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Home Equity

10-Year DRAW

2.75%
APR*
 
Interest Rates Certified by Datatrac
OVERVIEW

FLEXIBLE FINANCING TO CELEBRATE LIFE'S MILESTONES - AND HELP WITH THE HURDLES

Weddings. College tuition. Home improvements. Debt consolidation. Many of life’s hurdles and milestones, however memorable or mundane, come at a cost. That’s where we come in. With Direct Federal’s low rates on a Home Equity Line, and superior service you simply won’t find anywhere else, you can stress less about borrowing – and get on with living.

  • Super-low rates. Your APR will be 0.75%* less than Prime, subject to a minimum of 2.75%. (APR may vary monthly based on fluctuations in the Prime Rate.)
  • Flexibility custom-fit to your needs. Borrow up to 80% of the equity in your home**; with Equity Lines from $20,000 to $300,000; plus 10-year draw period with interest only payment options.
  • Hassle-free from start to finish. Apply in minutes, close quickly – and for questions along the way, a real person will pick up the phone every time you call.
  • No surprise fees or expenses***. No closing costs, no application fees, no annual fees, no recording fees.
  • Service extras. Free title search and complimentary credit report.

 

Learn More

TO CHECK THE STATUS OF YOUR HOME EQUITY LINE, PLEASE CLICK HERE

**Equity is determined based on the current year assesed value. Member may choose to purchase an appraisal if seeking a higher value. Appraisal fees begin at $275.

***A field appraisal will be required for line amounts greater than or equal to $250,000. Appraisal to be paid by member. Appraisal fees begin at $275.

 

RATES

Rates

HELOC    
TERM Up to 20 years
RATE* 2.75% APR* Prime -.75 for Life.
Repayment Period After 10 years
APR TERM Repayment Period  

2.75% APR*

Up to 20 years After 10 years   Apply Now

 

*The rate listed is the Annual Percentage Rate (APR) which is variable and is equal to the Wall Street Journal prime rate minus 0.75%, subject to a minimum rate of 2.75% and a maximum rate of 21% or the maximum rate permitted by law, whichever is less. Prime as of 12/31/15 was 3.50%. This APR is available for new home equity lines only. Line must be secured by a primary residence that is a single family home or condo. Maximum loan to value is 80%. A $395 fee will be assessed if the line is closed within the first two years. Rates are subject to change. Property insurance will be required. Subject to credit approval.

CALCULATORS

Calculators

For a ten year draw period, this calculator helps determine both your interest-only payments and the impact of choosing to make additional principal payments.

This calculator helps determine your loan or line payment. For a loan payment, select fixed-term loan. For a credit line payment, you can choose 2%, 1.5% or 1.0% of the outstanding balance or interest only.

When will your line of credit be paid off? Use this calculator to see what it will take to payoff your line of credit, and what you can change to meet your repayment goals.

Managing your monthly budget can be difficult and frustrating. One of the most important aspects of controlling your budget is to determine where your money is going. This calculator helps you do just that. By entering your income and monthly expenditures, you can see how much you have left to save and where your money is being spent. In addition, you can click the "View Report" to see your entries results in detail, which can help identify areas for improvement.

LEARN MORE

Learn More

A Home Equity Line is a convenient, affordable way for many people to borrow money. Since the line is secured by the equity in your home—basically the difference between your outstanding mortgage balance and the appraised value of your home—interest rates tend to be low. When you pay down your balance, that amount then becomes available to borrow again. Essentially, you can borrow what you need when you need it—simply write a check or transfer money to your Direct Federal Checking or Savings account using our web or phone banking systems. As an added benefit, all the interest you pay is usually tax-deductible.

FAQs
FAQs

What fees or costs are associated with a Home Equity Line from Direct Federal?

There are no application fees, no appraisal fees, no closings costs and no annual fees associated with a Direct Federal Home Equity Line.

There are no application fees, no closings costs and no annual fees associated with a Direct Federal Home Equity Line (appraisal fee applies if line is greater than or equal to $250,000) . If you pay off and close your Line within the first 24 months, you will be charged a $395 fee to offset a portion of the costs incurred to open your line.

How much can I borrow?

You may borrow up to a maximum loan-to-value (LTV) of 80%.

You may borrow up to a maximum loan-to-value (LTV) of 80%. To calculate the maximum line for which you can apply, simply multiply the appraised value of your home by 80% and deduct your mortgage balance. For example, if your home is appraised for $400,000 and your mortgage balance is $200,000, you can borrow up to a maximum of $120,000. ($400,000 x 80% = $320,000 - $200,000 = $120,000).

What is the "Draw Period"?

The Draw Period is the period of time you can access funds from your Home Equity Line.

The Draw Period is the period of time you can access funds from your Home Equity Line. Direct Federal offers a ten-year Draw Period.

What is the "Repayment Period"?

At the end of your Draw Period, you will enter the Repayment Period. The Repayment Period is the time during which you make monthly principal and interest payments to gradually pay off your balance.

At the end of your Draw Period, you will enter the Repayment Period. The Repayment Period is the time during which you make monthly principal and interest payments to gradually pay off your balance. Once you enter the Repayment Period, your line is closed to further advances. Direct Federal offers a ten-year Repayment Period.

I would like to open a Home Equity Line. What is the minimum or maximum amount I can apply for?

With Direct Federal, you can open a Home Equity Line for any amount between $20,000 and $300,000.

With Direct Federal, you can open a Home Equity Line for any amount between $20,000 and $300,000.

How long does it take to apply and receive a decision?

It takes about five minutes to apply and you will have an answer within one day.

It takes about five minutes to apply and you will have an answer within one day. Most of our home equity lines close within three weeks.

What documentation is required to close a Home Equity Line?

You will need your insurance binder, most recent year-to-date paystub verifying income (or current federal tax return for self-employed), utility bill confirming your primary residence and if applicable, a flood certificate.

You will need your insurance binder, most recent year-to-date paystub verifying income (or current federal tax return for self-employed), utility bill confirming your primary residence and if applicable, a flood certificate.

Can I pay off a Home Equity Loan or Line with another lender using a Direct Federal Home Equity Line?

Yes.

Yes. If you have an existing second mortgage on your property, we will advance your new Direct Federal Home Equity Line to pay off and close your existing Loan or Line with another
lender.

Does my property qualify for a Home Equity Line?

If you have a 1-2 family primary residence in Norfolk, Middlesex, Plymouth, Suffolk, Essex, Barnstable or Bristol County, you are eligible for a Direct Federal Home Equity Line.

If you have a 1-2 family primary residence in Norfolk, Middlesex, Plymouth, Suffolk, Essex, Barnstable or Bristol County, you are eligible for a Direct Federal Home Equity Line. Home Equity Lines are not available on 3-4 family homes, vacation homes, investment properties, or properties that you intend to sell within the next year, properties with a life interest or life estate, or properties built on leased land.

What is the interest rate on a Home Equity Line?

Your interest rate will be Prime minus 0.75%; subject to a minimum of 2.75%

Your interest rate will be Prime minus 0.75%; subject to a minimum of 2.75%; and subject to a maximum of 21% (or the maximum allowed by law). Your rate will vary as Prime changes, but the margin between your rate and Prime will always be -0.75%.

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