If you grew up in the Chicagoland area, then you may be familiar with Mr. Fix It, Lou Manfredini.
Lou hosts HouseSmarts Radio on WGN Radio 720, a weekly call-in program where he offers home improvement advice and DIY techniques.
Sue Welsh, Senior Vice President of Residential Lending and Organizational Sales at DuPage Credit Union, recently joined Lou on HouseSmarts to talk about one of the most important assets you have as a homeowner: your home’s equity!
Listen to the 9-minute conversation here.
The takeaways:
Is now a good time to do a home improvement or home remodeling project?
“[Now is] a great time to tap into that equity,” said Welsh. Rates are still at historic lows and because of the lower inventory, many home values have increased considerably.
DuPage Credit Union offers four types of home equity loans:
- HELOC: A revolving line with a variable rate, similar to a credit card.
- Conventional Equity: One low fixed rate for up to 10 years.1skip to disclosure
- Flex Equity: One low fixed rate for five years. Thereafter, your rate is variable.2skip to disclosure
- Future Value Home Equity Loan: Borrow on the future value of your home after renovations.skip to disclosure
How does a Future Value Home Equity Loan work?
If you’re thinking about making home renovations but have little equity in your home, our Future Value Home Equity Loan is perfect for you. We use an appraiser to determine what the value of your home will be after renovations so that you’re able to borrow the money that you need to complete the work now.
“If you’re putting in a new kitchen and [the appraisers] say, ‘hey with this new kitchen, your value is going to go up $45,000’ then we will lend up to 90%*skip to disclosure of that […] appraised [future] value,” said Welsh. “So it’s like a mini construction loan.”
Is now a good time to do a cash out refinance?
With rates at historic lows and home values up, now is an excellent time to do a cash out refinance for your home remodeling or home renovation project.
A cash-out refinance replaces your existing mortgage with a new one for a larger amount. The difference goes to you in cash to spend on anything you choose. In fact, since rates are so low, many members use this extra cash to make home improvements in lieu of a home equity loan.
Why choose DuPage Credit Union for a home loan?
DuPage Credit Union is a full-service financial institution. In other words, we offer a full suite of financial products, like checking and savings accounts, vehicle loans, personal loans, credit cards, and mortgage loans.
Unlike banks which have shareholders to appease and a well-compensated Board of Directors, DuPage Credit Union is a not-for-profit owned by our members and supported by a volunteer board.
“Being a member-owned not-for-profit, the profits that we generate always get sent back to our members, and that comes in the form of reduced fees or lower interest rates whether it be on a credit card, a car loan, a mortgage loan, or a home equity [loan],” said Welsh.
We’ve got a fan in Lou Manfredini
“I’ve always been a big fan of credit unions […] you guys are cutting edge, and the whole fact that you put the profits back to your members—it’s really become a no-brainer for people to become a member of DuPage Credit Union,” said Manfredini.
We couldn’t have said it better. To learn more about how to become a member, visit dupagecu.com/join or give us a call at 1-800-323-2611.
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Homeowners insurance required.
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Single-Family dwellings only in Illinois.
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We lend in all of Illinois on primary and secondary residences.
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Consult a tax advisor regarding deductibility of interest.
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Must have a Credit Union membership established and be in good standing. Rate, points, and Annual Percentage Rate (‘APR’) may be adjusted based on several factors including, but not limited to, state of property location, loan amount, documentation type, loan type, occupancy type, property type, loan-to-value and your credit score. Your final rate and points may be higher or lower than those quoted based on information relating to these factors, which may be determined after you apply. Maximum loan-to-value varies based on multiple factors, including but not limited to, loan type, property type and occupancy type.
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Other restrictions may apply.
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Conventional Equity APR = Annual Percentage Rate. Rate subject to change without notice. Payment Example: 6.500% APR for a fixed rate with a term of 60 months monthly principal and interest payments of $978.31, based on a loan amount of $50,000 and a loan-to-value of 80%. 7.000% APR for a fixed rate with a term of 84 months monthly principal and interest payments of $754.63, based on a loan amount of $50,000 and a loan-to-value of 80%. 7.250% APR for a fixed rate with a term of 120 months monthly principal and interest payments of $587.01, based on a loan amount of $50,000 and a loan-to-value of 80%. Minimum loan amount $10,000, Maximum loan amount $1,000,000. Payment example does not include homeowner insurance, property taxes, private mortgage insurance, or homeowner association dues. Actual payments may vary based on amount, term, APR, taxes and insurance, and other factors. Homeowner insurance required. All loan terms and conditions are subject to Credit Union qualifications and approval. Some restrictions may apply. Must have a Credit Union membership established and be in good standing.
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Flex Equity APR = Annual Percentage Rate. Rate subject to change without notice. 20-year 5/1 ARM: Adjustable Rate Payment Example based on a loan amount of $50,000 and a loan-to-value of 80%: 5/1 adjustable rate with a 7.261% APR, the first 60 payments are $402.80, with 12 payments at $467.23 if the rate were to adjust to 9.50%, 12 payments at $534.80 if the rate were to adjust to 11.50%, 12 payments at $605.74 if the rate were to adjust to 13.50%. This payment example states the highest rate and payment amount for the life of the example loan based on current maximum rate adjustment caps. Payment examples do not include homeowner insurance, property taxes, private mortgage insurance, or homeowner association dues. Payment examples were calculated using the initial payment period, and then each payment thereafter was calculated using the maximum rate allowed for each rate change period until maximum rate achieved. Rate and payment will adjust annually based on the index and loan terms through the life of the loan for the continued repayment period. Example for informational purposes only. Actual payments may be higher. Homeowner insurance required. Minimum loan amount $10,000; maximum $1,000,000. All loan terms and conditions are subject to Credit Union qualifications and approval. Some restrictions may apply. Must have a Credit Union membership established and be in good standing.
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Qualified Members can borrow up to 90% of the future market value of their home, less the first mortgage owed.
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