Home Equity Line of Credit Shillington, PA
If you live or work in Shillington, PA, and have been considering a Home Equity Line of Credit (HELOC), Bellco Federal Credit Union can help. By becoming a member, you can qualify for the best interest rates, low fees and attentive, friendly service from start to finish!
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.) Your equity can be used as collateral for a HELOC.
What is a HELOC?
A Home Equity Line of Credit (HELOC) can provide you with a certain amount of money, usually between 80-90% of your home equity value. It works somewhat like a credit card and the funds are 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 whenever you need them, up to your credit limit. As you pay off the loan principal, your credit revolves, and you can use the money again and again for the duration of the draw period.
HELOC funds can be used to fund home repairs, remodel your home, pay for college, for financial emergencies or even to take vacations. Since you will be putting your home on the line as collateral, you may not want to use the funds to purchase luxury vehicles, computers, big screen TVs or other big-ticket items.
Other Financing Options
A traditional Home Equity Loan may make sense when you need a large amount all at one time. This is considered a second mortgage and may have a higher interest rate than that of your first (primary) mortgage. The funds are provided to you in one lump sum, and then you make monthly payments to pay it back.
Some people choose to refinance a first mortgage and withdraw some or all of the equity in a lump sum to avoid having two payments. This involves exchanging the existing mortgage for a new mortgage. Bellco FCU also offers home mortgages with varying loan terms.
Not Yet a Member of Bellco FCU?
Bellco FCU offers membership to people who live, work, worship, or attend school in Berks County. Open a Member Savings account with as little as $5 and establish your membership in a few simple steps. This is not a fee; it is a share in the credit union and provides you with voting rights and a say in any decisions we make.
Even if you leave your current employer, retire, or move away, you can remain a Bellco FCU member for life. You will have access to your accounts from anywhere by mail, phone, fax, online and at thousands of ATMs across the nation.
If you have equity in your home and are considering a Home Equity Line of Credit, the experts at Bellco FCU can help you decide. If you have questions, get in touch with our home lending specialists to discuss your options.