22 Jul

Benefits of an Interest-Only HELOC

Interest-only heloc

A home equity line of credit can be a great tool for homeowners. And an Interest-Only HELOC allows for even more flexibility with your money and lower monthly payments.

This loan product gives you an allotted amount you can spend with a set amount of time to spend it. Essentially borrowing money against the equity built up in your home, with the interest being the minimum monthly payment.

In order to make the most of an Interest-Only HELOC, it’s important that homeowners understand what it is and how to utilize it to its full potential.

Access to More Cash

Home equity line of credit is comprised of two phases, a draw period and a repayment period. They’re pretty self-explanatory.

  • During the draw period, you’re able to access money from your line of credit to make monthly payments. Those payments go toward the interest you owe. In the long run, this adds flexibility.
  • Then, during the repayment period, you pay back the remaining interest and principal.

When you only have to make payments toward the interest, not the principal, the result is extremely low monthly payments.

Low Interest Rates

Interest-Only HELOCs are one of the most affordable and flexible ways to borrow money. The lower your HELOC interest rate is, the lower your monthly payments, so make sure your bank offers competitive rates. An Interest-Only HELOC has the monthly payment as the interest accrued, so that means even lower payments!

For example, RMLEFCU offers interest only HELOCs with rates starting as low as prime +1% APR.

Unlike a loan, a home equity line of credit is readily available whenever you need it. You apply for the line once, then draw on it as you need it. Remember, as the principal is repaid, funds immediately become available for use again.

Flexible Payments

In an Interest-Only HELOC, you only pay the monthly interest rate during the draw period, so you can manage your budget around those expectations.

Additionally, you can choose to pay back just the interest cost or make additional payments toward the principal. The freedom to choose your pay back amount can alter based on your available budget and income.

How to Know if an Interest-Only HELOC is Right for You

Most people choose an Interest-Only HELOC when attempting to conserve monthly income in the short run. However, there are other times when this option is beneficial:

  1. When you’re juggling fluctuating income and need flexible payment options
  2. If you plan on selling your home after renovations
  3. If you need to consolidate debt
  4. When you need a large sum of cash for an investment
  5. If you’re trying to minimize monthly payments during a flip
  6. If you’re making a down payment on a second home before selling your first

Call us today to discuss our low HELOC rates and put your home’s equity to great use! (303) 458-6660

24 Jun

Online Banking During COVID-19

Online Banking

Online banking has become more popular, as contact between employees and customers has been restricted due to COVID-19. It helps you to monitor your bank account using a computer or mobile device over the internet. You don’t have to visit a branch at your financial institution and, when it’s most convenient for you, you can do all of your banking activities, even during non-regular banking hours.

Banking Activities You Can Do Online

RMLEFCU offers our members a free, safe, and easy-to-use digital service. With internet access, you can handle a variety of banking activities at any time, anywhere.

Digital Banking

You can open checking and savings accounts easily without the hassle of printing or signing anything physically. In the past, during business hours, you had to visit a personal banker. With the capability to sign electronically, the whole process can now take less than 10 minutes.

Bill Pay

Rather than writing checks to pay bills each month, you can easily use the online bill payment system to pay one-time or recurring bills. Payments are credited easier and you will get a confirmation email. This electronic method saves you both time and effort.

Deposit Checks

With mobile check deposit, the fastest and easiest option is to use DeposZip. Snap a photo of the check through the mobile app and submit it for payment. There is no need to send the check by mail or go into the bank. It is free, secure, and easy to use. Save yourself some time and use this convenient mobile banking feature!

eStatements

Need to see if you cleared that check or how much your employer paid you? Transactions can be viewed easily, past statements can be downloaded, and specific transactions searched. eStatements reduce the chances of fraud and identity theft because the paper trail is eliminated.

Online Banking Security

Online banking is in many ways more efficient than conventional banking. The fact that you have your paycheck deposited directly into your bank account eliminates the risk of someone stealing your check from the mail. Plus, no one can copy your account information from checks you send to billers because bank computers securely send that information back and forth without storing it. To provide you an extra sense of security, RMLEFCU also offers fraud alerts for your accounts.

It’s relatively easy to keep safe while banking online. Keep up to date your computer, and other devices with current operating systems, antivirus software, and firewalls. Use complex passwords, and never write them down. Finally, never respond to emails, phone calls, or text messages that ask you to provide important information about your account. If you have any questions about mobile banking with RMLEFCU, call us at 303-458-6660!

12 Jun

What is Debt Protection and Why do You Need It?  

Sudden, life-altering events can cause financial strain, like making loan payments difficult. Preparation for these unexpected incidents is always good. RMLEFCU provides debt protection insurance so you can be confident your annual loan payments will be canceled in the event of death, injury, or accidental unemployment.

Our debt protection program offers you six different options — that gives you the flexibility to choose the right Debt Protection package for you. Each option has specific requirements for eligibility and different benefits.

What Does It Cover?

Debt protection is a contractual agreement between RMLEFCU and your borrowers to cancel or suspend all or part of the obligation to repay a loan due to specific events such as death, disability, and involuntary unemployment.

Debt insurance covers up to 6 months of payments if you are mistakenly unemployed, up to 12 months if you are sick and disabled, and are unable to work, and the debt balance is entirely paid out in the event of life loss.

A nice thing about debt insurance is that it helps keep your current credit score because the program requires you to keep up to date with loan payments. In times of financial crisis, the policy will continue to pay your loans, so your credit score will not be affected.

Reasons to Get Protected

Debt protection is easy to get at a reasonable price. Costs for coverage are reflected in your monthly payment. Applying for debt insurance when applying for a loan is easy, and a good idea in general. The fee is usually included with a monthly loan payment, and immediate coverage begins.

It also helps to bring down your financial risk. Debt protection provides financial security for you and your family. It will protect your credit rating during times of uncertainty and stress and gives you peace of mind. You don’t have to worry about making any or all loan payments should there be an unexpected incident in life.

For complete details — including the monthly cost for each option — talk with one of our loan representatives today or call us at 303-458-6660. We can discuss this program with you, explain how it is different from traditional credit insurance.