DCTFCU is currently not offering Home Equity Lending Products. Please check back at a later time.
Home Equity Fixed-Rate Loan
For a one-time major expense, a Home Equity Loan that is disbursed in one lump sum is the way to go. Pay it off whenever you’d like before then, as there is no prepayment penalty. Borrow up to 80% of your home’s equity, a maximum of $150,000, and put it to work for you.
Home Equity Loan RatesProduct is no longer available effective June 2023
|1st Position Lien||70% Equity APR||Max. Loan||80% Equity APR||Max. Loan|
|2nd Position Lien||70% Equity APR||Max. Loan||80% Equity APR||Max. Loan|
Home Equity Line of Credit
Unlike a fixed-rate loan, a line of credit gives you a replenishing cash reserve that can amount to as much as 80% of your home’s equity, up to $100,000. This option is a better choice for long term projects, or just as backup funds for needs as they arise. 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, but like all our loans, can be paid off early without penalty and interest is charged only on the declining balance.
Home Equity Line of Credit RatesProduct is no longer available effective June 2023
|Borrower||70% Equity APR||70% Equity Max.||80% Equity APR||80% Equity Max.|
|A+ Borrower||Prime plus 1.0%||$125,000.00||Prime plus 1.25%||$100,000.00|
|A Borrower||Prime plus 1.25%||$100,000.00||Prime plus 1.50%||$75,000.00|
|Established Member||Prime plus 1.50%||$75,000.00||Prime plus 1.75%||$50,000.00|
Learn More About Home Equity
Looking for a Tax Deduction?
Unlike other loans, the interest you pay on a home equity lending product may be tax-deductible. Consult your professional tax advisor to find out what the possible tax advantages would be in your case.
Calculating Your Available Equity
Calculate how much you could borrow with a home equity loan or line of credit using 80% of your home’s equity:
- Multiply your home’s current appraised market value by 80% (.80).
- Subtract your outstanding mortgage balance.
- 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. Eighty percent of $200,000 would be $160,000. Subtract $110,000 from that and you have the amount you can borrow: $40,000.
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.
Get Started Today
To apply for a Home Equity Loan or Line of Credit, please contact us to request our Home Equity Kit with application.
*APR= Annual Percentage Rate LTV=Loan to Value Ratio. All rates and terms are based on an evaluation of each member’s credit history‚ loan-to-value (LTV) payment type, loan amount‚ and loan purpose‚ so your rate and terms may differ. All loans are subject to credit approval. Fixed or Variable Rate Home Equity Mortgages are available for primary residences only. Mortgage Insurance is required on all mortgage loans. Fees: Application fee $75.00. Origination fee $300.00. You must also pay certain fees to third parties. An itemization of these fees can be supplied upon request. Home Equity Fixed Rate and Term Rate is fixed for 240 months. Fixed Rate Payment Example: If you had and outstanding balance of $150‚000 the repayment of principal and interest would be 360 equal monthly installments of $851.67. Home Equity Line of Credit Variable Rate Mortgages: The rate is variable‚ and your APR may increase. The Annual Percentage Rate is based on the value of an index. The index is the Prime Rate as published in the Money Rates Section of The Wall Street Journal on the first business day of each month. To determine the Annual Percentage Rate that will apply to your line of credit‚ we add a margin to the value of the index. Ask us for the current index value‚ margin and Annual Percentage Rate. Term — Total 240 months; Credit Advances or Draw Period 84 months‚ Repayment 156 months. Your Annual Percentage Rate can change on the 1st day of each month. Your interest rate cannot increase or decrease more than 1.00 percentage point each month. The maximum Annual Percentage Rate at any time is 18.00%. Maximum Rate And Payment Examples If you had an outstanding balance of $10,000 during the draw period‚ the minimum payment at the maximum Annual of 18.00% would be $154.35.If you had an outstanding balance of $10,000 during the repayment period‚ the minimum payment at the maximum Annual Percentage Rate of 18.00% would be $154.35. Direct Deposit and/or Payroll Deduction required for C and D Borrowers.
Home Mortgage Disclosure Act (HMDA). The HMDA data about our residential mortgage lending are available online for review. The data show geographic distribution of loans and applications; ethnicity, race, sex, age, and income of applicants and borrowers; and information about loan approvals and denials. These data are available online at the Consumer Financial Protection Bureau’s website (www.consumerfinance.gov/hmda). HMDA data for many other financial institutions are also available at this Web site.