Fixed Rate Loan Option, HELOCs | Woodstone Credit Union | Federal Way Washington

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Fixed Rate Loan Option

Available with your Woodstone HELOC

Choose the Fixed Rate Option if you want the peace of mind of knowing your rate and payment won’t go up as interest rates rise or you want to start paying off your home equity balance immediately, rather than waiting until the end of the interest only period.

Let’s say your HELOC credit limit is $80,000, and you borrow $35,000 for an important purchase, such as a kitchen remodel. You now have the flexibility to choose the repayment option that works best for you:

  1. Make interest-only payments for the remainder of your draw period then make fully amortized payments for the 20-year repayment period.
  2. Fix your rate and make principal-and-interest payments for 15 years. As you make principal payments, the amount you have available to borrow increases again.
The next time you want to borrow for a large purchase—or at any time during your draw period—you can again choose either a variable rate or fixed rate loan.

The details:

  • Fix the interest rate on all or a portion of your HELOC balance at closing and/or anytime during the draw period.
  • Every time the fixed rate option is exercised, a unique loan with its own term and interest rate is created. This unique loan is called a fixed rate advance (FRA).
  • As balance is paid down, equity is freed up to be drawn again
  • Up to three Fixed Rate Advances may be open at one time
  • Fixed rate balance may not be converted back to variable
Eligible Property Types Single Family Residences
Occupancy Owner occupied properties only
Location Washington State only
Maximum Combined Loan to Value Up to 80%
  Home Equity Loan Interest-Only HELOC Fixed-Rate Option
Minimum loan/line amount $5,000 $10,000 $5,000 minimum per fixed rate advance
Term Up to 15 years 10 year draw period, 20 year repayment period Terms up to 15 years. Fixed Rate Advance may be exercised during the draw period only.
Payments Fully amortized. P+I payments for a fixed term up to 15 years. Interest-only payments during draw period; amortized payments during repayment period
  • Fully amortized, P+I payments for a fixed term up to 15 years.
  • Each FRA requires its own monthly payment.
Fees No additional fees $50 annual administration fee No additional fees
Closing costs None None None


APR = Annual Percentage Rate. Approved rate and term are based on applicant’s credit history. All loans are subject to Woodstone Credit Union’s lending guidelines. Loan amounts up to $250,000; maximum 80% LTV. Limited to owner-occupied properties in Washington. No set-up fees are charged to the member at funding. The set-up costs paid by the credit union, which range from $500 to $1,500 depending on the transaction, will be reimbursed by the member if the loan is paid off and closed within 3 years of opening. Flood/Hazard certificate and property insurance required. A full appraisal may be required for some loans. In such cases the appraisal fee is charged and collected up-front. No escrow account required. Member is responsible for property tax & insurance payments. Payment Examples: Second Mortgage Loan amount of $50,000 at 3.49% for 60 month term at 70% CLTV has an estimated Principal & Interest payment of $909.48. HELOC balance of $50,000 at 4.00% variable APR and 70% CLTV has an estimated interest-only payment of $166.67 during the draw period and $302.99 during the repayment period.