How to Use A Home Equity Line of Credit (HELOC)

Life is full of unexpected financial needs, and, when they arise, it’s always beneficial to have a bit of borrowing power in your corner. When you know how to use a Home Equity Line of Credit (HELOC), you can make the most of your home’s equity. Reach out to the friendly professionals at Bellco Federal Credit Union with any questions about how the product works or for assistance with your application to open a HELOC.

Using a HELOC

A Home Equity Line of Credit provides access to a revolving credit line. Reminiscent of a credit card, you borrow as you spend rather than borrowing in one large lump sum. Bellco FCU professionals will consider your home’s value minus the balance on your mortgage to determine the amount of equity you’ve built within the home. The credit limit on your HELOC will be a percentage of that equity and will depend on several factors including your credit score, debt-to-income ratio, and income.

Once we approve your HELOC, you’ll have two periods. The first is the amount of time you have to spend on the line of credit; it’s referred to as the “draw period.” This period typically lasts either 5 or 10 years. Throughout this period, you can continue to spend as long as you pay down the balance and keep an available amount of credit on your HELOC. 

At the end of the draw period, the repayment period will begin. This period will also be a specified period of time, and the amount you borrowed must be repaid by the end of this period.

Why Choose Bellco Federal Credit Union

Making the decision to open your HELOC with Bellco Federal Credit Union should be obvious to those who value speed, professionalism, and good rates. We’re a member-owned federal credit union with the purpose of community-building instead of making profits. Originally founded as Bell Telephone Credit Union in 1938, we continue to serve the Berks County, PA, area by providing a plethora of financial products and services, including access to HELOCs. 

Those who live, work, attend school or worship within the boundaries of Berks County, PA are potential members of Bellco Federal Credit Union. All that’s required is to open a savings account with as small a deposit as $5. 

Choosing a HELOC is beneficial because of many of the benefits provided by the loan. You borrow only what you need, as you need it, and your borrowing can take many forms. You can write a check or access your line of credit via online, telephone, or branch services. 

Be prepared for an emergency, your child’s tuition bill, or home and auto repairs with the confidence that a HELOC is available. Unexpected financial obstacles won’t be insurmountable when you have access to a low-rate line of credit secured by your home’s equity.

As you brave the expenses life throws your way, Bellco Federal Credit Union can help. Our decisions and processing all occur locally, so you’ll have quick and attentive service from beginning to end. 

If you prefer the benefits of opening a HELOC to borrowing a large lump sum against your home’s equity, contact Bellco FCU to discuss how to use a Home Equity Line of Credit, how to apply, and what to expect over the course of your HELOC.