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Home Equity

10-Year DRAW

3.00%
APR1
car interior
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 our low rates on both Home Equity Loans and Lines , and superior service you simply won’t find anywhere else, you can stress less about borrowing – and get on with living. Our Home Equity Lines and Loans have no closing costs, no application fees, no annual fees and no recording fee. Tired of high interest credit cards? HELOCS and HELOANS can be the cheapest way to borrow. 

Home Equity Line of Credit
 

  • Super-low rates.
    Your APR will be Prime minus 0.50%1 which is currently 2.49% APR. 
     
  • Flexibility custom-fit to your needs.
    Borrow up to 80% of the equity in your home2; with Equity Lines from $20,000 to $500,000; plus 10-year draw period with interest only monthly payment options.
     
  • Ability to lock-in all or a portion of your line to a fixed rate.3
    Concerned about rates rising? Convert a portion of your balance or available credit to a fixed rate loan.  Don’t let rising rates prevent you from having the flexibility of a line of credit.
     
  • No surprise fees.
    No closing costs, no application fees, no annual fees and no recording fee.4
     

Home Equity Loan
 

  • Market-leading rates.
    Starting at 3.75% APR5 you will get one of the lowest fixed rates you can find with NO teaser/introductory rate.
     
  • Flexible terms.
    Choose from 5, 10, 15, or 20-year terms depending on your specific needs.
     
  • Borrow $20,000 to $500,000.
    Depending on the equity you have in your home, you can borrow anywhere from $20,000 up to $500,000.
     

REFINANCE

Already have a Home Equity Loan or Line at another financial institution? Don’t let that stop you from upgrading to the fastest growing credit union in Massachusetts. You can refinance your existing Home Equity Loan or Line and open one with Direct Federal. Don’t miss out on our market-leading rates. Start saving money each month and refinance today. Click on the Apply Now button below to get started.


 

Already applied for a Home Equity Line? Click here to check the status of your application.

Already have have an existing Home Equity Line with Direct Federal? Click here to convert a portion of your balance or available credit to a Fixed-Rate Loan. Lock in your rate today.


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FAQs
FAQs

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 Loan or Line. What is the minimum or maximum amount I can apply for?

With Direct Federal, you can open a Home Equity Loan or Line for any amount between $20,000 and $500,000.

With Direct Federal, you can open a Home Equity Loan or Line for any amount between $20,000 and $500,000.**

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

Yes.

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

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).

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 business day.

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

What documentation is required to close a Home Equity Loan or 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.

What is the "Draw Period" on a Home Equity Line?

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.

Direct Federal Credit Union and all of our employees who serve as Mortgage Loan Originators are registered with the Nationwide Mortgage Licensing System NMLS. Please click here to view the list.

 

Direct is located in Needham, Massachusetts and services Norfolk and Middlesex Counties.