Equity LinePLUS
DCU Equity LinePLUS – The Best of Both Worlds
A typical home equity line of credit gives you a pool of credit you can return to whenever you need it. A DCU Home Equity Installment Loan gives you a choice of fixed terms at rates often below line of credit rates. Our Equity LinePLUS* home equity program gives you both. Here's how...
*DCU offers Home Equity Lines of Credit in all States with the exception of Connecticut, Texas, North Carolina, Wisconsin and West Virginia.
A Convenient Line of Credit
When you open your Equity LinePLUS, you get a line of credit with these features...
- Interest that's tax deductible for most people. The Internal Revenue Service at www.irs.gov (publication 936) and your State Department of Revenue have more information on deductibility.
- No prepayment penalties
- Low variable rate as low as Prime minus 1/4%‡ on line of credit advances. Your rate is determined by your personal credit history. Rates can change monthly.*
- No minimum line advance or line balance requirements
- Borrow up to 80%** of your home's value minus your mortgage balance
- Lines start at $5,000***
- 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 CentersSM 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.
State mortgage taxes in FL, KS, MD, MN, NY, OK, TN, and VA. * 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. **80% LTV Max. Other restrictions may apply.
*** 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).
‡ 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 LinePLUS 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.
Fixed-Rate Advances Feature
Once your Equity LinePLUS is open, you can have up to two advances from your line at any given time as Fixed-Rate Home Equity Loans. Each advance is a one-time disbursement of funds to you with fixed monthly payments for the term of the advance. This is a popular choice for major one-time purchases (such as a new car, motor home, or boat) or for bill consolidation. These fixed-rate advances have these features...
- Available with terms up to 5, 10, 15, or 20 years
- At same rates for regular Fixed-Rate Home Equity Loans
- Minimum $5,000 draw
- As you pay back the fixed-rate loan portion, that amount becomes available again to borrow through the line of credit
- Automatic loan payments by transfer from one of your DCU checking or savings accounts is available through DCU or set up by you on PC Branch
- Separate account on your statement for easy tracking
The rate on fixed-rate advances is set at the time of the advance based on your personal credit history and remains fixed until the entire advance has been repaid. Please refer to a Early Federal Disclosure, available at any branch or by email request.
Why Should You Consider Equity LinePLUS?
Equity LinePLUS has some advantages over traditional home equity loan options.
- Save interest over a pure Line of Credit – Interest rates for short term fixed-rate advances are often 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.
- Match the length of the loan to the purpose – If you want to finance a car for five years with Equity LinePLUS, you can get a 5-year fixed-rate advance. To pay off a standard line of credit that fast, you'd have to remember to make additional principal payments along the way.
Comparing DCU Options
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 |
| 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 |
Maximum Loan
Percentage of home value |
90%* |
80%** |
| Minimum Loan or Line |
$5,000 |
$5,000 for initial line and $5,000 for each fixed-rate advance |
| 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 |
| Annual Fees |
None |
None |
| Prepayment Penalties |
None |
None |
| Tax Advantage |
Yes |
Yes |
*90% LTV for MA and NH. All other states 80% LTV Max. Other restrictions may apply.
**80% LTV Max. Other restrictions may apply.
Rates and Applications
Apply for Home Equity Loans Apply Online or by calling 800.328.8797. 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.
Need insurance on your home?
 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.
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Digital Federal Credit Union220 Donald Lynch Boulevard PO Box 9130 Marlborough, MA 01752-9130 508.263.6700 • 800.328.8797
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© 2011. Digital Federal Credit Union
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