Best Credit Union for a HELOC in Blandon, PA

Unexpected expenses are a constant in life. Regular tuition costs, recurring medical treatments, travel expenses, and a myriad of other life events can be disruptive to your perfectly constructed household budget. Carve out a plan for these situations by using the equity you’ve worked so hard to build in your home! The best credit union for a HELOC in Blandon, PA, is undoubtedly Bellco Federal Credit Union. 

Flexibility is the key feature of a HELOC, otherwise known as a Home Equity Line of Credit. Homeowners are free to borrow and repay on a more flexible schedule, but since the money is secured by the home, borrowers should be careful to spend only what they can afford to repay. 

How a HELOC Works

A simplified analogy for understanding the operations of a HELOC is to compare it to a credit card. The line of credit includes a limit, and the borrower can spend and repay up to that limit throughout the spending period, also referred to as the “draw period.” 

Bellco Federal Credit Union offers several ways to access this credit line, including through checks and phone, online, and in-person withdrawals. The frequency and quantity of the transactions don’t matter as long as they are within the credit limit. 

After the pre-determined spending, or “draw,” period is complete, repayment will commence. No more spending is allowed, and the borrower will have another defined term during which the borrowed funds will need to be repaid. 

In comparison to other loans that use the equity in your home as collateral, a HELOC from Bellco FCU offers a variety of benefits:

  • Draw out only what you need, when you need it

  • Pay interest only on amounts you withdraw 

  • Repay the principal and reuse the funds over and over again during the draw period 

  • Interest may be tax-deductible (consult a tax advisor)

  • Local, Pennsylvania decision-making and processing 

  • Attentive, friendly service from start to finish 

  • Bellco Loan Protection is available

The Determination of the HELOC Credit Limit

The limits of a HELOC largely depend on the amount of equity built up in your property. 

Most lenders limit home equity borrowing to 80% to 90% Loan-to-Value (LTV). This is determined by dividing the balance owed on your mortgage (and any other loans secured by your property) by the appraised value of your home. 

Based on the following example, you may qualify for a Home Equity Line of Credit in the amount of $35,000 or less:

  • Home’s current appraised value: $200,000

  • 80% of appraised value: $160,000 ($200,000 x 0.8)

  • Amount owed on the mortgage: $125,000

  • 80% of home’s value minus amount owed: $35,000 ($160,000 - $125,000)

The lender will also consider your credit score, monthly income, and debt-to-income ratio to determine how much equity you need for a HELOC.

Set Up Your HELOC with Us

If you’re ready to start the process of obtaining a Home Equity Line of Credit through the equity in your home, give us a call, apply online, or stop in at one of our branches. 

Membership in Bellco FCU is open to people who live, work, worship, or attend school in Berks County, PA. Simply open a Member Savings account with as little as $5, and set up your membership in a few simple steps.

Once you are a member, your immediate family members will be eligible to join too and take advantage of competitive rates for HELOCs, mortgages, personal loans, credit cards, and the many other services we offer.

When you’re ready to use your equity to fund major expenses, work with Bellco FCU, the best credit union for a HELOC in Blandon, PA.