PASADENA, Calif.— Wescom Credit Union said it has unveiled a fixed rate feature on a home equity line of credit for its members, “allowing them to tap into their home’s equity while safeguarding the loan from rising interest rates.”
According to Wescom, its Fixed Rate Feature HELOC is unique because it gives members the ability to lock outstanding HELOC balances into a fixed rate, on a term of their choosing, without having to apply for or take out another loan “potentially paying hundreds of dollars in closing costs. The offering allows for multiple converted balances (up to three at any one point) and gives the borrower the flexibility of still having an open line of credit during their draw period, providing the best of both worlds: revolving and installment in one.”
Adding ‘Value Back’
Added Jeff Smrcka, VP-consumer lending, “The debut of Wescom’s Fixed Rate Feature HELOC is our way of adding value back into our membership. With a 0.50% APR rate discount on converted balances, our members can plan their finances with a degree of certainty, making long-term financial planning easier and giving them greater peace of mind when it comes to preparing for upcoming projects in their personal lives.”
The Pricing
The specific pricing features include, with various terms and conditions:
- 0.50% APR rate discount on converted balances
- Introductory fixed-rate of 3.99% APR for the first 12 billing cycles
- After 12 billing cycles, current variable rate is 9.00% to 13.00% APR
- Minimum conversion amount is $15,000
- Minimum conversion term is five years
- Terms are available from 5 to 20 years in five-year increments depending on the length of time the member has left on their existing HELOC and the amount converted
- No origination fee or closing costs
- Annual fee waived for the first year for Wescom Platinum Signature Members
Not Like Other Offers
“At a time when many other lenders have suspended HELOCs, Wescom is committed to developing its HELOC program further in an effort to provide innovative products and services that are valuable and more meaningful for its members,” the credit union said. “Other banking institutions that do offer a HELOC only offer it against someone’s primary residence; however, because a Fixed Rate Feature HELOC is a part of Wescom’s existing program, it’s available to owner-occupied properties along with investment and second homes.”
As Winter Approaches, the Price for the Best Daily News Update in Credit Remains a Nice, Cozy Free!
The biggest, best and freshest news reporting in credit unions remains free! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more. So stop paying those bank-fee-like subscription prices from other so-called “news” publications!
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?