Home Equity Loans

As you've spent years paying down your mortgage, your equity has probably increased with your home's value. Now might be the perfect time to access that equity as affordable financing for your next big project.

Home Equity Loans and HELOCs can provide the funding you need

Choose a lump-sum loan or flexible line of credit

Competitive interest rates

Minimum loan/line amount of $10,000

Use funds for virtually any purpose

Home Equity Loans

For homeowners throughout Connecticut and Rhode Island, we offer two types of Home Equity Loans depending on whether the property is your primary home or an investment.

Loan proceeds are made available in a one-time disbursement
Pay back the loan in installments over a fixed period of time
Use the money as you see fit
Fixed rate loans available
Enjoy interest rates that are lower than your credit cards

Owner-Occupied Homes

Use your funds for anything – home improvements, consolidating and paying off debt, a dream vacation or whatever you have planned
Terms to fit your needs
No application fee or prepayment penalty
Minimum loan amount is $10,000 with a maximum allowable loan-to-value of 80%
Certain fees to be paid by borrower(¹)

Non-Owner-Occupied Homes

Use your funds for property repairs and renovations or put them toward education costs, medical bills or unplanned expenses
Terms to fit your needs
Minimum loan amount is $10,000, with a maximum allowable loan-to-value of 70%
Certain fees to be paid by borrower(¹)

Home Equity Line of Credit

With a Dime Home Equity Line of Credit, you access your equity whenever you need it, rather than as a lump-sum amount.

Borrow up to a specified amount based on your home equity
Draw on your line of credit with one of three convenient ways: check access, in-person at any branch, or with DimeOnLine
Withdraw whatever you need, whenever you need it
Enjoy competitive Dime Bank interest rates on loans of $10,000 and up
Use the money as you see fit
Certain fees to be paid by borrower(²)

Investment Property Line of Credit (IPLOC)

Line of credit is secured with a 1-4 family non-owner-occupied property
Use for property repairs and renovations or put them toward education costs, medical bills or unplanned expenses
Minimum loan amount is $10,000, with a maximum allowable loan-to-value of 70%
Certain fees to be paid by borrower(²)

Borrow local, borrow better.

When you get a Home Equity Loan or Line of Credit from us, it means something special. We service your loan for the entire term so you always work with local people who know you. And you'll get our friendly, personal service every time.

To determine the value of the property you are purchasing or refinancing, an appraisal will be required. An appraisal report is a written description and estimate of the value of the property. National standards govern not only the format for the appraisal; they also specify the appraiser's qualifications and credentials. In addition, most states now have licensing requirements for appraisers evaluating properties located within their states.

The appraiser will create a written report for us and you'll be given a copy at your loan closing. If you'd like to review it earlier, your Loan Originator would be happy to provide it to you.

Usually the appraiser will inspect both the interior and exterior of the home. However, in some cases, only an exterior inspection will be necessary based on your financial strength and the location of the home. Exterior-only inspections usually save time and money, but if you're purchasing a new home, your Loan Originator will contact you to determine if you'd be more comfortable with a full inspection.

After the appraiser inspects the property, they will compare the qualities of your home with other homes that have sold recently in the same neighborhood. These homes are called "comparables" and play a significant role in the appraisal process. Using industry guidelines, the appraiser will try to weigh the major components of these properties (i.e., design, square footage, number of rooms, lot size, age, etc.) to the components of your home to come up with an estimated value of your home. The appraiser adjusts the price of each comparable sale (up or down) depending on how it compares (better or worse) with your property.

As an additional check on the value of the property, the appraiser also estimates the replacement cost for the property. Replacement cost is determined by valuing an empty lot and estimating the cost to build a house of similar size and construction. Finally, the appraiser reduces this cost by an age factor to compensate for depreciation and deterioration.

If your home is for investment purposes, or is a multi-unit home, the appraiser will also consider the rental income that will be generated by the property to help determine the value.

Using these three different methods, an appraiser will frequently come up with slightly different values for the property. The appraiser uses judgment and experience to reconcile these differences and then assigns a final appraised value. The comparable sales approach is the most important valuation method in the appraisal because a property is worth only what a buyer is willing to pay and a seller is willing to accept.

It is not uncommon for the appraised value of a property to be exactly the same as the amount stated on your sales contract. This is not a coincidence, nor does it question the competence of the appraiser. Your purchase contract is the most valid sales transaction there is. It represents what a buyer is willing to offer for the property and what the seller is willing to accept. Only when the comparable sales differ greatly from your sales contract will the appraised value be very different.

The Federal Truth in Lending law requires that all financial institutions disclose the APR when they advertise a rate. The APR is designed to present the actual cost of obtaining financing, by requiring that some, but not all, closing fees are included in the APR calculation. These fees in addition to the interest rate determine the estimated cost of financing over the full term of the loan. Since most people do not keep the mortgage for the entire loan term, it may be misleading to spread the effect of some of these up front costs over the entire loan term.

Also, unfortunately, the APR doesn't include all the closing fees and lenders are allowed to interpret which fees they include. Fees for things like appraisals, title work, and document preparation are not included even though you'll probably have to pay them.

For adjustable rate mortgages, the APR can be even more confusing. Since no one knows exactly what market conditions will be in the future, assumptions must be made regarding future rate adjustments.

You can use the APR as a guideline to shop for loans but you should not depend solely on the APR in choosing the loan program that's best for you. Look at total fees, possible rate adjustments in the future if you're comparing adjustable rate mortgages, and consider the length of time that you plan on having the mortgage.

Don't forget that the APR is an effective interest rate - not the actual interest rate. Your monthly payments will be based on the actual interest rate, the amount you borrow, and the term of your loan.

Yes, applying for a mortgage loan before you find a home may be the best thing you could do! If you apply for your mortgage now, we'll issue an approval subject to you finding the perfect home. We'll issue a pre-qualification letter online instantly. You can use the pre-qualification letter to assure real estate brokers and sellers that you are a qualified buyer. Having a pre-qualification for a mortgage may give more weight to any offer to purchase that you make.

When you find the perfect home, you'll simply call your Loan Originator to complete your application. You'll have an opportunity to lock in our great rates and fees then and we'll complete the processing of your request.

Financial clarity starts here

How To Protect Yourself From Fraud Stay ahead of fraud

Identity Theft Protect what matters

Learning Hub Grow Your Know-How