Best HELOC Lenders Reading, PA
As you search for the best HELOC lenders in Reading, PA with the lowest rates and best services, consider Bellco Federal Credit Union.
About Bellco FCU
In 1938, Bell Telephone employees formed Bell Telephone Credit Union. They wanted to create a financial institution they could trust, one where they had a voice, and one that would work to help fellow employees obtain hard-to-get loans.
Now, 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.
Bellco FCU offers membership to people who live, work, worship, or attend school in Berks County, PA. Open a Member Savings account with as little as $5, and establish your membership in a few simple steps. This is not a fee; it is a share in the credit union and provides you with voting rights and a say in any decisions we make.
Even if you leave your current employer, retire, or move away, you can remain a Bellco FCU member for life. You will have access to your accounts from anywhere by mail, phone, fax, online and at thousands of ATMs across the nation.
About Home Equity Lines of Credit (HELOCs)
A Home Equity Line of Credit (HELOC) works very much like a credit card and can be used whenever you need the funds. The interest rate may be lower than that of traditional fixed-rate mortgages, credit cards, and other types of personal loans.
Unlike the conventional Home Equity Loan, the interest rate on a HELOC is adjustable (not fixed), which means it may change over the term of the loan.
During what is called a “draw period” (typically 5 or 10 years), you can make as many withdrawals as you like up to your credit limit, if and when you need the funds. The HELOC can be an excellent solution when you need to borrow small amounts over a longer period, such as for an extensive home renovation project or to pay ongoing tuition fees.
How Much Can You Borrow?
To figure out how much you could borrow, subtract the balance you owe on your mortgage (and any the other loans secured by your property) from the appraised value of your home.
If, for example, your home is valued at $200,000 and you owe $140,000 on loans secured by your property, your equity is 30%, or $60,000. At 80% Loan-to-Value (LTV), minus the amount currently owed, you could qualify to borrow a maximum of $20,000.
Bellco FCU is one of the best HELOC lenders in Reading, PA. To learn the pros and cons based on your personal situation, contact us today. We have the tools, information and expertise to help you make the right decisions.