Borrow up to 80% of the equity in your home*** ; with Equity Lines from $20,000 to $500,000.
10-year draw period with interest-only monthly payment options.
Convert all or a portion of your balance or available credit to a fixed rate loan.****
Already have a Home Equity Line at another financial institution?Refinance.
Don’t let that stop you from upgrading to the fastest growing credit union in Massachusetts. You can refinance your existing Home Equity Loan or Line and open one with Direct Federal. Don’t miss out on our market-leading rates. Start saving money each month and refinance today.
Property Located in MA, RI, or NH
Primary Residences Only
1-4 Family Home or Condo
* | The rate listed is the Annual Percentage Rate (APR) which is variable and is equal to the Wall Street Journal prime rate minus 0.50%, subject to a minimum rate of 8.00% and a maximum rate of 18% or the maximum rate permitted by law, whichever is less. Prime as of 5/4/2023 was 8.50%. This APR is available for new home equity lines only. Line must be secured by a 1-4 family home or condo. Primary residences only. The maximum loan to value is 80%. A $395 fee will be assessed if the line is closed within the first two years. Rates are subject to change. Property insurance will be required. Subject to credit approval.
** | A field appraisal will be required for line amounts greater than or equal to $400,000. Appraisal to be paid by member. Appraisal fees begin at $400 for single family and $550 for multi-family. Homes recorded in a Trust- fee’s may apply.
*** | Equity is determined based on the current year assessed value. Member may choose to purchase an appraisal if seeking a higher value. Appraisal fees begin at $400 for single-family and $550 for multi-family.
**** | Fixed rate loan option is only available during the home equity line of credit draw period. Minimum conversion amount is $5,000. Options available for fixed rate terms of 5, 10, or 15 years provided no fixed rate loan extends more than 30 years from the initial date of the mortgage that secures your home equity line of credit. Maximum of 3 fixed rate loans. The annual percentage rate for the fixed rate loan will be equal to an index plus a margin. Call for information about current index values and margins.
***** | Annual Percentage Rate (APR). The interest rate and APR are subject to change. Loan must be secured by a 1-4 family home or condo. Primary residences only. Maximum loan to value is 80%. Property insurance will be required. Subject to credit approval.
IF I ALREADY HAVE A HOME EQUITY LINE AM I ELIGIBLE FOR AN INCREASE?
Yes, please apply online. There are no fees if it is once per calendar year.
WHAT IS THE "REPAYMENT PERIOD"?
At the end of your Draw Period, you will enter the Repayment Period. The Repayment Period is the time during which you make monthly principal and interest payments to gradually pay off your balance.
DOES MY PROPERTY QUALIFY FOR A HOME EQUITY LOAN OR LINE?
If you have a 1-4 family primary residence in Norfolk, Middlesex, Plymouth, Suffolk, Essex, Barnstable or Bristol County, you are eligible for a Direct Federal Home Equity Loan or Line.
I WOULD LIKE TO OPEN A HOME EQUITY LOAN OR LINE. WHAT IS THE MINIMUM OR MAXIMUM AMOUNT I CAN APPLY FOR?
With Direct Federal, you can open a Home Equity Loan or Line for any amount between $20,000 and $500,000.
CAN I PAY OFF A HOME EQUITY LOAN OR LINE WITH ANOTHER LENDER USING A DIRECT FEDERAL HOME EQUITY LOAN OR LINE?
WHAT FEES OR COSTS ARE ASSOCIATED WITH A HOME EQUITY LOAN OR LINE FROM DIRECT FEDERAL?
There are no application fees, no appraisal fees, no closings costs and no annual fees associated with a Direct Federal Home Equity Loan or Line.
HOW MUCH CAN I BORROW?
You may borrow up to a maximum loan-to-value (LTV) of 80%.
HOW LONG DOES IT TAKE TO APPLY AND RECEIVE A DECISION?
It takes about five minutes to apply and you will have an answer within one business day.
WHAT DOCUMENTATION IS REQUIRED TO CLOSE A HOME EQUITY LOAN OR LINE?
You will need your insurance binder, most recent year-to-date paystub verifying income (or current federal tax return for self-employed), utility bill confirming your primary residence and if applicable, a flood certificate.
WHAT IS THE "DRAW PERIOD" ON A HOME EQUITY LINE?
The Draw Period is the period of time you can access funds from your Home Equity Line.
Equal Housing Lender. Your savings are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency.