The Mortgage Solution Quarterly Chevron Federal Credit Union by jolinmilioncherie

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									TheMortgage
SolutionQuarterly
                                                                                                                            Spring 2012


                                                                  Chevron Federal Credit Union
Home Equity Loan vs. Home Equity Line                                                            Ideas to Stretch
of Credit                                                                                        Your Kitchen
Chevron Federal Credit Union (CFCU) offers two ways for members to
borrow against the equity in their homes: a fixed-rate Home Equity Loan
                                                                                                 Remodeling Budget
and a revolving Home Equity Line of Credit (HELOC).                                              These tips can help you reduce your
                                                                                                 kitchen remodeling budget and still
Ifyouaretryingtodecidewhichoptionisbestforyou,considerthe                          end up with stylish results.
followingcomparison.
                                                                                                 Avoid Moving Plumbing, Wiring, and
CFCU 15-Year Fixed Home Equity Loan
                                                                                                 Electrical Outlets
Afixed-rate15-yearhomeequityloanmaybeagoodoptionifyouwantto
                                                                                                 Movingplumbing,wiring,andelectrical
consolidatedebtormakeanimmediatelargepurchase,suchasallnew
                                                                                                 outletscanbeextremelyexpensive,so
appliances.Paymentsarefixedforthetermoftheloan,andthefullamount
                                                                                                 trytokeepmajorfixtures,appliances,
oftheloanisdisbursedatonetime.
                                                                                                 andutilitiesclosetoexistingsources.
Key Advantage:
                                                                                                 Use Neutral Colors
•Fixedinterestratemeansyourmonthlypaymentwillnotchangeduring
                                                                                                 Fixtures,appliances,andlaminates
   thelifeoftheloan
                                                                                                 inneutralcolorsareoftenless
Key Disadvantage:                                                                                expensiveinitially,andtheywon’t
•Willneedtoreapplyifadditionalfundsareneededinthefuture                             lookdatedasquickly.
CFCU HELOC                                                                                       Keep the Existing Flooring
TheCFCUHELOCmaybeagoodoptionifyouwanttheflexibilitytoborrow                        Ifyourexistingflooringisingood
moneyonlywhenyouneedit,suchasforongoinghomerenovationsor                             condition,youmaywanttokeepit.
emergencyrepairs.                                                                               Anotheroptionistolookbeneathto
Similartoacreditcard,theHELOChasafixed                                                  seeifthereisahardwoodfloorthat
creditlimit,andinterestaccruesonlyonwhatis                                               couldbesandedandrefinished.
used.Onceyouhavepaidbackwhatyouhave                                                      Ifyouhavetopurchasenewflooring,
borrowed,yourfullcreditlimitisrestoredand                                                 vinylandlaminatearegenerallyless
availabletouseagain.                                                                         expensivethanwood,tile,orslate.
Youcanhaveeasyaccesstoyourcreditline                                                     Reface Existing Cabinets
throughchecks,aVisa® card,ortransfersto                                                    Replacingyourcabinetscompletely
yourCFCUaccountsthroughPCAccess
                                                                                                                     continued on page 2
OnlineBanking.
Key Advantage:                                                                                   CONTENTS
•Flexiblelineofcreditallowsyoutotapinto
   theequityofyourhomeforanyreason                                                        • Home Equity Loan vs. Home Equity
                                                                                                   Line of Credit
Key Disadvantage:
                                                                                                 • Ideas to Stretch Your Kitchen
•Yourrateandpaymentamountmayincreaseoverthelifeoftheloan
                                                                                                   Remodeling Budget
FormoreinformationonCFCU’shomeequitylendingoptions,pleasecontactusat510-627-5120
or888-334-5120orclickontheRealEstateLoanstabatchevronfcu.org.                         • Understanding the Three Basic Types
                                                                                                   of Home Lighting
        Great Rates.                                                                             • Mortgage Terms Defined


chevronfcu.org                              twitter.com/ChevronFCU                               facebook.com/ChevronFCU
Understanding the Three Basic Types of                                                                                  Ideas to Stretch
Home Lighting                                                                                                           Your Kitchen
There are three basic types of lighting that work together in your home:
ambient (general lighting), task lighting, and accent lighting.
                                                                                                                        Remodeling Budget
                                                                                                                        continued from page 1
Agoodhomelightingplancombinesallthreetypes
                                                                                                                         oftenmeansyouhavetoreplace
tolightanareaaccordingtofunctionandstyle.
                                                                                                                         theflooringandcountertopsaswell.
Ambient lighting providesanareawithoverall                                                                           Youcanavoidtheseexpensesby
illumination.Alsoknownasgenerallighting,it                                                                         refacingexistingcabinetry.
radiatesacomfortablelevelofbrightnesswithout
                                                                                                                         Use Standard Cabinetry
glareandallowsyoutoseeandwalkaboutsafely.
                                                                                                                         Ifyoudoreplaceyourcabinetry,
Insomespacessuchaslaundryrooms,the                                                                               trytousestandardcabinets
ambientlightingalsoservesastheprimarysource                                                                      insteadofcustomcabinets,or
oftasklighting.                                                                                                        useacombinationofthetwoifthey
Itcanbeaccomplishedwithchandeliers,ceilingor                                                                      arecompatible.
wall-mountedfixtures,recessedortracklights,and                                                                     Choose Fewer Cabinet Options
withlanternsmountedontheoutsideofthehome.Havingacentralsource                                               Optionssuchastiltfrontdoors,
ofambientlightinallroomsisfundamentaltoagoodlightingplan.                                                    spiceracks,andslideoutwire
Task lighting helpsyouperformspecifictasks,suchasreading,cooking,                                               basketscanreallyaddup.
doinghomework,playinggames,andbalancingyourcheckbook.                                                            Consideraddingtheminthefuture
Itcanbeprovidedbyrecessedandtracklighting,pendantlighting,and                                                 asyourfinancesallow.Justmake
undercabinetlighting,aswellasbyportableflooranddesklamps.                                                      certainthattheoptionyouwant
                                                                                                                         willbeavailableandcanbeadded
Tasklightingshouldbefreeofdistractingglareandshadowsandshouldbe                                              afterinstallation.
brightenoughtopreventeyestrain.
                                                                                                                         Reuse Appliances
Accent lighting addsdramatoaroombycreatingvisualinterest.Aspart                                               Ifatallpossible,reuseexisting
ofaninteriordesignscheme,itisusedtodrawtheeyetohouseplants,                                                appliancesandbuildyournew
paintings,sculptures,andotherprizedpossessions.                                                                    cabinetsaroundthem.Ifnew
Itcanalsobeusedtohighlightthetextureofabrickorstonewall,window                                            appliancesarenecessary,choose
treatments,oroutdoorlandscaping.                                                                                      ENERGYSTARmodelstolower
                                                                                                                         yourutilitybills.
Tobeeffective,accentlightingrequiresatleastthreetimesasmuchlight
                                                                                                                         Source:NationalAssociationforthe
onthefocalpointasthegenerallightingsurroundingit.
                                                                                                                         RemodelingIndustry(NARI)
Accentlightingisusuallyprovidedbyrecessedandtracklightingor
wall-mountedpicturelights.
Source:www.americanlightingassoc.comPhotoCredit:SeaGullLightingProducts,LLC



  Mortgage Terms Defined
  Assumability – Anassumablemortgage                      Closing Costs – Theseareexpenses                        Loan-to-Value (LTV) Percentage –
  canbetransferredfromthesellertothe                 overandabovethepriceoftheproperty                  Therelationshipbetweentheprincipal
  newbuyer.Generallyrequiresacredit                    thatareincurredbybuyersandsellers                   balanceofthemortgageandthe
  reviewofthenewborrower,andlenders                   whentransferringownershipofa                          appraisedvalue(orsalespriceifitis
  maychargeafeefortheassumption.Ifa                 property.Closingcostsnormallyinclude                  lower)oftheproperty.Forexample,a
  mortgagecontainsadue-on-saleclause,                   anoriginationfee,propertytaxes,                       $100,000homewithan$80,000
  itmaynotbeassumedbyanewbuyer.                     chargesfortitleinsuranceandescrow                    mortgagehasanLTVof80percent.
  Bridge Loan – Asecondtrustthatis                      costs,andappraisalfees.Closingcosts                  Private Mortgage Insurance (PMI) –
  collateralizedbytheborrower'spresent                  willvaryaccordingtothearea,country,                 Mortgageinsuranceprovidedbyaprivate
  homeallowingtheproceedstobeused                     andlender.                                               mortgageinsurancecompanytoprotect
  tocloseonanewhousebeforethe                        Escrow – Anitemofvalue,money,or                      lendersagainstlossifaborrower
  presenthomeissold.Alsoknownas                       documentsdepositedwithathirdpartyto                 defaults.Mostlendersgenerallyrequire
  "swingloan."                                             bedelivereduponthefulfillmentofa                    PMIforaloanwithaloan-to-value(LTV)
  Buydown – Whentheseller,builder,or                    condition.Forexample,thedepositof                    percentageinexcessof80percent.
  buyerpaysanamountofmoneyupfront                    fundsordocumentsintoanescrow
  tothelendertoreducemonthlypayments                  accounttobedisbursedupontheclosing
  duringthefirstfewyearsofamortgage.                 ofasaleofrealestate.
  Buydownscanoccurinbothfixed-and
  adjustable-ratemortgages.
                                                                                                                              Federally insured by NCUA.

Chevron Federal Credit Union • P.O. Box 2069, Oakland, CA 94604 • Tel 800-232-8101 • email: cfcumail@chevronfcu.org

								
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