Equity Line 1-2-3
A Home Equity Line that is as easy as 1-2-3! If you have significant equity and outstanding credit history, DCU's Equity Line 1-2-3 is for you! DCU's Equity Line 1-2-3 offers tremendous savings over typical Home Equity Loans. The rate will always be 1.23% below prime. Home Equity Loans are the only type of loan where you can borrow for any purpose and, for most people, the interest is tax deductible. The tax advantages and low rate of Prime minus 1.23% make DCU's Equity 1-2-3 even more affordable!
*DCU offers Home Equity Lines of Credit in all States with the exception of Texas and Connecticut.
A Convenient Line of Credit
When you open your Equity Line 1-2-3, you get a line of credit with these features...
- Interest that's tax deductible for most people. Interest on first $100,000 balance is deductible on federal taxes. Other restrictions may apply. The Internal Revenue Service at irs.gov (publication 936) and your State Department of Revenue have more information on deductibility.
- No application fees or closing costs**
- Low variable rate–Prime minus 1.23%‡! Rates can change monthly.***
- Borrow up to 80% of your home's value minus your mortgage balance
- Lines start at $200,000. Minimum $20,000 balance to avoid $20 monthly inactivity fee.
- Low minimum payment – Only 1% of outstanding balance due each month
- 24-hour access to your line via PC Branch, Easy Touch Telephone Teller System, DCU ATM, DCU and CU Service Centers® branches, and line-of-credit checks
- 20-year draw and 20-year repayment periods – Plenty of time to meet your borrowing needs without the need to refinance or apply for more.
- Can be used as overdraft protection for your DCU Checking Account. Mention this option to your Mortgage Specialist when you apply if interested.
** No closing costs excludes state mortgage taxes in FL, KS, MD, MN, NY, OK, TN, and VA.
** Please be aware that current market conditions may limit the amount of financing DCU can provide (examples: low property values, property located in a declining value area).
*** The maximum Annual Percentage Rate (APR) is 18%. Please refer to DCU's Early Federal Disclosure for more information. It's available at any branch or by email request.
‡ Minimum Rate 4.00% Annual Percentage Rate (APR).
A line of credit is great for home improvement projects, college tuition, and any other major expense where you expect to see more than one bill. It's great for unexpected expenses such as car repairs or a new roof when you may not want to dip into your savings.
Equity Line 1-2-3 line advances, as with ordinary home equity line of credit advances, have variable rates because it is a type of revolving credit with no fixed term. At DCU, your rate can change up or down once each month. It's tied to the Prime Rate published in the Wall Street Journal. The Prime Rate is the interest rate major banks charge their best business loan customers. It's the most common index used for calculating home equity line rates in the marketplace.
Equity Line 1-2-3 has some great advantages over traditional home equity loan options.
- Save interest over a pure Line of Credit – Interest rates for short term fixed-rate advances will be 1.23% below Prime.
- More flexible than pure fixed-rate home equity loans – Apply once and you can borrow against your line as often as you need.
Here's a side-by-side comparison of DCU's Home Equity Loan options to help you decide which is best for you.
| Major Features | Fixed-Rate Home Equity Loan | Equity LinePLUS | Equity Line 1-2-3 |
|---|---|---|---|
| Type of Rate | Fixed for life of the loan. | Variable as low as Prime minus 1/4% on line advances. Same as Fixed-Rate Loans for fixed-rate advances | Variable, Prime minus 1.23% |
| Maximum Loan Percentage of home value |
100% | 100% | 80%^ |
| Minimum Loan or Line | $5,000 | $5,000 for initial line and $5,000 for each fixed-rate advance | $200,000 |
| Available Terms Balance is Maintained | 5, 10, 15, and 20 year terms | 20 year draw / 20 year repayment on total loan. Fixed-rate advances for 5, 10, 15, or 20 years | 20-year draw/ 20-year repayment on total loan |
| Closing Costs | None | None | None |
| Application Fees | None | None | None |
| Tax Advantage | Yes | Yes | Yes† |
Home Equity 1-2-3 has a $200 early closure fee if it is closed in 2 years or less.
^ Minus your first mortgage balance.
† Interest on first $100,000 balance is deductible on federal taxes. Other restrictions may apply. The Internal Revenue Service at irs.gov (publication 936) and your State Department of Revenue have more information on deductibility.
Apply for Home Equity Loans online or by calling 800.328.8797 (select 3). If you need additional information press 0 and ask to speak with one of our Mortgage Specialists.
Use our Loan Calculators to help you determine the loan financing and payment options that are best for you.
DCU Insurance offers insurance with the personal service you deserve. So whether you have Homeowners Insurance or need it, DCU Insurance could be the right choice for you.
Remember that any insurance required as a condition of the extension of credit by the credit union need not be purchased from DCU Insurance but may, without effecting the approval of the application for credit, be purchased from an agent or insurance company of the member's choice. Insurance products are not deposits of Digital Federal Credit Union (DCU) and are not protected by the NCUA. They are not an obligation of or guaranteed by the credit union and may be subject to risk. Insurance is offered by DCU Financial Insurance Services, LLC, an affiliate of DCU. Business conducted with DCU Insurance is separate and distinct from any business conducted with the credit union. Any questions or concerns regarding this relationship may be addressed to the Office of Consumer Affairs.
|
Digital Federal Credit Union
220 Donald Lynch Boulevard PO Box 9130 Marlborough, MA 01752-9130 508.263.6700 • 800.328.8797 |
|
© 2008. Digital Federal Credit Union