Why Home Equity Loans?

• Home Equity Lines of Credit – Sometimes called HELOCs, these loans give you a credit limit you can borrow against. As you pay back your loan advances, those amounts again becomes available to borrow. HELOCs typically have a draw period (the number of years during which you can take loan advances) and a repayment period (the maximum number of years you can take to repay any balance remaining at the end of the draw period). The ability to get advances whenever you need them is the big advantage of HELOCs. For example, if you are building an addition to your home, you can write a HELOC check for each expense as it comes up. You only begin to pay interest on each amount as the check clears your account.
  HELOCs have variable rates that follow a published index. The Prime Rate is most often used. The Prime is the rate a bank charges its best business customers for commercial loans. The actual rate you pay will be expressed as a percentage above or below the index. For example, if the loan rate is Prime + 1% and Prime is 7%, your fully indexed rate will be 8%. As the index moves up or down, so can your rate – typically once a month.
  You can make advances on most lines of credit by simply writing a check. DCU also allows you to make advances by transfer to another DCU account using PC Branch, Easy Touch, DCU ATMs, or at the teller counter.
• Fixed-Rate Home Equity Loan – Also known as a Home Equity Loan or Home Equity Installment Loan, this loan gives you a one-time loan advance. The monthly payment and interest rate remain the same for the life of your loan much like an auto loan. People generally use Fixed-Rate HELs for a single major expense such as an auto purchase.
• Combination Loans – These loans are the most convenient but are the most challenging to understand. In a combination loan, the primary account is a HELOC that works as other HELOCs do. The combination feature lets you take a portion of your line of credit and set it up as a fixed-rate advance. As the principal on the fixed-rate portion is paid down, it becomes available to borrow again on the line of credit portion.
  Why is this advantageous? Say you decided to buy a car with your home equity, but wanted to pay it off in five years. You can get a fixed-rate advance for the car and pay it off in equal payments for the five years. If you paid it with the line portion, your monthly payment would vary with changes in rates and changes in your balance, making budgeting the payments more difficult. However, if you just got a fixed-rate HEL, you'd have to open another loan the next time you wanted to finance something. What's more, depending on how the institution sets rates on these loans, the line portion or the loan portion could have a better rate when you are ready for an advance. You can choose the option that saves you the most without having to open a new loan.

• Reasonable minimums – Banks like Bank of America require a $25,000 balance to get a good rate. DCU has no minimum draw on our Line of Credit and only $5,000 on Fixed-Rate Loans. Your rate is not tied to the size of your loan.
• No annual fee – Many banks charge you to have a Line of Credit. We don't!
• Borrow up to 80% of appraised value at our best rates – Many other institutions substantially raise your rate to go higher.
• No closing costs*, application fees, early closing fees, or credit report fees – You could see any of these charges at other institutions.
• 20-year draw and 20-year repayment on lines – Most institutions cut off your line access after 10 years. We think you'll need it longer, especially if you're using it to put several children through college.
• Easy to apply – Apply online or by phone 24 hours a day. You may already be approved, too. Log into PC Branch from the home page to check and accept online.
• No tricky introductory rates –  With our Home Equity Line of Credit, you start out with your regular rate – as low as Prime minus 1/4%. Your actual rate is determined by your personal credit history.

• Equity LinePLUS – A home equity line of credit with optional fixed-rate, fixed-term advances. No points, closing cost, minimum draw, or annual fees.
• Equity Line 1-2-3 – A home equity line that is as easy as 1-2-3! The rate for the life of the loan will always be 1.23% below prime. If you have significant equity and an outstanding credit history, this is the Equity Line for you!
• Home Equity Installment Loans – Fixed-rate, fixed-term loans up to 20 years.

• Apply Online – Most members get an answer while still online.
• Apply by Phone – Call 508.263.6700 or 800.328.8797 and select 3 anytime. Most members get an answer while still on the phone.
• Apply at any DCU Branch – Open weekdays, Thursday and Friday evenings, and Saturdays at most locations. Branch locations.