BECU only offers one home equity product, a home equity line of credit (HELOC) with flexible terms and no lender fees. While this HELOC comes with many advantages, as a credit union product, you must be a member to take advantage — and membership is mostly limited to the Pacific Northwest.
BECU’s HELOC is best for borrowers with at least 15% to 20% of equity in their homes and want a revolving line of credit to tap into over 10 years instead of a lump sum loan. Unlike some HELOC lenders, BECU offers both the traditional variable-rate option and the ability to draw larger sums into a fixed-rate advance.
To take advantage of the fixed rate, you need to draw a minimum of $5, 000 up to the maximum of your credit line. The amount of the line that you “fix” is converted into a fixed-term loan with a repayment period of 15 years.
How Does A Heloc Work?
The interest rate on BECU’s fixed advances starts at 4.49% as of May 2022. While this is higher than BECU’s and other lenders’ introductory variable rates, it guarantees a fixed monthly payment that isn’t affected by interest rate fluctuations.
The biggest obstacle to taking advantage of this product is the credit union’s limited membership requirements. Also, customer reviews of BECU lean towards the negative, with many online reviewers complaining about poor banking service.
However, the loan officer I spoke to seemed willing to work with less-than-stellar credit. If BECU doesn’t have what you need, compare more HELOC lenders to find the right fit.
How To Decide If A Heloc Is Right For You
BECU only offers a variable-rate home equity line of credit (HELOC) but with a fixed-rate option built in. Once you’re approved for your HELOC, you can choose to take out lump sums of $5, 000 or more as fixed-rate advances.
You’re allowed up to three active advance subaccounts at once, and you can select your own term to pay them off, up to 15 years. And you don’t have to pay a fee to take the advance or to pay it off early.
BECU doesn’t charge any of the normal lender fees associated with home equity products and even covers the cost of attorney fees in South Carolina, where an attorney is required. You also pay no maintenance fees, and there aren’t any costs associated with taking a fixed-rate advance.
Ravenna Credit Union
Under normal circumstances, the only fee you’ll face from BECU is after the HELOC is paid off — a reconveyance fee to remove BECU from the lien on your title which typically costs from $125 to $235. You might also have to pay third-party fees, such as state and local mortgage taxes and recording fees, which BECU estimates could range from $150 to $775.
These fees are subject to change, so check your loan agreement to make sure you have the most up-to-date numbers to avoid any surprises.
BECU is accredited with the Better Business Bureau (BBB) and has an A+ rating for how it has handled multiple customer complaints over the last three years. However, customers on the BBB site and Trustpilot give the company a less favorable rating, complaining about poor service and the inability to set up basic services like autopay online.
Printable Home Equity Calculator Forms And Templates
More happy customers praise BECU’s customer service and smooth loan processes but complain of having trouble resolving fraudulent charges and the difficulty working with the bank when the customer lives far away from a physical branch. Overall, the reviews are mixed and lean towards the negative. But these reviews are for the bank as a whole, not just the lending department.
BECU doesn’t list its requirements to qualify for a HELOC, but you must be a member of the credit union to access your credit line. You must meet one of the following membership requirements:
You don’t need to be a member to apply for a HELOC on the phone or in person, but you need to be eligible because you must open an account to access your funds if you’re approved. To apply online, you must have an existing account or open a new one.
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Heather Petty is a personal finance writer at , specializing in home and personal loans. After falling victim to a disreputable mortgage broker when buying her first home, she’s on a mission to help readers avoid similar experiences when managing their own finances. A self-proclaimed word nerd, her writing and analysis has been featured on MSN, Credit.com and MediaFeed, among other top media. Heather previously worked as a technical writer and editor for the casino systems industry and is an internationally published young adult mystery author. She earned a BA in English with a minor in journalism from the University of Nevada, Reno.
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Becu Releases 2019 Annual Report: Returns Profits To Members And Communities
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.
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.
The line of credit appears as an account in your Online Banking, and you can easily initiate a free, same-day transfer to your checking account.
Winterize Your Home
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.
You can access a HELOC for 10 years — this is known as the draw period. During the draw period you can access funds up to your account limit and have the option of making interest only payments — subject to the lesser of $100.00 or your account balance. When the draw period ends, the repayment period begins.
The repayment period is 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 in effect on the last day of the previous month, plus or minus your margin, which is provided with the original loan documents.
Home Equity Loan Fixed Rates
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 in effect on the last day of the previous month, plus or minus your margin, which was provided with your original loan.
Questions? Drop by a location, or schedule a time to talk to a member consultant or give us a call at 844-LOAN (844-232-8562).
In order to open a HELOC account, you must become a member and satisfy 's underwriting criteria; not all applicants will qualify. 4.99% Introductory Annual Percentage Rate (APR) for six (6) months from date of account opening. After that your APR may be 8.49% to 11.34% or the APR in effect at the end of the six-month introductory period, based on your credit worthiness and property type. This APR is based on the Prime Rate in effect on the last day of the previous month, plus or minus your margin, but will never exceed 18.00% or go
