The Bottom Line
Small business is important to Central Oregon, and to Mid Oregon. Find tips and resources for business, and information about Mid Oregon’s commercial services and business members.
Home Equity Loans: Low-Cost, Tax-Advantaged Credit
Home Equity Loans: Low-Cost, Tax-Advantaged Credit
If credit card payments are eating up your disposable income each month, or if you need cash to remodel your kitchen–or to buy a new car– home equity loans or home equity line of credit (HELOC) might be your best bet.
Tax Advantages
There’s also a tax advantage. Unlike almost any other consumer loan type, the interest on a home equity loan or HELOC of $100,000 or less is likely to be tax-deductible ($50,000 if married filing separately).
Home equity loans and HELOCs are two distinct products. With a home equity loan, you borrow a lump sum of money repayable over a fixed term, usually 5 to 15 years, giving you the security of a locked-in rate and a consistent monthly payment.
Home Equity Loans for One-Time Expenses
People tend to use home equity loans for large, one-time expenses like a major home-improvement project. You also might use one to start a business, make a big-ticket purchase, or consolidate high-interest credit card debt. This type of loan makes sense if you don’t foresee future borrowing needs.
On the other hand, a HELOC is much like a credit card or any other type of open-ended credit. You can borrow money as needed, up to the credit limit your lender assigns. If your lender offers online banking, you can transfer funds from your HELOC to your regular checking or savings account. A HELOC is usually a variable-rate loan, so your monthly payments will change based on your outstanding balance and fluctuations in the prime rate.
HELOCs Offer Flexibility
A line of credit offers flexibility and ready access to funds, making it ideal for unexpected expenses like large medical bills. A HELOC also can help finance a child’s college education, especially for higher-income families who don’t qualify for financial aid.
Since home equity loans and lines of credit use your home as collateral, if you don’t make your payments, you could lose your home. But if you don’t take on excessive debt and you do make timely payments, you can’t beat the low interest rates and tax-deductible interest of a home equity loan or HELOC.
A Mid Oregon Credit Union loan officer can explain which type of home equity loan may work for you. Call us at (541) 382-1795, email us, or visit one of our convenient Central Oregon branches (Now including Sisters!) for more details.
Six ways you can leverage your tax refund
April 15th is almost here!
April 15th is a day most adult Americans will never forget. It’s our tax due date. This year, with the 15th on a Saturday, we have until April 18th to file our taxes.
Have you filed? If so, did you get a refund, or do you expect one? If so, here are some suggestions on how you can make that refund work the best for you.*
Start or Increase Your Emergency Fund
Without an emergency fund, one surprise, major expense can put you in crippling debt, so it’s important to have some money put away. You can check out the Financial Resource Center (FRC) for tips and best practices to effectively start a fund. Mid Oregon has great savings options to help you build your fund as well.
Pay Off High-Interest Debt
Reduce or eliminate any high-interest debt that you’re carrying. You can check out these financial calculators to see what it takes to pay off your credit card debt, or read about ways to help pay off your debt and solve credit problems—all in the Financial Resource Center! Mid Oregon might have an lower cost financing option to take care of whatever remains.
Spend It on Something You Need
Are you having car trouble? Do you need a sofa? Have you put off important dental work? When you’re ready to spend, swing into the FRC for shopping ideas or tips on how to make big purchases without blowing the budget.
Refinance Your Mortgage or Make Home Improvements
When you refinance your mortgage, you must still pay closing costs and fees. This year, use your tax refund to pay for the closing costs, and your refinanced mortgage could save you thousands of dollars per year. Plus, making improvements and additions can really add value to your home in the long run. Check the Financial Resource Center to find out how much you can save by refinancing! Home loans are also offered by Mid Oregon, along with our strategic partner Arbor Mortgage Group.
Invest in a Tax-Sheltered Account
Depending on your income level, goals, age and whether you have already fully funded your tax-sheltered accounts, using your tax refund to get a head start on Roth IRA contributions or 529 college savings plan contributions can be a great move. The FRC has the essential information to help you take the right steps with your investment decisions and savings planning! Our Mid Oregon Financial Services Advisor can give you local and personal service, and Mid Oregon offers IRA accounts as well.
Get a New Business Up and Running
Have you been looking to finally start that venture you’ve always dreamed of? We’re here to help! Use the FRC small business services center as a resource to start, grow and manage your business. It’s a great opportunity to turn your refund into income for years to come and score a few more tax deductions next year. Mid Oregon Commercial Services has great business account and financing resources to help you with your business, too.
*Thanks to Love My Credit Union Rewards and CU Solutions Group for their April Newsletter article used above.
Make Money Your Own Way
Are you looking for ways to make money and maybe even help your family? Maybe you can make money your own way.
Even though the legal working age in the U.S. is 14, there are ways for you to make money before you first become employed.
Is babysitting the right fit?
Here are some questions to ask yourself before you decide to start babysitting:
* Do you like little kids?
* How did it work out when you took care of younger siblings?
* How do your parents feel about you babysitting?
If you want to babysit, the Red Cross offers a one-day babysitter training course that might be available in your area.
Sell, sell, sell!
If babysitting isn’t your gig, another fun way to make money is by selling your stuff. You can either sell old stuff you don’t want anymore, or make items for people to buy.
Ask your parents if they will help you host a garage sale. You can advertise your garage sale by putting up signs around your neighborhood and asking your parents to post about it on social media.
If you have a talent or hobby such as taking photos, painting, or making jewelry, you could also make money by starting your own business.
Big brain to big bucks
Are you a math whiz or a science pro? You can offer to tutor other kids in the subjects that you are best at.
Create flyers to hang up in different areas of your school district. Make sure to list the topics that you are an expert in.
And much more…
There are many more ways that you can earn money. Here are just a few ideas:
* Start a pet-sitting service.
* Ask your neighbors if they need someone to rake or mow their lawn.
* Get a group of friends together to have a car wash.
Always ask your parents for permission before you start any sort of moneymaking job.
When you make your own money, you help out your family and can always count on being able to afford a movie ticket or a new pair of shoes. No matter how you make money, don’t spend it all in one place!