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Learn what's happening at LMCU.
Santa Squad is coming to town December 1.
LMCU’s annual Santa Squad initiative focuses on giving back to our communities, with special events planned throughout the month of December. Starting December 1, you can keep up with our Santa Squad festivities by following LMCU on Facebook and Instagram.
Now accepting applications for the Hutt scholarship!
LMCU was founded as Grand Rapids Teachers Credit Union, so we’ve got a soft spot for education. Our annual Hutt Scholarship program now provides 20 high school seniors each with a $2,000 college scholarship.
Applicants are asked to write an original essay that explores a designated topic in new and insightful ways. This year’s topic is “A Day in the Life. Describe one day in your life from the past year.” Essays will be evaluated by a panel of independent judges, with emphasis placed on passion for the topic, creativity, clarity, and originality.
The entry deadline is January 31, 2021. All applicants must be high school seniors (includes home school students) and plan to enter a trade school, college, or university in the next academic year.
Interested high school seniors must complete an application online at LMCU.org/Hutt. Winners will be announced in LMCU’s May 2021 newsletter and online via LMCU’s social media channels and at LMCU.org.
Update on My Teacher is… Grant.
In October, teachers in Michigan and Florida were nominated for LMCU’s My Teacher is… Grant. Twenty-five (25) of these teachers will be awarded a $1,000 grant. This grant can help teachers purchase classroom supplies, aid in online learning, or anything that benefits the educational process.
Nominations are currently being reviewed. Check LMCU’s social media in early December to see which twenty-five (25) teachers will be receiving a $1,000 grant.
We’re like a family (but better).
Ask any LMCU employee what it’s like to work here and they’ll tell you it feels more like a family than a financial institution. From baby steps to giant leaps, we support you with ongoing training and internal promotion opportunities. When you’re sick, we take care of you with paid time off and comprehensive health care. We can even help you get a college degree with our higher education benefits.
“I couldn’t ask for better leadership. Anytime I need something, big or small, they’re right there. What affects one of us, affects all of us. They support us in whatever we do.”
– Charise, LMCU Senior Mortgage Closer
Visit LMCU.org/Careers to view our current openings, including Tellers, Branch Managers, Mortgage Loan Officers, and Mortgage Closers.
Refinancing your home during economic uncertainty.
By: Meg Dunn, Vice President of Mortgage Production, Lake Michigan Credit Union
In these unusual times, one of the bright spots for many Americans has been the drop in mortgage interest rates — leading many to wonder if now is the right time to refinance their mortgage.
When refinancing, start with your overall goal. Once you know your goal, you’ll know whether refinancing is the right option, and what the terms of your refinancing should look like. Here are four goals you can achieve through refinancing.
1. Lower your monthly payment.
By refinancing at a lower interest rate, you could lower your monthly payment or have more of your principle payment go towards paying off your home to build equity faster.
2. Pay off your home sooner.
Refinancing gives you an opportunity to change the terms of your loan, so instead of a 30-year mortgage, a 15-year mortgage would allow you to pay it off in half the time. If your budget can handle the higher payments, you could save thousands over the long haul.
3. Stop paying for private mortgage insurance (PMI).
If you have private mortgage insurance (PMI), refinancing could help you lower your monthly costs by eliminating the need for it completely.
4. Consolidate high-interest debt or renovate.
If you have high-interest debt like credits cards or student loans, a cash-out refinance allows you to use your home’s equity to consolidate multiple loans into one low-interest loan — potentially saving you hundreds of dollars every month.
Another option is to use that equity for a home renovation. Whether you need an outdoor upgrade or a full kitchen renovation, a cash-out refinance allows you to use your home’s equity to pay for home improvements.
Now that you know how refinancing can help you with your goals, here are a few questions to help you decide if now is the right time.
What are the closing costs and how long do you plan on staying in your home?
When refinancing a mortgage, there are closing costs involved, and each lender has different fees associated — ranging from 2%-5% of your total loan amount.* So even though you refinanced at a lower interest rate, the closing costs could wipe out your savings if you’re only planning to stay in your home for a short time. By dividing your total closing costs by your monthly savings, you’ll know the number of months it will take to break even. If you plan to stay in the home longer than that, then refinancing now could be the right move for you.
Do you have stable employment?
In these economic times, it’s important to consider the odds of getting laid off or furloughed. If your employment status changes while you’re going through the refinancing process, it could negatively affect your refinance application.
How long will the refinancing process take?
The historically low rates are prompting a lot of people to refinance, and lenders are racing to keep up. This could cause delays in closing on your new rate. Ask your lender how long the process will take so that you have realistic expectations going into it.
To find out more, visit LMCU.org.
*The Mortgage Reports, “Guide to mortgage closing costs: Average closing costs and how to keep yours low.” Gina Pogol, January 10, 2020. https://themortgagereports.com/35800/guide-to-mortgage-closing-costs-what-averagemortgage- costs-are-and-how-to-keep-yours-low.
**APR = Annual Percentage Rate. Best rate available to well qualified borrowers with under 80% Combined Loan to Value (CLTV). Assumes auto-pay from LMCU checking account. Your rate may be higher based on your specific CLTV, term, and credit score. Rates as of 9/2/2020. Rates subject to change after account opening. HELOC rates are variable and based on the current index margin; rates will not exceed 12%. Payment example: A HELOC with a balance of $20,000 at 3.00% APR will have 120 interest-only monthly payments of $50.96. After the 120 interest-only payments, the full amortization monthly payment will be $138.12 for 180 payments. Home equity loans are available for properties located in Michigan and limited counties in Florida. Fees may differ in Florida. Terms, loan amount maximums, and other restrictions apply. Call or see branch for details. $5 membership required if not a member.
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Our numbers speak louder than words.
Home equity line of credit starting at 3.00% APR.**
“We’re here for you.” It’s become the unofficial slogan of these unprecedented times, and everybody’s saying it. At LMCU, we’re putting our money where our mouth is with special low rates to help you pay less on the things you need most, like 3.00% APR** on a home equity line of credit (HELOC). It works just like a credit card, but without the high interest rate. Use the money to keep up with home repairs, or consolidate high-interest debt. Apply online or schedule an appointment at your local branch.
Apply today at HomeEquity.LMCU.org.