HELOC from a Berks County Credit Union
A HELOC (Home Equity Line of Credit) can be a valuable financing tool for home repairs, renovations and other large expenses. Expect some of the best rates and lowest fees at Bellco Federal Credit Union in Berks County, PA.
Bellco FCU is a member-owned, not-for-profit federal credit union. For 80 years, we have provided unique financial products and services to individuals in Berks County, including HELOCs, traditional Home Equity Loans, fixed rate mortgages, and more.
What is Home Equity?
Equity is the portion of your home that you own compared to the portion you owe to the lender. In other words, if your home is valued at $250,000 and you owe $175,000, you have $75,000 in equity – or 30%. This means that you still owe 70% of the value of the home (known as Loan-to-Value.)
If you have equity in your home and need funds to remodel your home, consolidate debts, pay for a wedding, pay a tax bill or another unexpected expense, Bellco FCU can help you get quick access to cash when you need it by helping you use your equity as collateral for a Home Equity Line of Credit (HELOC).
How much can you borrow?
Most lenders limit home equity borrowing to 80% to 90% Loan-to-Value (LTV). This is determined by dividing the balance owed on your mortgage (and any the other loans secured by your property) by the appraised value of your home. The lender will also consider your credit score, monthly income and debt-to-income ratio to determine how much equity you need for a HELOC.
How does the HELOC work?
Home equity lines of credit work somewhat like a credit card – there is a credit limit and you can borrow against it for a limited time period (typically 5 or 10 years), pay off all or part of the principal, and borrow again and again up to the credit limit for the duration of the draw period. When the draw period ends, your repayment period begins. During this period, you can no longer borrow against the credit limit and must make payments until the line of credit has been repaid.
A HELOC from Bellco FCU may offer the funding you need at a lower interest rate than that of traditional fixed-rate mortgages, credit cards, and other types of personal loans.
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 HELOC loans and current rates, contact Bellco Federal Credit Union in Berks County, PA. We have the tools and expertise to help you make the right decisions.