May 8, 2008 Dollars & Sense
May Can spending money make you money? Even with recent declines in real estate values, home upgrades and critical maintenance projects can still be great investments. New Mexico independent appraiser Larry Griffis, a presenter at our Home Buyer and Seller seminars advises members to keep major upgrades like room additions in scale with the neighborhood for the surest return over time. Turning your home into a mansion on a street of modest homes doesn’t make investment sense. And appraised value doesn’t immediately go up to match the dollars spent on a project. But if upgrading a kitchen or bath makes the house more enjoyable and suitable for your family, it can be far more economical than moving.
Griffis also cautions that a major renovation just before selling a home won’t return your investment in most cases. But renovations can help boost appraised value when a home is functionally obsolete, with too few bathrooms or an outdated or unsafe heating system, for example.
As an SLFCU member, you have many economical ways to put home equity to work.
Modify your SmartARM 1st mortgage for only $249
If you have an owner occupied SLFCU SmartARM 1st mortgage, you can lower your rate, monthly payment and rate cap by modifying it for only $249.** You may also qualify to extend your loan to the original term and take cash out for your remodel, or for any other important purchase.
$400 Instant Rebate on closing costs
If you don’t have an SLFCU SmartARM or SmartValue 1st mortgage, now may be a good time. Buy a new home or refinance your existing mortgage with SLFCU before August 31, and you’ll get a $400 instant rebate on our already low closing costs.** SLFCU rates are based on a slow moving index, the Ten Year Treasury Security.
Tax advantage with home equity
A home equity loan or more flexible credit line (such as a first or second mortgage) can pay for improvements, but can also fund other important purchases like a safer, more efficient car, education expenses, or a jump start for your small business. Having an SLFCU Home Equity CreditLine ready for emergencies or opportunities can provide real peace of mind. The interest paid can save you tax dollars, even when the purchase is something other than home improvement. Ask a tax professional if you qualify.
Applying for an SLFCU mortgage, home equity loan or CreditLine only takes a few minutes. Apply online or call us at 505-293-0500 or 800-947-5328. Need personal advice? Our Loan Advisors work for your best interest, not for sales commissions. Call us today!
*Mortgage Modification Disclosure: For $249, we will modify your rate to the current rate for the same type of loan. If the new rate causes your payment to decrease, we will modify your payment, too. You can draw out your equity up to the original loan amount and you can extend the loan maturity date. Total term is limited to a maximum of 40 years. Modification offer applies to SmartARM 20 and 30-year mortgages only. Your monthly principal and interest payments on a 20-year SmartARM mortgage with a variable 4.7%APR as of 5/15/08 would be $65 for every $10,000 borrowed. Rate and payment may increase after loan origination. Subject to credit approval.
**$400 rebate applies to SmartARM/SmartValue owner occupied first mortgages. Rebate will appear as a Lender Credit at closing, reducing your closing fees by $400. Offer expires August 31, 2008. Your monthly principal and interest payments on a 30-year SmartARM mortgage with a variable 4.9% APR as of 5/15/08 would be $54 for every $10,000 borrowed. Rate and payment may increase after loan origination. Subject to credit approval.
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