Compare HELOC Rates PA
Before applying for a Home Equity Line of Credit (HELOC), compare rates among financial institutions in PA. Bellco Federal Credit Union offers competitive rates and a courteous professionalism that is based in hometown friendliness to extend sincere guidance to members throughout the process.
Bellco FCU, being owned by its members, works for the good of the community rather than profits for the shareholders. We’re a not-for-profit organization that began as Bell Telephone Credit Union in 1938 and has evolved into serving the whole of Berks County. We provide a range of financial products and services from savings and checking accounts to home loans, home equity lines, HELOCs, and more.
If your residence, job, house of worship, or school lies within Berks County, PA, you can become an owner/member of Bellco FCU. You will only need to deposit a minimum of $5 in a Member Savings account to establish membership.
Once you are a member, your immediate family members will be eligible to join too and take advantage of competitive rates for mortgages, personal loans, credit cards, and the many other services we offer.
What Is a Home Equity Line of Credit (HELOC)?
A HELOC is a line of credit, similar to a credit card, that is based on the equity in your home. You draw out the money you need, when you need it, and make monthly payments based on the amount of money you withdraw.
The interest rate on a HELOC may be lower than that of traditional fixed-rate mortgages, credit cards, and other types of personal loans, so it may be the perfect 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.
What You Need to Know Before Taking Out a HELOC
Lenders like Bellco FCU use several factors to determine exactly how much you can borrow.
Equity: When you apply for a HELOC, you must have equity in your home because it will be the collateral for your loan. If your home is worth more than the balance remaining on your mortgage (and any other debts secured by your home), you have equity. If, for example, your home has a market value of $250,000 and you owe $150,000, you have $100,000 in equity. To verify the home’s market value, the lender may require an appraisal.
Loan-to-value (LTV) ratio: We will also use the loan-to-value (LTV) ratio to determine how much you can borrow. Let’s say you are looking for a $10,000 line of credit and owe $150,000 on your mortgage (using the above information). If your home is currently valued at $250,000, the LTV would be 64%. Often, HELOCs are limited to an LTV of 80 percent.
Income: You will need to establish that you have sufficient income to cover the cost of your current debts, plus the additional HELOC debt you will be taking on. In most cases, we will be looking for a debt-to-income ratio of less than 43% and will also look at your assets, employment, credit history and monthly expenses to determine your ability to repay the loan.
Opening a Home Equity Line of Credit in Berks County, PA, should include a plan to compare HELOC rates. Here at Bellco Federal Credit Union, we offer all the tools, guidance, info, and professionalism required to plan your financial future well. Give us a call or stop in to discuss your plans.