Home Equity Line of Credit Kutztown, PA

Are you considering a Home Equity Line of Credit (HELOC) in Kutztown, PA? Large for-profit banks are not the only option. Consider Bellco Federal Credit Union!

Bellco FCU is a member-owned, not-for-profit federal credit union. For the past 80 years, we have provided unique financial products and services to individuals in Berks County, including HELOCs, traditional Home Equity Loans, fixed-rate mortgages, and more.

If you live, work, worship, or attend school in Berks County, you are eligible for membership in Bellco FCU. We know you’ll love our personalized service, better rates on loans and credit cards, and the ability to save hundreds of dollars on fees.

Home Equity Line of Credit: Everything You Need to Know

If you have equity in your home and need funds to remodel your home, consolidate debts, pay for a wedding, pay a tax bill or another unexpected expense, Bellco FCU can help you get quick access to cash when you need it with a Home Equity Line of Credit (HELOC).

What is a Home Equity Line of Credit (HELOC)?

A Home Equity Line of Credit is a loan that lets you borrow up to a certain amount by using your home as collateral. The interest rate on a HELOC may be lower than that of traditional fixed-rate mortgages, credit cards, and other types of personal loans.

How much can I borrow?

Most lenders limit home equity borrowing to 80% to 90% Loan-to-Value (LTV). This is determined by dividing the balance owed on your mortgage (and any the other loans secured by your property) by the appraised value of your home. The lender will also consider your credit score, monthly income and debt-to-income ratio to determine how much equity you need for a HELOC.

How does the HELOC work?

Home Equity Lines of Credit work somewhat like a credit card – there is a credit limit and you can borrow against it for a limited time period (typically 5 or 10 years), pay off all or part of the principal, and borrow again and again up to the credit limit for the duration of the draw period. When the draw period ends, your repayment period begins. During this period, you can no longer borrow against the credit limit and must make payments until the line of credit has been repaid.

What if I need the funds all at one time?

If you need funds all at once, a traditional Home Equity Loan may make more sense for you. The Home Equity Loan is considered a second mortgage and may have a higher interest rate than that of your first (primary) mortgage. The funds are provided in a lump sum, and then you make monthly payments to repay the loan.

Whether you need a Home Equity Line of Credit (HELOC) or conventional Home Equity Loan in Kutztown, PA, Bellco FCU offers the best interest rates. Contact us today to learn more!