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Home Equity Plus and Home Equity Lines
Which is the Best Fit for Your Plans?
What's the difference between a Home Equity Line of Credit (HELOC) and a Home Equity Loan?
There are many similarities between these two types of home equity financing, but there are also signficant differences. How you plan to use your funds will determine which is a better choice for you. Contact a loan officer and we’ll help you decide which direction to go.
Home Equity Line
Home Equity Loan
Home Equity Line
Home Equity Loan
Funds Disbursement
As Needed
Lump Sum at Closing
Home Equity Line
Home Equity Loan
Interest Rate
Variable
Fixed
Home Equity Line
Home Equity Loan
Draw Period
15 Years
None. Funds Disbursed at Origination.
Home Equity Line
Home Equity Loan
Loan-to-Value Ratio
Up to 90%
Up to 90%
Home Equity Line
Home Equity Loan
Is There a Tax Benefit?
Ask Your Tax Professional
Same
Home Equity Line
Home Equity Loan
Payments
Monthly Payment Based on Amount Advanced
Fixed Monthly Installment Payments
Home Equity Line of Credit
A HELOC variable-rate revolving line of credit puts you in control. Need cash now? Take funds when needed, or get peace of mind knowing your money is available when you need it — use it as a line of credit. You control how much you owe by how much you borrow.
Flexible Payment Options*
- Home Equity Line of Credit (HELOC): During the ”Advance Period,“ pay $12 per $1000 borrowed (or $50 as your minimum) of your outstanding principal.
- Home Equity Line of Credit Interest-Only (HELOC Interest-Only): For the first 5 years make interest-only payments; then pay $12 per $1000 (or $50 as your minimum) of your outstanding principal balance for the remainder of your “Advance Period.” Advance Period means you have 15 years to draw against the line and then after that draw period you have another 15 years to repay.
*Or you can choose to pay additional principal as well. It's your choice.
| APR*1 | Index2 | Margin | Loan to Value3 | Alert Me |
|---|---|---|---|---|
| 7.25% | 7.75% | -0.50 | up to 80% | Receive a notification when this rate changes |
| 8.75% | 7.75% | +1.00 | 80.01% - 90% | Receive a notification when this rate changes |
| *APR: Annual Percentage Rate. Generally, fees paid by Direct Financial. If appraisal required, member-paid fees may range from $350 to $600. For Home Equities in first Mortgage position, members may be required to pay Title Examination fees which may range from $250 to $500 and Title Insurance fees which may range from $1.65 to $2.75 per $1000 borrowed. | ||||
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Home Equity Plus
The proceeds of a Home Equity Plus loan are fully disbursed at the loan closing. Principal plus interest payments begin immediately for the term of the loan. This loan is good for amounts known to you and that you want to repay in a specific time period. It is good for the purchase of autos, RVs, ATVs, education expenses and vacations.
| APR*1 | Term | Monthly Payment per $10002 | Loan to Value3 | Alert Me |
|---|---|---|---|---|
| 5.75%4 | 5 years | $19.22 | up to 80% | Receive a notification when this rate changes |
| 6.75%4 | 10 years | $11.48 | up to 80% | Receive a notification when this rate changes |
| 7.25%4 | 15 years | $9.13 | up to 80% | Receive a notification when this rate changes |
| *APR: Annual Percentage Rate. Generally, fees paid by Direct Financial. If appraisal required, member-paid fees may range from $350 to $600. For Home Equities in first Mortgage position, members may be required to pay Title Examination fees which may range from $250 to $500 and Title Insurance fees which may range from $1.65 to $2.75 per $1000 borrowed. | ||||
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| APR*1 | Term | Monthly Payment per $10002 | Loan to Value3 | Alert Me |
|---|---|---|---|---|
| 6.75%4 | 5 years | $19.68 | up to 85% | |
| 7.75%4 | 10 years | $12.00 | up to 85% | |
| 8.25%4 | 15 years | $9.70 | up to 85% | |
| *APR: Annual Percentage Rate. Generally, fees paid by Direct Financial. If appraisal required, member-paid fees may range from $350 to $600. For Home Equities in first Mortgage position, members may be required to pay Title Examination fees which may range from $250 to $500 and Title Insurance fees which may range from $1.65 to $2.75 per $1000 borrowed. CLTV is Combined Loan-to-Value ratio. | ||||
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