Reading HELOC Lenders

Using the equity built up in your home as a financial resource is possible by taking out a Home Equity Line of Credit (HELOC) or a Home Equity Loan. Reading, Pennsylvania residents looking for quality HELOC lenders should consider Bellco Federal Credit Union for securing low rates, convenient access, few fees, and other benefits. 

What is Home Equity?

Equity is the portion of your home that you own outright compared to the portion you owe to the lender. In other words, if your home is valued at $250,000 and you owe $175,000, you have $75,000 in equity – or 30%. This means that you still owe 70% of the value of the home (known as Loan-to-Value.) Your equity (the $75,000) can be used as collateral for a HELOC.

Fully Understanding a HELOC

A HELOC is a loan that is set up as a line of credit for a preset amount of money that can be withdrawn as needed, rather than a loan for a fixed dollar amount that is paid in a lump sum.

This line of credit works somewhat like a credit card and can be used whenever you need the funds. The interest rate may be lower than that of traditional fixed-rate mortgages, credit cards, and other types of personal loans.

Unlike the conventional Home Equity Loan, the interest rate on the HELOC is adjustable (not fixed), which means it may change over the term of the loan.  

During what is called a “draw period” (typically 5 or 10 years), you can make as many withdrawals as you like up to your credit limit, if and when you need the funds. The HELOC can be an excellent solution when you need to borrow small amounts over a longer period, such as for an extensive home renovation project or to pay ongoing tuition fees.

Choosing Bellco Federal Credit Union

When you’re considering different lenders available for your HELOC, consider Bellco FCU. We are a member-owned federal credit union that is focused on benefiting members and the community rather than making profits. To become a member of Bellco FCU, any person who works, lives, worships or attends school in Berks County, PA, or has an immediate family member who is a credit union member, can open a member savings account with a $5 deposit to establish membership and apply for a HELOC with excellent terms. 

Enjoy the Benefits of a HELOC from Bellco FCU

  • Locally operated approval and processing

  • Lower interest rates than other types of loans

  • Finance intermittent expenses like tuition, home remodeling, etc.

  • Borrow only what you need, paying interest only on that amount

  • Access the line of credit easily through checks, online, phone, and in-person access

  • Pay down the balance on the line of credit to use in a cyclical fashion, much like a credit card

  • Making timely payments on your HELOC can boost your credit score

  • Enjoy member-focused, attentive service

  • Have the option of Bellco loan protection

Bellco Federal Credit Union is an experienced HELOC lender in the Reading area. We provide financial products and services to the residents and businesses of Berks County. For more information on how to turn your home equity into a financial tool, give us a call or stop in for a consultation with one of our friendly financial professionals.