HELOC Offers in Reading, PA

If you’re looking for HELOC offers in Reading, PA, Bellco FCU can help. We are a not-for-profit member-owned credit union that has been serving the people of Berks County, PA for more than 80 years. 

HELOC stands for Home Equity Line of Credit and it can be the answer to your problems if you are wondering how to pay for unexpected bills, education expenses, or home improvements. 

About Home Equity Lines of Credit

A HELOC is a revolving line of credit that is secured with the equity in your home. What makes it different from a traditional loan is that you can borrow as much or as little as you want when you want, up to the limit decided on by your lender. This allows you to cover things like tuition and home improvement expenses a little a time. 

The benefit is that you only pay interest on what you withdraw. So, if you start off withdrawing $5,000 to pay one semester of tuition, that is what you will pay interest on. You can then withdraw more when the next semester’s tuition comes due. This saves you paying interest on one huge lump sum when you plan to use a little a time. 

Home equity lines of credit have adjustable (not fixed) interest rates, which means that the rate will change over the term of the loan. There is a draw period and a repayment period. During the draw period (typically 5 or 10 years), you can withdraw funds up to your credit limit. Borrow as much as you need, when you need it, and make a minimum payment on the amount borrowed.

If you partially or completely repay the line of credit during the draw period, you may make additional withdrawals. However, even if you do not use all of the available funds, you will not be able to make withdrawals once the draw period closes.

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). Withdrawals cannot be made during the repayment period. 

Do I Qualify for a HELOC?

Whether or not you qualify for a HELOC depends on a number of factors, such as the amount of equity you have in your home. Other factors that lenders will consider include your credit rating, your debts, your income, and any assets you may have. These factors can also affect the rate the lender will offer you. At Bellco FCU, we offer our members very competitive rates because we are not-for-profit and put members first.

If you live, work, go to school, or worship in Berks County, PA, you are eligible to become a member of Bellco FCU with a $5 deposit in a member savings account. If you are already a member, apply online and see our best HELOC rate offers in Reading, PA right now.