Wescom Credit Union launches fixed rate feature HELOC
Wescom is offering a 0.50% APR1 conversion rate discount on a Home Equity Line of Credit balance utilizing the new fixed rate feature to combat rate hikes and lean into members’ financial needs
PASADENA, CA (November 14, 2023) — For Southern and Central Californians looking to make home improvements or leverage their home equity to achieve other goals, Wescom has 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,” stated Jeff Smrcka, Vice President of Consumer Lending at Wescom. “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.”
Wescom’s 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.
Anyone living in Southern or Central California can open an account to become a Wescom member. Some key features of the Wescom Fixed Rate Feature HELOC offer include3:
- 0.50% APR1 rate discount on converted balances
- Low, introductory fixed rate of 3.99% APR for the first 12 billing cycles2
- After 12 billing cycles, current variable rate is 9.00% to 13.00% APR
- Members will be able to save money in the long run if interest rates continue to increase
- Minimum conversion amount is $15,000
- Minimum conversion term is 5 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
- Members know exactly what they are paying every month, which makes it easier for long-term financial planning
- No origination fee or closing costs4
- Annual fee waived for the first year for Wescom Platinum Signature Members5
If members are considering making home improvements or taking out a loan, it’s important to understand the differences between a HELOC, a Home Equity Loan or Personal loan:
- In comparison to a personal loan, a HELOC has longer terms, lower interest rates, potential tax deduction (check with your tax advisor), and smaller monthly payments.
- In comparison to a Home Equity Loan, HELOCs have lower interest rates, better monthly payment flexibility and the ability to access money when needed.
- HELOCs normally have lower interest rates, higher limits, and work similar to a credit card. It pays interest only on draw amount and there are tax incentives if using it for home improvements.
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. 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.
To learn more about Wescom’s active Fixed Rate Feature HELOC offering, please visit: wescom.org/home-loans/home-equity.
APR (Annual Percentage Rate) in effect as of 7/28/2023 and is subject to change without notice. Membership eligibility required. All accounts and loans are subject to approval.
1If you choose to convert any portion of your balance to a Fixed Rate Conversion (FRC), the 0.50% APR discount will be applied to the HELOC variable rate (Prime Rate plus a margin) that is in effect on the date of conversion.
The Home Equity Line of Credit is a variable rate loan. The Rate and APR will increase or decrease monthly based on a comparison of the loan’s Rate to the Prime Rate index plus the margin, if any Monthly payments may vary and decrease or increase corresponding to changes to the Rate. Maximum combined loan-to-value of 90%. The rate or margin you qualify for is based on various factors including your credit rating and the combined loan-to-value (CLTV) of your property.
2To be eligible for the introductory fixed rate for the first twelve (12) billing cycles option, you must not have had a Wescom HELOC within the last six months. 9.00% APR to 13.00% APR is the standard variable APR that would apply if this special rate was not offered. This is available for primary residences only with a combined loan-to-value at or below 80%. The rate or margin you qualify for is based on credit qualifications and the combined loan-to-value (CLTV) of your property.
3A Wescom HELOC fixed rate conversation (FRC) option allows members with a new or existing HELOC to convert a portion or the entire outstanding balance into an amortized term segment of their choice at a fixed interest rate. Members may have up to three separate FRCs open on their HELOC at any one time. HELOCs currently within a special introductory rate period are not eligible for the FRC until the introductory period has ended. Terms and conditions apply.
4Wescom will cover most closing costs associated with a HELOC which may include: credit report, title insurance, flood certification, settlement/closing, recording, property search. If a full appraisal is requested by the member to validate the property value obtained, the cost will be paid by the member. If the line of credit is paid off and the loan is closed during the first thirty-six (36) months following the date of the Note, a processing fee to reimburse the Credit Union for closing costs associated with the HELOC will be due to the Credit Union upon payoff and closure of the loan. The processing fee ranges from $750 to $2,500 depending on the loan amount of the HELOC.
5$75 annual fee on our Equity Line is waived the first year and for Platinum Signature Members when secured by your Primary Residence. Call us at 1-888-4WESCOM (1-888-493-7266) for more details.
Wescom Credit Union NMLS ID 999430
About Wescom Credit Union
Since 1934, Wescom Credit Union has been dedicated to helping people throughout California build better lives. Headquartered in Pasadena, California, Wescom has 25 branches and offers advanced digital banking tools to provide essential banking solutions to more than 200,000 members. Benefits include free checking with eStatements, lower loan rates, higher savings yields, reduced fees, and a robust network of branches and ATMs. #WescomKindness is an extension of Wescom Credit Union’s nearly 90-year tradition of serving its community through such programs as The Wescom Foundation – the Credit Union’s employee-run charitable foundation. Wescom is federally insured by NCUA and an Equal Housing Opportunity Lender. For more information, please visit wescom.org