Wescom Credit Union unveiled a fixed rate feature on a home equity line of credit (HELOC) for its members, allowing them to tap into their home’s equity while safeguarding the loan from rising interest rates.
“The debut of Wescom’s fixed rate feature HELOC is our way of adding value back into our membership,” Jeff Smrcka, vice president of consumer lending at Wescom, said in a release. “With a 0.50 percent 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.”
Wescom said its new offering 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.
The offering allows for multiple converted balances (up to three) and gives borrowers the flexibility of still having an open line of credit during their draw period.
Some key features of the Wescom fixed rate feature HELOC offer include:
- 0.50 percent APR rate discount on converted balances.
- Fixed rate of 3.99 percent APR for the first 12 billing cycles. After, current variable rate is 9percent to 13percent APR.
- Minimum conversion amount is $15,000.
- Minimum conversion term is 5 years.
- Terms are available from five 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.