Home Equity Line of Credit as Low As
APR Effective 1/1/2020*
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 open and maintain BECU membership with a Member Share or Member Advantage savings account; not all applicants will qualify. Financing is subject to credit approval and other underwriting criteria. The specific 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; not all applicants will qualify. BECU must be able to perfect a first or second mortgage lien on your one-to-four family residence. During the credit advance draw period, your monthly payment will equal the amount of accrued interest, subject to the lesser of $100 or your outstanding balance. Because the minimum monthly payment during the draw period is interest only, your principal balance may not be reduced. At the end of the draw period, your monthly payment will increase and equal the amount of principal and interest necessary to pay off the loan balance by the end of the 180 month repayment period. 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). Additional state or local mortgage fees or taxes may apply. A reconveyance fee is charged to remove BECU from the property's title when a HELOC is paid off and closed. Reconveyance fees are paid to prepare and record the Reconveyance with the county in which the property is located and varies by county. Reconveyance fees are not BECU fees and are not waivable. Loan programs, terms, and conditions are subject to change without notice. An Automated Value Model (AVM) may be obtained in lieu of an appraisal at no cost to applicant. 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. 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. Current HELOC rates range from 4.34% APR - 9.59% APR as of 11/1/2019 and is subject to change. APRs do not include costs and rate may vary monthly (maximum 18% APR) and are subject to increase after account opening upon default. The actual rate may be higher than the advertised rate for loans exceeding 70% combined loan-to-value (CLTV) or if you have lesser creditworthiness. Rates are subject to change without notice and assume a borrower with excellent credit.
2Information contained on this website does not constitute legal or tax advice. Individuals should consult with their financial adviser and/or attorney for advice.