Tag: homeowner

Reducing Seasonal Energy Costs

Brrrr! For many of us, winter means high energy bills, but sitting in the dark or turning off the heat are not your only options. Here are some ways to improve your home’s energy efficiency and save money during the cold months:

Sealing

Cold air can get in around the sides of windows, doors, and vents. If you hold a piece of tissue near the inside frames on a windy day and it flutters, you should seal the window. Visit your local hardware store for weather-stripping. Talk to an employee or do research online about the right product.

Insulation

Insulating your attic can increase your home’s energy efficiency significantly, and it’s usually fairly easy. Consult with a professional or do some research at the Zip-Code Insulation Program, created by the Department of Energy.

Heating and Cooling Systems

Temperature systems account for about 56% of the energy in a typical U.S. home, so updating can save a lot. You can retrofit or replace your furnace or boiler, depending how long your system has to live and how much each option costs. New heating systems can achieve an efficiency of up to 97%.

Appliances and Electronics

Appliances account for 20% of energy use in a typical U.S. home. Old ones can be energy hogs. To find energy-efficient products, look for the Energy Star label.

Water Heaters

Insulating or increasing the insulation on your water heater tank and pipes can decrease heat loss and lower your energy bills for a fraction of the price of replacing your water heater. However, if your water heater is nearing the end of its life, it is probably a good idea to replace it.

Solar Panels

Solar panels typically have high upfront costs, though they can provide clean, free energy for years to come. Use the Solar Calculator to estimate the cost of installing panels.

Financing

Many cities and states have programs to help pay for green renovations. Contact Wauna Credit Union to find a low-interest loan. You may also qualify for tax benefits; visit the IRS’s website at www.irs.gov.

Energy usage and efficiency figures come from the Department of Energy. For more facts and tips, visit www.energysavers.gov.

Saying “I Do” to Homeownership: How to Prepare for This Big Commitment

Buying a home is a major commitment. It’s a bit like, well, getting married. You’ve got to be ready and you have to find the right “one.” And, like a marriage, homeownership is a dynamic experience that requires a tremendous amount of care and attention. If you are ready to shift from renter to buyer, you’ve got some legwork to do.

Here’s how to prepare:

Credit matters
Quite simply, the past can either haunt or help you. If your debt-to-income ratio is too high, financial institutions will likely be wary of extending you another loan. If you have had problems repaying past obligations, a lender will have trouble trusting that you will pay your mortgage on time.

You can increase your FICO score (a credit scoring model that helps lenders assess risk) by reducing debt, making timely payments, not shopping aggressively for credit, having a variety of credit instruments, and keeping at least one credit card for a long period of time. Make significant improvements in as few as six months.

Understand what you can afford
Most lenders require that total housing costs not exceed 28% of gross monthly income, and total debt payments per month (including the mortgage) not surpass 36%. In real terms, this means that if you owe no consumer debt and have a household income of $75,000, then $1,750 in housing costs is within your range.

Accumulate cash
If you don’t have at least some cash in your coffer, start a savings plan now. How much you will need depends on many factors, including the home price and how much you will put as a down payment. Closing costs, points, moving expenses, and a post-purchase reserve fund of two to three months worth of housing payments can add up to many thousands of dollars.

Once you own your home, you may eventually want a bigger or better living space. Rather than purchase a new residence, first consider remodeling. You can add rooms and customize your home to meet your needs and desires without having to move. Yet while remodeling can be wise, it can also be stressful and expensive. Be careful when hiring someone to do the work for you. A contractor you hire should:

  • Have a licence
  • Carry general liability insurance
  • Carry workers’ compensation insurance
  • Provide you with a written waiver at the end of the job
  • Guarantee work for at least one year from date of completion
  • Provide you with references
  • Be financially sound, so won’t declare bankruptcy in the middle of your project
  • Can provide proof that he or she has completed similar projects
  • Ensure that the price includes removal of all job debris and full clean up

So how are you going to pay for those fabulous improvements? There are three basic options: cash, refinancing, and using home equity.

  • Cash: If the job is small or short term, paying with cash is often the best method. A nice advantage of using savings is that you won’t have to repay a loan for the work that is done. When using cash, be sure to pay in agreed-upon increments.
  • Refinancing: Swapping a higher interest mortgage for a lower interest one can free up money for the project. You can refinance your existing mortgage and take all or part of your current equity in cash. Keep in mind though, that it will only be cost effective if you plan on remaining in the home long enough to recoup the closing costs and other fees associated with refinancing.
  • Home equity: Using home equity can be a great way to make major improvements – and get a tax benefit of interest deduction at the same time. To tap into your home’s equity, you can get a conventional second mortgage, a home equity loan, or a home equity line of credit. Second mortgages and home equity loans are best for large, long-term projects that require lump sum payments. Home equity lines are good for short-term projects or those requiring incremental payments.

Finally, remember that at home is not only where the heart is—it is also where the money is. You can get the most from your relationship with real estate by giving it the time and attention it requires, just like a marriage.

Visit our Real Estate Loans and Mortgage page to learn more about how you can get started today.

Provided by Balance.

HELOCS Are Cool, Just Ask Barbara Norman!

Barbara Norman-webWauna Credit Union is offering special terms for HELOCs (Home Equity Line Of Credit) until July 31st! Now is the time to put your home’s equity to work for those fun home improvement projects, or nearly any need one might have. One reason so many people prefer HELOCs to Home Equity Loans is that you use the money you need when you need it. It is rotating and versatile!

Our current promotion offers a 1.99% interest rate for the first 6 months! Plus, since we are a Credit Union, there are NO Loan Origination Fees like many other financial institutions have. And, as an added bonus, we will give the holder of every approved HELOC a DIY project starter kit including a tape measure, torpedo level, & a carpenter’s pencil!

To learn more, we cornered Barbara Norman, an expert from our Wauna CU Mortgage Department, here’s what she had to say about HELOCs.

First, we asked Barbara to name THREE great things about a HELOCs, and she was quick to respond!

  1. Access to emergency funds instantly!
  2. Pay interest only on funds used!
  3. No costs (except appraisal if needed)!

Next, we asked her what a homeowner would need to qualify for a HELOC?

  • Income, equity in the home, & pretty good credit.
  • A month of Paystubs.
  • 2 years W-2s and Federal Tax Returns.
  • Home Owner’s insurance.
  • Current Mortgage Statement on 1st Mortgage, if any, and possible other docs depending on circumstances.

What can homeowners spend the money on? Are there rules or limitations?

Barbara: They can spend it on buying a car, pay off debts, home improvements, cash for vacation, buying additional property, and much more!

What is the benefit of getting a HELOC via Wauna CU?

Barbara: We pay for the title policy, flood certification, recording fees, and tax service, if any.  The member would pay only for appraisal, if it is required.

We thought we’d stump Barbara when we asked this question: What is the ‘Coolest” thing about HELOCs? Because of course, how could a HELOC be cool? But, Barbara didn’t even blink when she responded, why you ask? Because as Barbara has proven HELOCs ARE COOL!

Barbara: I think the coolest thing about a HELOC is having the funds for emergencies; whether your water main breaks, roof leaks, or you have a medical emergency, it takes the worry out of the equation.

Thanks Barbara!

Now, we all know a little more about Home Equity Lines of Credit, and if you would like one, please apply online or stop in any branch to talk to your local Member Service Officer.

Learn More about our HELOC Promotion: https://waunafcu.org/loans/current-loan-promotion.shtml