Home Equity Line of Credit Birdsboro, PA

A Home Equity Line of Credit can be a valuable financing tool for remodeling your home in Birdsboro, PA, paying for college tuition, and other large expenses. Expect some of the best interest rates and lowest fees at Bellco Federal Credit Union!

Bellco FCU is a member-owned, not-for-profit federal credit union that has been offering unique financial products and services to individuals and small businesses in Berks County since 1938.  

Unlike for-profit banks that are in business to earn profits for their shareholders, we return earnings to Bellco FCU members in the form of low-interest rates on loans, high-yield investment accounts, low or no-fee checking and savings accounts, and exceptional customer service.

What is a Home Equity Line of Credit (HELOC)?

A HELOC gives you access to a line of credit with a set limit, somewhat like a credit card. The amount of the loan is determined based on the appraised value of your home, minus the balance due on your mortgage. 

Once your loan application is approved, a specified amount of revolving credit is made available to you for a limited time period (typically 5 or 10 years). 

During what is called a “draw period,” you can withdraw funds from the line of credit as you need them. As you pay off the principal, your credit revolves, and you can use it again and again for the duration of the draw period.

In comparison to other loans that use the equity in your home as collateral, a HELOC offers a variety of benefits:

  • Draw out only what you need, when you need it

  • Pay interest only on the amounts you withdraw 

  • Multiple draw options include checks, online access, telephone access and branch access

  • Repay the principal and reuse the funds over and over again during the draw period 

  • Use it for periodic expenses, such as emergency funds, debt consolidation, tuition, and home improvements

  • Local, Pennsylvania decision-making and processing 

  • Attentive, friendly service from start to finish 

  • Bellco Loan Protection is available

Do You Qualify for a HELOC?

Requirements differ from lender to lender, but here are a few things you will typically need in order to qualify for a HELOC:

  • Income – Be prepared to show you have sufficient income to cover your mortgage payment and the new HELOC loan payment.

  • Strong Credit – Check your credit score. Lenders want to know you have a history of paying your debts on time.

  • Low Debt-to-Income Ratio – Lenders like to see a low debt-to-income ratio (DTI), or the ratio between your overall debts and your income.

  • Other Assets – Additional assets, such as a car, boat, rental property, or other investments, will make lenders feel more secure about lending you money.

Learn how a Home Equity Line of Credit works in Birdsboro, PA and about the advantages and disadvantages. Bellco FCU has the tools, information and expertise to help you make the right decisions.