If you’re interested in a Home Equity Line of Credit (HELOC) in Blandon, PA, Bellco Federal Credit Union offers competitive rates, low fees, local decision-making and loan processing, and the friendliest service!
Bellco FCU is a member-owned, not-for-profit federal credit union. Since 1938, we have provided unique financial products and services to individuals in Berks County, including HELOCs, traditional home equity loans, fixed rate mortgages, and more.
Membership in Bellco FCU is open to people who live, work, worship, or attend school in Berks County, PA. Simply open a Member Savings account with as little as $5, and set up your membership in a few simple steps.
Once you are a member, your immediate family members will be eligible to join too and take advantage of competitive rates for mortgages, personal loans, credit cards, and the many other services we offer.
What to Know About HELOCs
A HELOC, or Home Equity Line of Credit, is a revolving line of credit that is secured with the equity in your home. You draw out the money you need, when you need it, and make monthly payments based on the amount of money you withdraw.
To figure out how much you may be able to borrow, subtract the balance you owe on your mortgage (and any other loans secured by your property) from the appraised value of your home. If, for example, your home has a value of $200,000 and you owe $120,000 on loans secured by your property, your equity is 40%, or $80,000.
Different lenders have different guidelines, but it is common to see HELOCs offered with a Loan-to-Value (LTV) between 80% and 90%. Using the home described above, which is worth $200,000 and has $120,000 still owed on the mortgage, the homeowner could qualify to borrow a maximum of $40,000 (80% LTV).
Here are a few things you will typically need in order to qualify for a HELOC:
- Income – Your lender will want to know that you have sufficient income to cover the cost of your current debts, plus the additional HELOC debt you will be taking on.
- Strong Credit – Check your credit score. Lenders want to know you have a history of paying your debts on time. The higher your credit score, the better, but most lenders will work with you even if you have had credit problems in the past.
- Low Debt-to-Income Ratio – Lenders prefer to see a low debt-to-income ratio (DTI). This is 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.
Bellco FCU has the expertise to help you make the right decisions. Our knowledgeable loan professionals will evaluate your credit worthiness based on your income, assets, debts and past credit use and help you determine how much you can afford to borrow.
A HELOC from Bellco FCU may offer the funding you need in Blandon, PA for large expenses at a lower interest rate than that of traditional fixed-rate mortgages, credit cards, and other types of personal loans. Contact us today!