HELOC Credit Union vs Bank
Credit unions offer plenty of perks that large for-profit banks cannot. Bellco FCU, for example, offers competitive HELOC rates, cutting-edge technology, and other valuable benefits.
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.
About the HELOC
Your home equity is the difference between your home's current market value and the amount you still owe on your mortgage (plus any other liens on the property). Your equity will 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 payback 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.
Reasons to Choose a Credit Union Instead of a Bank
Credit unions provide superior service.
Credit unions traditionally offer their members higher rates on savings accounts and lower rates on loans and credit cards.
Credit union fees are lower than at most banks.
Join Bellco FCU Today
Membership in Bellco FCU is open to people who live, work, worship, or attend school in Berks County, PA. Simply open a Member Savings account with as little as $5, and set up your membership in a few simple steps.
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.
If you are looking for a HELOC in Berks County, PA, Bellco Federal Credit Union is a great option. Unlike big banks, we strive to meet the needs of our members and the communities we serve with the lowest possible rates and fees.