Best Credit Unions or Banks for HELOCs
HELOCs, or Home Equity Lines of Credit, are offered by banks and credit unions and can be a valuable financing tool for home repairs, renovations and other large expenses. Expect some of the best interest rates and lowest fees at Bellco Federal Credit Union in Berks County, PA!
Bellco FCU is a member-owned, not-for-profit federal credit union that has been offering unique financial products and services to individuals and small businesses in Berks County since 1938.
Unlike for-profit banks that are in business to earn profits for their shareholders, we return earnings to Bellco FCU members in the form of low interest rates on loans, high-yield investment accounts, low- or no-fee checking and savings accounts, and exceptional customer service.
Not a Member of Bellco FCU?
Joining Bellco FCU is easier than you think! Membership is open to individuals who live, work, worship, or attend school in Berks County, PA, and their immediate family members.
If you haven’t joined yet, consider opening a primary Member Savings account. Deposit a minimum of $5 to establish and maintain your membership, and take advantage of Bellco FCU accounts and services.
When you join Bellco FCU, you’ll remain a member for the rest of your life, even if you change jobs, retire, or move away from Berks County. You also become a partial owner and have an equal voice in how your credit union is run, no matter how much money you have on deposit.
Why a HELOC?
If you have equity in your home and need funds to remodel your home, consolidate debts, pay for a wedding, pay a tax bill or another unexpected expense, Bellco FCU can help you get quick access to cash when you need it with a Home Equity Line of Credit (HELOC).
The interest rate on a HELOC may be lower than that of traditional fixed-rate mortgages, credit cards, and other types of personal loans.
A home equity line of credit works very much like a credit card and can be used whenever you need it. As you pay off the principal, the credit revolves, and you can use it again and again for the duration of the draw period.
How Much Can You Borrow?
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 the 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 for up to $35,000:
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.
Because Bellco FCU is smaller than a traditional bank and exists only to serve the members of our community, decisions on lending and other services are made internally, right here in Pennsylvania, which can speed up the lending process.
Credit unions are nonprofits and banks are profit-making institutions, so credit unions like Bellco FCU can offer the best interest rates for HELOCs and other loan products. Contact us today to learn more!