Best Credit Union HELOC Rates
A HELOC (Home Equity Line of Credit) from Bellco Federal Credit Union can help you put the equity in your home to work for home improvements, college tuition, unexpected emergencies and more with the best rates and lowest fees.
Bell Telephone employees formed Bell Telephone Credit Union in 1938. Today, Bellco FCU continues to be a member-owned, not-for-profit federal credit union offering unique financial products and services to individuals and small businesses in Berks County, PA.
If you are already a member of Bellco FCU, you can apply for a HELOC online. If you are not yet a member, but live, work, worship, or attend school in Berks County, consider opening a primary savings account with as little as $5, and become a member today!
What is a HELOC?
A HELOC, or Home Equity Line of Credit, is a revolving line of credit that is secured with the equity in your home. It has a draw period and a repayment period.
During the draw period (typically 5 or 10 years), you can withdraw funds from the credit line up to your credit limit. Withdraw as much as you need, when you need it, and make a minimum payment on the amount withdrawn. If you partially or completely repay the line of credit during the draw period, you may make additional withdrawals.
During the repayment period, you will be required to make monthly principal and interest payments until the entire loan has been repaid (typically up to 10 years).
About HELOC Rates
Different lenders have different rules. When considering a HELOC, your first thought may be to go to the lender that holds your first mortgage, but it can pay to shop around.
HELOCs have an adjustable interest rate that goes up and down in relation to an index, like the prime rate. Also consider upfront costs, closing costs and any annual fees the lender may charge. They can all have a significant impact on the cost and suitability of your loan, so don’t be afraid to ask questions.
As experienced HELOC lenders, Bellco FCU offers flexible solutions, unique account features, low interest rates and fees, and face-to-face service.
HELOC Benefits
Lower Interest Rates – A HELOC typically has a lower interest rate than other types of loans, making it an affordable option when you have large financial expenses. The rate is adjustable (not fixed), which means it may change over the term of the loan. Also keep in mind that your credit score will have an impact on the rate. The higher your credit score, the lower interest rate you may be able to obtain.
Pay Interest Only on the Funds You Use – One of the major benefits of a HELOC is you only pay interest on the amount you borrow, not the entire principle. For example, if you get a HELOC for $50,000, but use only $25,000, you would pay interest on the $25,000 you utilized, not on the entire $50,000 loan.
Improve Your Credit Score – Making timely payments on your HELOC can boost your credit score, signaling to financial institutions that you are a responsible borrower. The lender can foreclose on your home, however, if you can’t repay the loan when it comes due.
Bellco Federal Credit Union is dedicated to helping members and their families build better lives with the best HELOC rates. Contact us today to learn more!