HELOC Features and Benefits
Put the equity in your home to work with a HELOC (Home Equity Line of Credit) from Bellco Federal Credit Union. The features and benefits include the ability to borrow the amounts you need when you need them to pay for home improvements, college tuition, unexpected emergencies, and any other purpose.
About Bellco FCU
In 1938, Bell Telephone employees formed Bell Telephone Credit Union. Today, 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 Home Equity Lines of Credit (HELOC)
A Home Equity Line of Credit, or HELOC, can provide you with a loan for up to 80-90% of your home equity value. The HELOC works somewhat like a credit card and is made available to you for a limited time period.
During the draw period (typically 5 or 10 years), you can withdraw funds from the credit line up to your credit limit. Withdraw as much as you need, when you need it, and make a minimum payment on the amount withdrawn. As you pay off the principal, your credit revolves, and you can use the credit line again and again for the duration of the draw period.
During the repayment period, you will be required to make monthly principal and interest payments until the entire loan has been repaid (typically up to 10 years).
HELOC Features and Benefits
Lower Interest Rates – A HELOC typically has a lower interest rate than other types of loans, making it an affordable option when you have large financial expenses. The rate is adjustable (not fixed), which means it may change over the term of the loan. Also, keep in mind that your credit score will have an impact on the rate. The higher your credit score, the lower the interest rate you may be able to obtain.
Pay Interest Only on the Funds You Use – One of the major benefits of a HELOC is you only pay interest on the amount you borrow, not the entire principle. For example, if you get a HELOC for $50,000, but use only $25,000, you would pay interest on the $25,000 you utilized, not on the entire $50,000 loan.
Improve Your Credit Score – Making timely payments on your HELOC can boost your credit score, signaling to financial institutions that you are a responsible borrower. The lender can foreclose on your home, however, if you can’t repay the loan when it comes due.
Join Bellco FCU Today
If you are already a member of Bellco FCU, you can apply for a HELOC online. If you are not yet a member, but live, work, worship, or attend school in Berks County, consider opening a Primary Savings Account with as little as $5, and become a member today!
When you join Bellco FCU, you will remain a member for the rest of your life, even if you change jobs, retire, or move out of 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.
To learn more about the features and benefits of the HELOC, get in touch with the knowledgeable Bellco FCU team for answers to all of your questions.