Once the date is set for our reopening, we will provide you with more information and guidance. Until then, our drive-thru remains open. Please continue to contact us electronically as much as possible (emails, Internet Branching messages, online loan and membership applications, etc.). We look forward to seeing you in our lobby again!
If you’re looking to fund a home improvement project, or the economic devastation of COVID-19 has left you in need of cash, consider tapping into your home’s equity with a home equity line of credit, or a HELOC.
What is a HELOC?
A HELOC is a revolving credit line allowing homeowners to borrow money against the equity of their home. Borrowers can withdraw money as needed during a set amount of time known as the “draw period,” which generally lasts 10 years. Some lenders place restrictions on HELOCs and require borrowers to withdraw a minimum amount of money each time they make a withdrawal, regardless of need. Other restrictions include the requirements to keep a fixed amount of money outstanding or to withdraw a specific sum when the HELOC is first established; however, borrowers are typically free to spend the money however they please.
How do I repay my HELOC?
Repayment of HELOCs varies, but is generally flexible.
Many lenders collect interest-only payments during the draw period, with principal payments being strictly optional. Others require ongoing monthly payment toward both principal and interest.
When the draw period ends, some lenders require borrowers to pay back the entire loan “balloon” amount. Others allow borrowers to pay back the loan in monthly installments over a new time period, known as the “repayment period.” Repayment periods are generous, lasting as long as 20 years.
What are the disadvantages of a HELOC?
A HELOC places your home at risk of foreclosure if not repaid. Before opening a HELOC, it’s a good idea to run the numbers to ensure you can easily meet the payments.
Also, many lenders require the full payment of the HELOC after the draw period is over. This can prove to be challenging for many borrowers.
Finally, if you don’t plan to stay in your home for long, a HELOC may not be the right choice for you. When you sell your home, you’ll need to pay the full balance of the HELOC.
A HELOC can be a great option now
HELOCs have variable interest rates, which means the interest on the loan fluctuates along with the general interest rate, sometimes dramatically.
The economic fallout of COVID-19 has generated historically low interest rates. The average APR for fixed 30-year mortgages has hovered at the low 3% for months now, and experts predict it will continue falling. The low rates make it an excellent time to take out a HELOC with manageable payback terms.
The economic uncertainty the pandemic has generated also makes it a prime time to have extra cash available for any need that may arise.
The coronavirus pandemic has been raging on American shores for several months, but scammers are still finding new ways to exploit the panic, fear and uncertainty surrounding the virus to con people out of their money. The latest in a string of coronavirus scams involves a simple text message with criminal intent.
Here’s all you need to know about the coronavirus text scam.
The scam starts out with the victim receiving an alarming text message informing them that someone they’ve recently been in contact with is infected with COVID-19. They are then told to self-quarantine and to get tested for the virus.
Here is the actual text from one of these scams:
“Someone who came in contact with you tested positive or has shown symptoms for COVID-19 & recommends you self-isolate/get tested.”
The text also includes a link for the recipient to click for more information. Many unsuspecting people who read these messages innocently click on the link and play right into the scammers’ hands. The link provides the scammer with access to the victim’s device. The scammer can then scrape the victim’s personal information off the phone and use it to empty the victim’s accounts, open lines of credit in their name or even steal their identity.
If you receive a text message like the one described above, do not respond or click on any embedded links. Report the text to local law enforcement agencies, place the number associated with the message on your phone’s “block number” list and delete the message. You can also warn your friends about the circulating scam to keep them from falling victim.
Summer is here and our gardens are in bloom! Try this recipe for Zucchini Quiche, and enjoy a low cost, easy dish that makes everyone happy!
1 onion, chopped
1 cup baking mix (such as Bisquick)
1/2 cup melted butter
1/2 cup Parmesan cheese
1 teaspoon parsley
1/2 teaspoon salt
1/4 teaspoon pepper
1/2 teaspoon basil
3 to 3 1/2 cups grated zucchini (or try squash)
1/2 cup grated mozzarella cheese
Bills are a lot like bad weather. They’re going to come anyway, so you might as well not try to fix them, right? For some bills, that’s the case. For others, though, you can make a big difference in your monthly budget with a little legwork.
One of the bills you can change is your car payment. Refinancing your vehicle loanopens in a new window can lead to a lower monthly payment, a shorter term, or both! It depends on a wide range of factors, including the value of your vehicle, how much you owe on your current loan, and your credit standing.
If any of these factors have changed since you bought your car, you owe it to yourself to check out your refinancing options. Let’s look at some common life changes and when they might be cause to look at refinancing. Read on to learn about three scenarios where refinancing makes sense for your car or truck:
Your credit improves
One of the biggest factors in determining your auto loan status is your credit score. When your lender is building a loan package, a credit report is pulled as a central part of that process. That number helps define your interest rate, whether or not you’ll have to pay a premium for insurance, and what other fees your lender might charge.
It’s worth keeping a copy of the credit report your lender pulled. That can let you see if your credit score has improved. It can take as little as nine months of steady repayment to boost your credit score, and that could result in a cheaper loan if you refinance.
If you didn’t have much experience with credit when you purchased your vehicle, refinancing can do you a world of good. Interest rates as high as 18% are common for borrowers who have little to no
credit history. Having even a few months of solid payments on your side can cut that rate in half or more.
You didn’t shop around before you borrowed
Many people feel railroaded throughout the car-buying process. They pick a car they like, then they are told what the price is, what the monthly payment is and everything else. It may seem like the choice of lenders for your car loan is predetermined.
Dealers tend to have a smaller range of lenders with whom they work exclusively. Those lenders know they have limited exposure to competition, so they can charge slightly higher fees and interest rates. By doing your own comparison shopping, you can save quite a bit on both the loan and any ancillary insurances or warranties you may have purchased. Dealer rates tend to be 1 to 1.5% higher than those offered at smaller lenders, like credit unions.
If you’ve never shopped around for a car loan, it’s definitely worth doing. By getting multiple offers, you can ensure you’re getting the best price available for your loan. Try to do your shopping inside a 15-day period. Otherwise, the multiple checks on your credit could negatively impact your credit score.
You need to change your monthly payment
You may be in a much better financial situation now than when you bought your car. You may have a better job or more security. You may have paid off credit card or other debt. All of these things free up how much you can pay per month.
Most people don’t go into the refinancing process looking to increase their monthly payment, but you can save yourself money in the long term by committing to a faster repayment plan. If you can afford to pay more per month now, you can pay off the balance on your car faster. Shorter term loans usually also have lower interest rates, since the lender assumes less risk in making the loan. Once the car is paid off, you’ll have all that money to devote to other saving or spending priorities.
On the other hand, if money is tight, it might be a good idea to refinance into a longer term. While you might end up paying more in interest, you can reduce your monthly payment and save the money you need right now.
If saving money sounds good to you, we’ve got the perfect refinance programopens in a new window going on now through September 30. 2020. Give us a chance to lower your monthly payment and reduce your interest rate by up to 2%APR* by refinancing with Acclaim FCUopens in a new window. And the best part? No payment for up to 90 days!**
*APR – Annual Percentage Rate. All loans and accounts are subject to approval. Programs, rates, terms and conditions are subject to change at any time without notice. Offer valid through 9/30/2020.
**First payment will be due up to 90 days from closing of the loan. Finance charges begin accruing as of the loan disbursement date.
Address: P.O. Box 29527
Greensboro, NC 27429
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