Home Equity Loans Hamburg, PA

Putting the most significant asset you have to work becomes simple when considering Bellco Federal Credit Union as your choice for home equity loans in Hamburg, PA. Whether you need to pay tuition, medical bills, consolidate debt, or invest in home upgrades, take advantage of the financial power of the walls around you.

Bellco Federal Credit Union, a member-owned federal credit union, operates as a non-profit financial institution that works to improve the lives of members and the greater community. We provide local decisions and processing and a hometown experience where members are met with compassion, expertise, and help to the greatest extent possible.

Understanding Options for Leveraging Home Equity

Equity is the amount of the home's value that you actually own. To calculate this value, you'll subtract the mortgage balance from the value of your home based on a current appraisal.

Home equity lending comes in two forms - as a loan or line of credit. It’s up to the homeowner to determine which is more appropriate for the situation. However, it’s crucial to remember that the home’s equity secures both of these products, so failure to repay may end in foreclosure.

A Home Equity Loan is another mortgage in addition to the original loan, with the equity built up in the home serving as collateral for the loan. Borrowers receive a lump sum amount when they take out home equity loans. Repayment will follow a fixed repayment schedule with a fixed amount of interest. The monthly payments will be stable and completed during a specific term, and you can use the funds borrowed as you see fit.

Alternatively, a Home Equity Line of Credit (HELOC) allows you to access funds based on the equity in your home. The line of credit is generally determined to be available up to 80-90% of the equity, and it operates in a cycle for a specified period.

This period is known as the "draw term." During this time, you can spend up to the limit whenever you need to. You can make payments and access the line of credit again, and this cycle can continue multiple times up to the end of the draw period.

When the draw period ends, you'll begin making repayments, which must be completed by the end of the repayment term. The interest rate is adjustable and capped so that the payment will depend on the balance of the line of credit and the current interest rate.

Whether you prefer to use your home equity as a loan or line of credit, Bellco Federal Credit Union is a terrific source for either. Reach out to our team to learn more.

Home Equity Borrowing with Bellco FCU Membership

Bellco FCU offers members a wide range of products and services - including checking and savings accounts, vehicle, home, and personal lending. To access any of our benefits, you'll need to establish that you qualify to become a member and then take steps to secure membership.

Qualifying for membership requires that you be an immediate family member of a current Bellco FCU member or live, work, worship, or attend school in Berks County, PA. The next step will be to deposit $5 in a Member Savings account.

Explore how to use your home equity with loans or lines of credit in Hamburg, PA, by reaching out to the team at Bellco Federal Credit Union; click here to contact us online or call (610) 373-5192.