Are we alone in the universe? Is Bigfoot real? How is your credit score determined? These are the great mysteries of our time. And while we can’t help you with the first two, we can shed some light on your credit score. For better or worse, your score plays an important role in the mortgage process. The national average is 704, and the higher your score, the lower your interest rate. While a lower score can keep you from getting approved all together.

Featuring Guest Patty Corkery, President & CEO of Michigan Credit Union League

Most people think banks and credit unions are basically the same but they’re not. One is built to serve shareholders. The other is built to serve you.

What is DTI ratio?

Before you can improve your DTI ratio, it helps to know what a DTI ratio is. DTI stands for debt-to-income. It’s a comparison of your monthly debt payments versus your monthly income. Your calculated DTI ratio is used to help lenders get an idea of how well you manage monthly expenses, which helps them determine if you’ll be able to repay a loan.

Add to your LMCU membership with ease.

So, you want to buy a home.

That’s great news! As you prepare to take that first step, you may be wondering just how many steps there really are before you can open the door to your dream home. Well, wonder no more: LMCU’s mortgage experts are here to break down the homebuying process into easy, actionable steps — so you can feel overjoyed about buying a home, instead of overwhelmed.

Buying a home is one of life’s biggest, most exciting decisions. And because it requires a lot of careful consideration and planning, many would-be homeowners may hesitate to take the first step. But how many of these doubts about the housing market and mortgage process are based in reality — and how many are just myths?

Got a big home remodel planned? Looking to add a new room for a new family member? Or maybe you just want to transform your familiar house into a happening happy place? Whatever your goals are, a home equity line of credit (HELOC) can help you get more done. 

By borrowing against the equity you’ve already built in your home, a HELOC gives you access to reliable funds at a low interest rate — much lower than a credit card! And with interest-only payment periods of up to 10 years, it’s easy to pay off your HELOC at your own pace.

So what could you do with a HELOC? Here are some of the most common home improvements our members use their HELOC funds for. 

1.    Remodeling your kitchen or bathroom.
From new granite countertops and stainless-steel appliances to rain showers and fresh tile, kitchen and bathroom renovations are by far the most popular. Not only can these remodels modernize your home and make it feel more, well, homey, but they also add incredible value to your home, should you ever choose to sell.

2.    Adding living space.
Anticipating an addition to the family? Or maybe you just want to build a personal sanctuary? Whether it’s a finished basement, an attic loft, or a new bedroom, increasing the square footage of your home adds function, personality, and value.  

3.    Enhancing curb appeal.
It’s not all about the interior: landscaping, new siding, fresh paint, or a new front door can turn heads all around the neighborhood — making your home a destination for dinner parties, lawn games, and barbeques.

4.    Improving energy efficiency. 
The best renovations pay for themselves. Upgrading to energy-efficient features like new windows, insulation, or solar panels can lower your utility bills and save you a ton of money in the long run.

5.    Building outdoor living spaces. 
A new deck, outdoor kitchen, or even a pool can add new dimensions to your home — and help you make the most of those warm weather months!  

Feeling inspired? Crunch the numbers and find out how much could you borrow with a HELOC using our handy calculator!

Presented by Lake Michigan Credit Union’s Wallet Wisdom Podcast 
With Host Brett Christiansen and Guest Savannah, Girmscheid, LMCU Financial Wellness Manager 

In the latest episode of Wallet Wisdom, host Brett sits down with LMCU’s VP of Accounting, Tommy Minchew, and SVP of Finance, Mike Steele, to demystify one of the most talked-about financial topics with this latest decision to maintain interest rates by the Federal Reserve and how it impacts your wallet*. Whether you’re a saver, borrower, or somewhere in between, this episode is packed with practical advice to help you navigate today’s economic landscape.

Budgeting can be tough, especially if debt has already started piling up — or the amount you think you’re spending doesn’t match up with your credit card statement. That’s why it can be helpful to start with a flexible framework that makes it easy to visualize your spending and saving habits, while still allowing you to have some fun with your money.