedule an appointment ahead of time to speak with a BECU representative. Pick a day and time that works best for you during our regular business hours.