Best HELOC Rates PA

Bellco Federal Credit Union in Berks County, PA, offers HELOCs with the best possible interest rates, low fees, and attentive, friendly service from start to finish!

Bellco FCU is a member-owned, not-for-profit federal credit union. Since 1938, we have provided unique financial products and services to individuals in Berks County, including HELOCs, traditional Home Equity Loans, fixed rate mortgages, mortgage refinancing and more.

If you live, work, worship, or attend school in Berks County, you are eligible for membership in Bellco FCU. We know you’ll love our personalized service, better rates on loans and credit cards, and the ability to save hundreds of dollars on fees. 

About Home Equity Lines of Credit

Your home equity is the difference between your home's current market value and the amount you still owe on your mortgage and any other liens on the property (such as a second mortgage, also called a “Home Equity Loan”). 

The equity in your home can grow if the value of the property increases or you pay down your mortgage balance over time. If you owe more than your home is worth, you don’t have any equity.

A Home Equity Line of Credit, otherwise known as a HELOC, enables you to borrow against the equity in your home (usually 80% to 90% of your home equity value), on an as-needed basis. Similar to a credit card, you can repeatedly pay back and borrow from the line of credit whenever you need the money during what is called a “draw period,” (typically 5 or 10 years).

During the draw period, you will be required to make modest payments on the HELOC. As you pay down the principal, your credit line revolves, and you can use the funds again and again for the duration of the draw period. When the draw period ends, you will enter a repayment period during which you will pay off the debt more aggressively.

A HELOC can be an excellent source of funds if you need major home repairs, such as replacing your roof, central air conditioning, furnace, old cast-iron plumbing, or when remodeling a kitchen. A HELOC may also be a good option if you are paying for a child’s college tuition. Pay the tuition, pay off the amount, and then borrow from the line of credit again next semester. 

HELOC Alternatives

A traditional Home Equity Loan may be a better option if you need the funds in a lump sum. Because your interest rate on this loan (also called a “second mortgage”) will be fixed, creating a budget is easier and more predictable. You won’t have to worry about your payment increasing due to changing interest rates.

Another alternative is to refinance your first mortgage and withdraw some or all of the equity in a lump sum. This involves exchanging your existing mortgage for a new mortgage. If you have enough equity in your home for the funds you need, this can be a great way to avoid making two payments every month. Bellco FCU also offers home mortgages with varying loan terms.

If you have questions about the best HELOC rates in PA and the different types of home equity loans, contact Bellco FCU. We have the tools and expertise to help you make the right decisions.