Low Rate HELOC

If you have equity in your home and are looking for a low rate HELOC (Home Equity Line of Credit), the experts at Bellco Federal Credit Union can help.

About Bellco FCU

In 1938, Bell Telephone employees formed Bell Telephone Credit Union. Today, 80 years later, Bellco FCU continues to be a member-owned, not-for-profit federal credit union that offers unique financial products and services to people and small businesses in Berks County, PA.

We offer competitively low rates for home purchase, refinance, or construction, and have a number of home loan programs available, including HELOCs and traditional Home Equity Loans.

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.

HELOC Features and Benefits 

Lower Interest Rates – A HELOC typically has a lower interest rate than other types of loans, making it an affordable option when you have large financial expenses. The rate is adjustable (not fixed), which means it may change over the term of the loan.  Also keep in mind that your credit score will have an impact on the rate. The higher your credit score, the lower interest rate you may be able to obtain.

Pay Interest Only on the Funds You Use – One of the major benefits of a HELOC is you only pay interest on the amount you borrow, not the entire principle.  For example, if you get a HELOC for $50,000, but use only $25,000, you would pay interest on the $25,000 you utilized, not on the entire $50,000 loan.

Improve Your Credit Score – Making timely payments on your HELOC can boost your credit score, signaling to financial institutions that you are a responsible borrower. The lender can foreclose on your home, however, if you can’t repay the loan when it comes due.

Are You Eligible to Join Bellco FCU?

Anyone who lives, works, worships, or attends school in Berks County may join Bellco FCU, including immediate family members, such as your spouse, children, siblings and parents.

Simply open a Member Savings account with as little as $5, and set up your membership in minutes. This is not a fee; it is your share of the credit union. 

When looking for a low rate HELOC, get in touch with the home lending specialists at Bellco FCU to explore your options.