A home equity line of credit (HELOC) from Bellco FCU in Berks County, PA, can allow you tap into the equity you’ve built up in your home and use the funds for large or unexpected expenses, such as home repairs, a new roof, a child’s wedding, or to pay off high-interest debts.
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.
Features of a Home Equity Line of Credit (HELOC)
A HELOC from Bellco FCU may offer the funding you need for large expenses by providing you with a revolving line of credit at a lower interest rate than other financing options.
The line of credit has a set limit, somewhat like a credit card, and is made available to you for a limited time period (typically 5 or 10 years). During what is called a “draw period,” you have the ability to withdraw funds from the line of credit whenever 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.
A HELOC may make sense if you need to borrow smaller amounts over a longer period, such as for a lengthy home renovation project. The advantages include:
- Utilizes the existing equity in your home as collateral
- Use the money however you like
- Withdraw what you need, when you need it
- Pay interest only on what you withdraw, not on the entire HELOC
- Interest rate may be lower than traditional fixed-rate mortgages, credit cards, and other types of personal loans
- Repay the principal and reuse the funds over and over again during the draw period without reapplying
- Multiple options available for draws, including HELOC checks, at your local branch, or online and telephone access
- Interest may be tax deductible (consult with your tax advisor)
- Local decision-making and loan processing
- Friendly, professional service from start to finish
- Bellco Loan Protection is available
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.
Interested in applying for a home equity line of credit in Berks County, PA? If you are already a member of Bellco FCU, you can apply online. If you are not yet a member, but live, work, worship, or attend school in Berks County, consider opening a primary savings account with as little as $5, and become a member today to take advantage of our many products and services!