Berks County HELOC Lenders
When looking for HELOC (Home Equity Line of Credit) lenders in Berks County, PA, consider every option, starting with Bellco Federal Credit Union.
In 1938, Bell Telephone employees formed Bell Telephone Credit Union. Today, 80 years later, Bellco FCU continues to be a member-owned, not-for-profit federal credit union that offers unique financial products and services to people and small businesses in Berks County, PA.
We offer competitively low rates for home purchase, refinance, or construction, and have a number of home loan programs available, including HELOCs and traditional Home Equity Loans.
Key Factors That Will Affect Your HELOC Decision
A Home Equity Line of Credit, or HELOC, can provide you with a loan for up to 80-90% of the equity you have built up in your home. It works somewhat like a credit card, and is made available to you for a limited time period. There are some important factors to understand about HELOCs that could affect your decision.
How Do HELOC Interest Rates Work?
The primary concern for most people when choosing a HELOC lender is the interest rate. A HELOC will generally have a lower interest rate than other types of loans, making it an affordable option when you have large financial expenses.
All HELOCs are adjustable rate mortgages (ARMs). Interest rates will go up and down during the term of the loan in relation to an index, like the prime rate. Your HELOC may have a cap on how much the interest rate can rise over a specific period of time or over the length of the loan. If interest rates are on the rise, this will work in your favor.
Many lenders, including Bellco FCU, offer low introductory interest rates as a promotion. It’s important to ask about the duration of the introductory period as well as what you can expect the new rate to be when it ends.
How Long Will the HELOC Be Available?
Your HELOC will have two distinct terms:
Draw Period – period when funds can be withdrawn that usually lasts between 5 and 10 years. During this term, funds can be repaid and the line of credit can be used repeatedly.
Repayment Period – period that follows the draw period when the balance of the line of credit must be repaid.
Will I Have to Make a Balloon Payment at the End of the Loan Term?
At the end of the HELOC “draw period”, some lenders will require you to make a large one-time payment at the end of the term. This is called a “balloon payment.” It may be something you can live with, but you will want to know it’s coming in order to plan for it.
People who live, work, worship or attend school in Berks County qualify to be members of Bellco Federal Credit Union, and those looking for quality HELOC lenders will benefit from our service. Apply online, via phone, or in person for a Home Equity Line of Credit with flexible terms, competitive rates, and friendly service.