Using your home's equity as leverage might be a great solution for you. Because home equity line of credit (HELOC) loans use 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 in your taxes (consult your tax advisor).
If you have a HELOC at another institution, it's a great time to consider refinancing with BECU because you'll pay no origination fees and enjoy our great, low rates.
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 loan” car loan or home loan), you simply borrow as you go, taking as little or as many funds as you need (up to your limit). 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 some more– and only pay interest on the amount you take. Once the draw period is up, you can no longer draw funds and begin paying on the remaining balance owed.
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 —up to three fixed-rate advances can be active at once.
Take advantage of the convenience and flexibility a HELOC offers. Explore your options by calling: 800-233-2328, or visiting any BECU location. You can make an appointment with a member consultant in advance.
*The rate for the Home Equity Line of Credit (HELOC) is based on the highest Prime Rate as published in the Wall Street Journal as of the date of any rate adjustment plus a margin (3.99% variable APR as of 3/01/2017 ). Fixed Rate Advance lowest rate advertised is based on 70% CLTV, owner occupancy and exceptional credit. The actual rates for the HELOC and FRA may be higher than the advertised rate for loans exceeding 70% combined-loan-to-value (CLTV) or if you have lesser creditworthiness or if property is not owner occupied. Not every applicant will qualify. An Automated Value Model (AVM) may be obtained in lieu of an appraisal at no cost to the member.
Owner occupied property must be located in one of the following states: WA, OR, CA, AZ, KS, MO, ID, IL, PA and SC. Non-owner occupied 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 greater 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.