CEO CORNER – Don’t Fear – Options are Here
7/1/2022

If you’ve been watching the news lately, you likely know that interest rates are on the rise. The Federal Reserve has been raising interest rates at a faster clip than many of us expected, and that can put some members in a difficult spot.
 
That is especially true for those who are looking to purchase a home or were planning a cash out refinance to do those much needed home improvements.  Meanwhile, housing prices have skyrocketed, leaving many prospective home buyers stuck in their home or concerned about high rates when looking to purchase their first home.
 
The good news is that Christian Financial can help our members make lemonade out of these higher interest rate “lemons.” There are many options available to our members to purchase a home or take equity out of their current home.
 
ARMs are Back
For first time homebuyers, you may have noticed a resurgence in the popularity of Adjustable-Rate Mortgages, or ARMs. They are a great option for members looking to save on monthly payments. With an ARM loan, the rate is initially set for a fixed period, such as five or seven years and then fluctuates annually throughout the remaining life of the loan. However, they are typically offered at a lower initial interest rate than a conventional fixed rate 30 year loan.
 
For example, a 7/1 ARM has a fixed interest rate for the first seven years. After that time, the rate may change once a year based on current market interest rates at that time.  Our partner, Mortgage Center, offers 2/2/5, which means your initial change after the seven years will never be greater than , 2%higher, and each subsequent change is capped at  2% and the lifetime cap rate increase is 5%. An ARM loan could be a great option for someone who plans on moving or refinancing their mortgage before the end of the introductory fixed-rate period. It’s also a great option for someone who wants the benefit of a lower rate versus a fixed-rate mortgage. 
 
 
Harnessing Your Equity
For current homeowners, it’s likely that if you refinanced or purchased your home in the last two or three years, you have a very low interest rate on your current mortgage. The great news for homeowners is that home values have also significantly increased, meaning you probably have a tremendous amount of equity in your home. However, most members don’t want to lose their low rate by refinancing their first mortgage.
 
Now, you can put this equity to work for you in the form of a Home Equity loan for all sorts of large expenses, including home improvement projects like a new kitchen, bathroom, or home office, refinancing credit card debt, education expenses – the possibilities are truly endless.
 
Christian Financial offers a Home Equity Line of Credit, or HELOC that allows you to draw on your home’s equity for 10 years. For loans up to $75,000 there are no closing costs at this time. Use your line over and over as you pay down your balance. Interest rates on HELOCs are variable, so they can fluctuate every quarter as the market changes but your payment is calculated based on the amount that you have advanced on your line.
 
With our new Digital Banking suite, members can easily draw on their HELOC by making a transfer into an account at Christian Financial, and funds are available instantly.  Similarly, you can back on this balance and then draw on it again when you need it.
 
Another option for members is a closed end Home Equity from our partner, Mortgage Center. This option allows members to draw on their equity with one lump sum at a fixed rate. Members will appreciate the dependability of a fixed rate and payment when considering their options.
 
Get Gas Money and a Lower Rate
In addition to rising interest rates, there’s been a little more pain at the pump than usual. If you’re paying more for gas, you may be looking for money-saving opportunities elsewhere.
 
Good news – when you refinance your auto loan with Christian Financial, or buyout your lease, you can save money on your monthly payment and receive a $100 gift card to use at the pump. It’s a win-win for you by saving money on your monthly payment and getting something a little extra to use on fuel.
 
More information on all our options are available on our website, and you can apply online quickly and easily in five minutes or less through our online loan application. Our online loan application is available on our website, in Online Banking, or in our mobile app.
 
Despite the current economic uncertainty, you can count on Christian Financial to offer a variety of options to get you where you want to go, with easy-to-use, valuable financial tools. We’ll be here every step of the way.
 
For You & Because of You –

 

Patty Campbell
President & Chief Executive Officer
 
 
 
 
Contact Us:

35100 Van Dyke Ave
Sterling Heights, MI 48312

586.772.6330

CFCU Routing & Transit Number: 272484289
 
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Christian Financial Credit Union was founded in 1950 and has grown to serve anyone who lives, works,
worships or goes to school in Macomb, Wayne, Oakland and St. Clair Counties. 
 
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Federally insured by the NCUA
Equal Housing Opportunity Lender