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Home Equity Line of Credit (HELOC)

Turn the equity in your home into cash for improvements, debt consolidation or other large expenses.

2.99% APR[1]

Fixed for 12 months.

3.25% APR[2]

Prime for life, thereafter.

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Why Choose a Bethpage Home Equity Line of Credit?

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Closing Costs on Loans [3]

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Application, Origination, and Appraisal
Fees [3]

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Low interest-only payments for the first 10 years (i.e., the draw period)

A home equity line of credit (HELOC) is an open line of credit based on the equity in your home. A HELOC often has a lower interest rate and more flexibility than other types of loans. You only use the money when you need it, and you only pay interest (during the draw period) on what you use.

Ways to Use a HELOC

Home Improvements

You could use a home equity line of credit to pay for your next home improvement project.

Student Loans and Tuition

A HELOC could fund tuition expenses or pay off student loans that have high interest rates.

Debt consolidation

A HELOC can help you consolidate and pay off loans or expenses, with a lower interest rate.

Rainy Day Fund

A home equity line of credit can be a safety net, should any unforeseen expenses arise.

Home Equity Fixed-Rate Loan Option [4]

Enjoy predictable monthly payments by locking some or all of your Variable-Rate HELOC to a Fixed-Rate Loan for no additional cost.

Benefits of a Fixed-Rate Loan Option

  • Protection from rising rates

  • As many as three (3) Fixed-Rate Loan Option balances at one time

  • The ability to draw a minimum of $10,000 for each Fixed-Rate Loan

  • 5-year, 10-year, and 20-year repayment terms

How Does a Fixed-Rate Loan Option Work?

Example: $100,000 Total Home Equity Line of Credit

$40k
$10k
$50k
Kitchen Renovation
Debt Consolidation
Available Credit at Variable Rate

Helpful home equity resources suggested for you.

How to Use Home Equity

How to use home equity

Learn about home equity lines of credit, the application process, and the rates that Bethpage Federal Credit Union has to offer.

Understanding Mortgages

How to get the most out of your home equity line of credit

Discover how a home equity line of credit can be used for home improvements, paying off your mortgage, funding college education, & more!

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Personable and professional!

The loan representative and closing agent were personable and knowledgeable. Branch staff are always helpful and expeditious, which eliminated wait times.

- Graham M., January 2020

Explore the most commonly-asked home equity questions.

Do I qualify for a Home Equity Line of Credit (HELOC)?

If you own your home, you’re eligible to apply for a home equity line of credit. We’ll evaluate certain criteria to determine if you qualify, such as your credit history, employment, income and the amount you wish to borrow. Another key factor is your home’s Loan-To-Value ratio (LTV), which is the relationship between your current mortgage balance and the value of your home.

Contact Us and a home lending specialist will follow up with you to discuss your options.

How big of a HELOC do I qualify for?

The amount of credit you qualify for depends on the market value of your home, current mortgage balance, credit history and other criteria.

For example, let’s say your home is worth $500,000. How much you can borrow starts with 70% of that value, or $350,000. Next, subtract your mortgage balance from $350,000. So, if you currently owe $250,000 on your mortgage, then $350,000 less $250,000 means you have $100,000 in home equity that you can borrow against.

To estimate how much you may be able to borrow, Contact Us and a home lending specialist will follow up with you to discuss your options.

How do I qualify for the best HELOC rate?

Rates are dependent upon your credit history and your home’s Loan-To-Value ratio (LTV), which is the relationship between your current mortgage balance and the value of your home. Loan to value is determined by your current mortgage balance in relation to how much your property is worth.

Automatically deducting your payments from your Bethpage checking or savings account will help you get the best interest rate.

Contact Us to learn more about how to get the best rate.

How long does it take to get the funds?

On average it takes 4 to 6 weeks from the date of your application to close on your HELOC. Some loans may close faster. You can minimize the length of time as much as possible, by providing all required supporting documents up front -- such as proof of income, homeowners insurance, etc.

The documentation you will need to obtain a Home Equity Line of Credit includes:
- Most recent pay stubs covering the last 30-day period
- Past two years of W-2 Forms from all employers (current & previous)
- 2 most recent bank statements (all pages). Include all accounts used for transaction
- Past 2 years of Federal Tax returns (1040 Form) with all pages and schedules (if applicable, self-employed/rental income/retirement income)

As you go through the process, additional documentation may be needed.

How do I pay back a HELOC?

During the 10-year draw period, which is the amount of time when you’re allowed to borrow against your line of credit, you’ll be making payments every month based only on the interest due on the variable amount you’ve borrowed. If you convert any available funds to the fixed rate loan option, your repayment terms for the fixed rate portion will include principal and interest payments for the term you select.

Once the draw period ends, you’ll be required to repay any outstanding HELOC variable-rate balance loan with monthly principal and interest payments over a 20-year term.

Do I need an appraisal?

Whether-or-not an appraisal will be required is dependent upon the amount of your HELOC and your home’s Loan-To-Value ratio (LTV), loan to value is determined by your current mortgage balance in relation to how much your property is worth. Your Bethpage Lending Representative will let you know if an appraisal is required during the lending process.

Please note that homes located outside of the Long Island, NY area require appraisals, as do condominiums whether within or outside of Long Island.

Is it better to refinance my mortgage or get a HELOC?

There are several factors including whether-or-not you qualify for a HELOC at an interest rate lower than your current mortgage rate, and your reasons for wanting the loan or line of credit to start with.

Contact Us to learn more about your best option.

Is HELOC interest tax deductible?

Situations vary, so please talk to your tax accountant about whether-or-not your HELOC will be tax deductible.

Does Bethpage offer a home equity loan?

When you have a home equity line of credit with Bethpage, You may convert all or a portion of your outstanding HELOC variable-rate balance to a Fixed-Rate Loan Option, resulting in fixed monthly payments at a fixed interest rate. The minimum outstanding balance that can be converted into a Fixed-Rate Loan Option is $10,000 from an existing HELOC account. The minimum loan term is 5 years, and the maximum term will not exceed the account maturity date. No more than three (3) Fixed-Rate Loan Options may be open at one time. Rates for the Fixed-Rate Loan Option are typically higher than variable rates on the HELOC. Bethpage doesn’t offer standalone home equity loans that are not part of a home equity line of credit.

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