Home Equity Loans
and Lines of Credit

Your home's equity is the difference between its market value and any outstanding mortgage indebtedness you may have. We offer two ways to use that equity: one-time loans and lines of credit. Both can be good ways to borrow money for major expenses, such as renovating your home.

Loans
For one-time purchases for which a line of credit wouldn't be appropriate, get a single loan disbursed in one lump sum payment. Get a lower rate for a shorter term or lower payments and a longer term (up to 20 years). You can borrow up to 90% of your equity.

Lines of Credit
A line of credit gives you a self-replenishing cash reserve that can amount to as much as 90% of your home's equity. Line of credit funds are accessible by CU Online home banking and MacLine voice response, as well as by regular telephone requests. Payments are based on a 20-year term.

Looking for a Tax Deduction?
Home equity loans have a limit of $200,000 for fixed-rate and $175,000 for variable-rate. Lines of credit have a $125,000 limit. As with all our loans, there is no prepayment penalty and interest is charged only on the declining balance. Unlike other loans, the interest may be tax-deductible. A professional tax advisor can tell you what the possible tax advantages would be in your case.

Calculating Your Available Equity
Here's how to calculate how much you could borrow with a loan or line of credit using 90% of your home's equity:

1. Multiply your home's current appraised market value by 90% (.90).
2. Take the result and subtract your outstanding mortgage from it.

What you have left is your available home equity.

For example, let's say your home's current appraised market value is $200,000 and your outstanding mortgage balance is $110,000. Ninety percent of $200,000 would be $180,000. Subtract $110,000 from that and you have the amount you can borrow: $70,000.

A Word of Caution
When you get a home equity loan or line of credit, you use the deed to your home as collateral. Be sure to exercise caution in using the funds or you may find yourself in over your head and at risk of losing your home. The consequences of defaulting on a home equity loan are obviously worse than those for failing to pay many other debts.

To apply for a Home Equity loan or line of credit, please request our Home Equity Kit with application. You may call 202-547-4800 or email your request to the loan department at info@dctfcu.org.

See our current rates.

Use our Loan Calculator to see how much your payments would be on a loan or how much you can borrow at a certain payment amount.

Use our Loan Comparison Calculator to compare interest rates and loan amounts. You can have it increase the interest rate incrementally. The resulting table will show you the loan payments for various interest rates and loan amounts.

Use our Pre-qualification Calculator to determine the maximum mortgage amount for which you might qualify.

Account Terms, Disclosures & Agreements