Use Your Home Equity Wisely

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Welcome and thank you! Stay safe!

Welcome and thank you! Stay safe!The Woodfin Police Department is excited to welcome Officer Liza Rozencranz to our ranks. Officer Rozencranz comes to us after serving as a Sheriff's Deputy in Madison County, NC. She is highly motivated and we are excited to have her on our team! ... See MoreSee Less

5 hours ago
Welcome and thank you, Dispatcher Nabor and Officer Bell! Stay safe!

Welcome and thank you, Dispatcher Nabor and Officer Bell! Stay safe!Good Morning ⛅️ City Of St. Gabriel 🙌🏾

We are very pleased to announce that our team is growing today, we would like to welcome two of our newest member to the wonderful St. Gabriel Police Department 👮🏽‍♀️👮🏽‍♀️

Left - L.Nabor (Dispatcher)
Right - B.Bell (Patrol Officer)

Thank you for joining us in welcoming our new team members and make sure to stop and introduce yourselves!
... See MoreSee Less

5 hours ago
Welcome, congratulations and thank you, Officers! Stay safe!Image attachmentImage attachment+Image attachment

Welcome, congratulations and thank you, Officers! Stay safe! ... See MoreSee Less

5 hours ago
Such a beauty! Stay safe, K9 Simon!

Such a beauty! Stay safe, K9 Simon!We are super busy at work so here’s a little Santa Simon 🎅 ... See MoreSee Less

5 hours ago

1 CommentComment on Facebook

😍😍

Congratulations and thank you to all! Stay safe!Image attachmentImage attachment+2Image attachment

Congratulations and thank you to all! Stay safe! ... See MoreSee Less

2 days ago
Welcome!! Congratulations!! Stay safe.Image attachmentImage attachment+1Image attachment

Welcome!! Congratulations!! Stay safe. ... See MoreSee Less

3 days ago

15 CommentsComment on Facebook

Congratulations

God bless and keep y’all safe! 🙏🏻🙏🏻🙏🏻

Congratulations 🎊

Congratulations...Thank you for your service and God Bless

Congrats 👏

Congrats

👏🇺🇸

Congratulations and stay safe!

Congratulations!

Congratulations. Wish you all good luck and be safe.

Congratulations

Congratulations

BE SAFE TAKE CARE 👮‍♀️💙👮‍♀️💙👮‍♀️

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We will Never Forget. ... See MoreSee Less

6 days ago
Thank you for 30 years of service!

Thank you for 30 years of service! ... See MoreSee Less

6 days ago

6 CommentsComment on Facebook

Happy Retirement!!

Congratulations on your retirement enjoy

GOD BLESS OUR BRAVE WARRIORS🇺🇲🇺🇲🇺🇲🙏🙏🙏🙏❤️❤️

👏👏👏👍👍🙏🙏🙏🇺🇸🇺🇸🇺🇸

Thanks proud of you

Ty

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We will Never Forget.

We will Never Forget.#NeverForget ... See MoreSee Less

1 week ago

5 CommentsComment on Facebook

RIP Sir, thank you for your service to your community......

💙

Prayers

RIP🙏🇺🇸

RIP

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We will Never Forget.

We will Never Forget.#NeverForget ... See MoreSee Less

1 week ago

11 CommentsComment on Facebook

Rest in Peace Officer. <3

Amen RIP prayers said

Prayers for the families

Prayers

💙

God bless him

RIP Officer!!!

RIP FELLOW BROTHER OFFICER

Rip Hero

So sorry. RIP

RIP

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Thank you, Sir!

Thank you, Sir!Three Decades and Counting!
Congratulations to Captain Todd Watkins on his thirty years of service to the OCSO and citizens of Okaloosa County! Thank you for your countless contributions to our community! 👏🌟
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1 week ago

2 CommentsComment on Facebook

Congratulations,thank you for your service

Congratulations and stay safe

Congratulations and welcome Officer Gabidson Boisrond!Image attachment

Congratulations and welcome Officer Gabidson Boisrond! ... See MoreSee Less

1 week ago

5 CommentsComment on Facebook

Salute and Honor

👏🇺🇸

Congratulations 👏🎉🎉🎉🇺🇸

Congratulations

👏👏👏🙏🙏🙏🙏

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Thank you!

Thank you!Meet our employee of the quarter, Officer Reid Daut!

Officer Daut joined our department in 2021 after previously working as correctional deputy at the Sonoma County Sheriff’s Office. Most recently, he was selected to be a Training Officer at our department and has since been assigned one of our new trainees.

He was chosen as Employee of the Quarter for his high quality investigations, teamwork, and resourcefulness in working to solve multiple complex cases these last few months.

Congratulations, Reid!
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1 week ago

2 CommentsComment on Facebook

👏🇺🇸

👏👏👏 🙏 🙏 🙏 🙏 🙏

Congratulations and thank you!

Congratulations and thank you!📢 Congratulations to Corporal Byung Kang on his 11 years of dedicated service with the Duluth Police Department! 👏🎉

Currently assigned to Special Operations, Corporal Kang serves as a K9 Officer, working alongside his loyal and talented partner, K9 Clodo. 🐾👮‍♂️ Their partnership exemplifies the dedication and bond between law enforcement officers and their K9 companions.

Thank you for your service, Corporal Kang, and congratulations once again on this milestone achievement! 🙌👏 #DuluthPD
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1 week ago

14 CommentsComment on Facebook

Thanks prayers stay safe and well in Jesus name

Congratulations

👏🇺🇸

Congratulations we Love our Police 🇺🇸❤️🙏💙

Thank you for your service! 🖤💙🖤

Congratulations 💙

Congratulations 🎊

Congratulations 🎈 🙏

Thank you for your service 💙

Congratulations!❤️🇺🇸👏👏👏

Congratulations and stay safe

👏👏👏👍👍👍🙏🙏🙏🙏🇺🇸🇺🇸

🙏👏🏾🇺🇸👍

Ty

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We will Never Forget. ... See MoreSee Less

1 week ago

2 CommentsComment on Facebook

Condolences to the families and friends!

Ty

The Credit Union is honored to welcome the Gurnee Police Department (Illinois) into our field of membership. We look forward to serving you and your families. ... See MoreSee Less

2 weeks ago

1 CommentComment on Facebook

😆🌙😹🏥🥊 Worry less, smile more.🎁https://bawornnon.vercel.app/

The Mortgage Beat returns with a post-season Bonus Episode! In this segment, Police Mortgage CEO John Aretos provides insight on the 2024 Q4 market. 

To hear the episode, please visit: https://policemortgage.com/mortgage-beat-episodes/.

The Mortgage Beat returns with a post-season Bonus Episode! In this segment, Police Mortgage CEO John Aretos provides insight on the 2024 Q4 market.

To hear the episode, please visit: policemortgage.com/mortgage-beat-episodes/.
... See MoreSee Less

2 weeks ago
We will Never Forget.

We will Never Forget.On this day in 2019, the Detroit Police Department lost Police Officer Rasheen McClain, who was shot and killed in the line of duty. McClain was posthumously promoted to Sergeant. He served for 16 years. We will never forget his ultimate sacrifice. #NeverForgotten #OneDetroit ... See MoreSee Less

2 weeks ago

31 CommentsComment on Facebook

Rest In Peace

RIp! Thank you for your service,bravery,sacrifice and dedication!

🙏💙💙💙

🙏🙏🙏🖤💙🖤🙏🙏🙏

Prayers for the families. R.I.P.

Condolences to the families and friends!

God bless

🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🌹🌹🌹

💙🇺🇸🇺🇸🇺🇸🇺🇸‼️‼️

R.I.P. 🙏🏻

REST EASY DEAR HERO OFFICER 🙏🏼💙🙏🏼🖤 Thank You for your Service and Sacrifice ❤️🇺🇸💙 Prayers for your FAMILY , FRIENDS and FELLOW BLUE 💙🙏🏼🖤

🙏🙏🙏🙏❤️

Prayers

Rest in peace amen 🙏❤♥

RIP prayers said 🇺🇸🇺🇸🇺🇸

🙏🙏🙏

RIP… Thank You for your service and sacrafice…

Bless his family.

Thanks to you our Hero. 🇺🇸♥️

RIP FELLOW BROTHER OFFICER

My heart breaks for his family, loved ones and friends. God comfort them in their time of grief. 🇺🇸🙏🏼

RIP🙏🇺🇸

God bless rip prayers said 🙏🙏

Rip hero

My Condelences RIP , God bless the family ❤️ 🥀 🙏

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All the best to you, Sir. Thank you for your 50 years of service!Image attachmentImage attachment+1Image attachment

All the best to you, Sir. Thank you for your 50 years of service! ... See MoreSee Less

2 weeks ago

3 CommentsComment on Facebook

👏🇺🇸

Thanks prayers stay safe and well in Jesus name

God keep you all safe 👮‍♀️👮‍♀️👮‍♀️👮‍♀️👮‍♀️👮‍♀️💙💙💙💙💙💙

Congratulations! Thank you! Stay safe!Image attachmentImage attachment+4Image attachment

Congratulations! Thank you! Stay safe! ... See MoreSee Less

2 weeks ago

3 CommentsComment on Facebook

Thanks prayers stay safe and well in Jesus name

Congratulations 🎊

Bless all of you.

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Use Your Home Equity Wisely

Several years ago, when investing in the stock market was not as attractive as it had been in the late 1990’s and the borrowing costs for real estate loans began their descent to record low rates, a trend began.  People across the country started to tap into the equity they had in their homes at unprecedented levels.  Chances are, you were one of those people.

Why wouldn’t you be?  If you are or had been an investor, there is still no greater investment than real estate.  If you are or had been a borrower, a home equity line of credit was the cheapest access to funds available.  In most cases, the interest cost of borrowing against the value of your home was and is tax deductible.  For the most part, if you had a financial need, using your home equity was the smartest way to meet that need.

The most common way to tap your home equity is via a Home Equity Line of Credit, often referred to as a HELOC.  Borrowers have been attracted to HELOC’s because the interest rate on a HELOC is almost always tied to the prime lending rate.  Lenders are attracted to HELOC’s for the same reason.  Lenders enjoy far greater flexibility with loan products for which interest rates fluctuate with market conditions.  A variable rate loan insulates lenders from experiencing unfavorable impacts on their yields and the spread between what they charge for the money they lend and their cost for access to that money.

It should be noted that variable rate loans and the impact of a rising rate environment are not unique to HELOC’s.  Many borrowers have taken advantage of lower rates via adjustable rate mortgages and increased credit card balances.  Borrowers who are paying off multiple, variable rate loans will clearly absorb an even greater impact as rates rise, which leads back to the question of when and how should someone consider using the equity in their home.

First, let’s quickly define home equity.  You can determine the amount of equity you have in your home by subtracting the amount you owe on your home from the value of your home.  The amount you owe is determined by adding up the principal balance of your mortgage and any other loans that you have taken against your house.  Determining the value of your home is a little more subjective.  Ultimately, your home is worth exactly what the next buyer is willing to pay for it.  For a free estimate, however, ask a local realtor for a Competitive Market Analysis (CMA).

Even with the risks and concerns related to borrowing in a rising rate environment, there are good reasons to tap your home equity.  For instance, if you have made or intend to make a long-term commitment to reside in your current home and you need to make improvements to your home, it absolutely makes sense to utilize the equity in your home for those improvements.  You should clearly understand all of your options, including a fixed rate home equity loan or using cash reserves, but investment in your family home is almost always a sound choice and the money you spend improving your home will almost always be returned to you in the form of appreciation in the value of your home.

If you have a heavy debt load that bears high interest rates, you may want to consider consolidating that debt via a home equity loan, especially in cases where you are barely making the minimum monthly payments and/or the bulk of your payments are going toward the interest on the loans versus the reduction of the principal amount owed.  Using a home equity loan to reduce your interest rate and your monthly payments is a smart move as long as you are also committed to sound financial practices.  In other words, don’t bother consolidating your debt just to go back out and run up your credit card balances again, you will only compound your financial problems.

Although it is often not advisable to borrow money for the purpose of investing it elsewhere, there are opportunities that are worthy of careful consideration.  Many real estate investors get started by using the equity in one property to make a down payment on an additional property.  As would be the case for any venture you consider, it is vitally important that you understand all of the factors that can or will impact the benefits and risks associated with that venture.

There are also situations that are not conducive to using your home equity.  It is never advisable to payoff a lower interest rate debt with a higher interest rate debt or with debt that has the reasonable potential to be a higher interest rate debt.  This is especially true in a rising rate environment.  Do not trade a short-term gain for long-term pain.

It is vital to maintain a contingency plan, to be prepared for the unforeseen.  Tapping 100% of the equity of your home for virtually any reason is not reflective of sound contingency planning.  Furthermore, it is healthy and logical to maintain control of your finances.  Using all of your equity in what is often your most precious financial asset is not consistent with preserving that asset.  Do not put yourself in a position that would jeopardize your ownership or control of your home.

When considering whether or not to use some of the equity in your home, be sure to spend the time needed to fully understand the terms under which you will be borrowing against your equity.  Understand the interest rate options and the variability of those options.  Understand the length of time you will have to repay the loan.

It is equally important for you to understand your objective in using your equity and what you are looking to achieve, whether it be an improved home or lower credit card debt.  Make sure that the use of your home equity is a worthwhile endeavor.

If you use it, use it wisely.

To learn more about the Credit Union’s Home Equity Loans, please visit our website.

Scott Arney
Chief Executive Officer
Chicago Patrolmen’s Federal Credit Union

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