Bethpage Federal Credit Union: 2024 Home Equity Review

At a glance

Benefits

• Bethpage Federal Credit Union’s HELOC rates tend to be lower than Bankrate’s national average.
• The credit union covers the closing costs on lines up to $500,000. You won’t have to pay an application, appraisal or origination fee, either.
• You can convert some or all of your variable-rate HELOC to a fixed-rate HELOC without incurring a fee. (You’ll need to draw a minimum of $10,000 for each fixed-rate loan, but you can choose between five-, 10- and 20-year repayment timelines.)

Drawbacks

• While you can convert your HELOC to a fixed-rate loan, Bethpage doesn’t offer a separate home equity loan product.
• If you close your HELOC within three years of opening it, you’ll need to repay the closing costs Bethpage waived, which could run anywhere from $500 to $15,000.
• Bethpage is a credit union, which means that membership is required to obtain a HELOC. To become a member, you’ll need to open a savings account with a minimum deposit of $5.

Home equity loan products offered

Bethpage Federal Credit Union offers HELOCs with a 10-year, interest-only initial period and a 20-year repayment term after that. You also have the option to convert some or all of your current balance to a fixed-rate loan with a five-, 10- or 20-year repayment period at no additional fee — although the maximum term can’t exceed your account maturity date. To convert, you’ll need to draw at least $10,000. You can have up to three fixed-rate loan balances at a time.

Types of fees charged

Bethpage Federal Credit Union doesn’t charge HELOC closing costs, application fees or origination fees. However, you’ll need to repay the closing costs you would’ve paid if you close your HELOC within three years. There is no fee to convert some or all of your HELOC to a fixed-rate loan. You can also earn a discount on your rate by setting up automatic HELOC payments from a Bethpage checking or savings account.

How to qualify for a HELOC with Bethpage Federal Credit Union

To qualify for a Bethpage HELOC, you need to become a member, which requires opening a savings account with a minimum of $5. You will also need to have homeowners insurance and, in some cases, flood insurance.

Bethpage’s best rates typically go to borrowers with a maximum combined loan-to-value (CLTV) ratio of 65 percent and who make an initial draw of at least $25,000. You can take advantage of the lower introductory rate as long as you haven’t obtained an intro rate in the past five years; your CLTV is below 75 percent; you draw $25,000 initially and maintain that balance for one year; and set up auto-payments.

Note: Bethpage Federal Credit Union doesn’t offer HELOCs to borrowers in Texas.

How to apply with Bethpage Federal Credit Union

If you’re interested in applying for a HELOC from Bethpage Federal Credit Union (and already a member), you can request a call from a loan officer online, call 855-330-6630 or visit a branch. Representatives are available Monday through Friday from 8 a.m. to 6 p.m. ET and Saturday from 10 a.m. to 8 p.m. ET.

How Bankrate scored Bethpage Federal Credit Union

• Methodology

  To determine a home equity lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability: Annual percentage rate (APR) - 80%; introductory APR - 20%
  • Availability: Licensing - 50%; credit score - 20%; loan minimum - 10%; draw requirement - 10%; loan products - 10% 
  • Borrower experience: Rate transparency - 45%; convenience - 35%; customer service - 10%; fixed-rate options - 10%

  Learn more about our methodology.