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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.
Accessory Dwelling Units—What Are They?
What is an Accessory Dwelling Unit?
An accessory dwelling unit, or ADU, is an old, but simple idea—having a second small dwelling on the same grounds (or attached to) your regular single-family house. ADUs go by several names, including granny flats, in-law suites, accessory houses, or carriage houses.
What qualifies as an Accessory Dwelling Unit?
To qualify as an ADU, the unit must have a fully functional kitchen, full bathroom and living space. It may be attached to a house or garage, or it can also be built as a stand-alone unit. Typically, you won’t be able to access the primary home from inside the ADU. Also, unlike multifamily properties, which have their own separate utilities and addresses, an ADU will usually share the same utilities and address with the primary residence.
What are the benefits?
ADUs can be used in so many different ways and have great potential benefits and positive impacts for owners. Here are a few:
Increased Property Value. A separate living structure can easily raise property value and, if selling, bring more potential buyers to the table.
Housing for Elderly Family Members. The comfort of offering family members their own private space while still being close by and available is reassuring for everyone.
Hosting Family and Guests. Separate accommodations outside the main house give privacy and relaxation to all parties.
Rental Income. An ADU on your property can provide supplemental short- and long-term income.
Home Office Space. Remote work has become more common and having a space free of distractions can be beneficial.
Can I finance an Accessory Dwelling Unit?
If you are looking for ways to finance the building of an ADU on your property, you may be research construction loan options. However, some lenders may not do these type of loans for ADUs and if they do, they may not be the best option for homeowners. More popular financing options include a cash-out refinance, home equity loan, home equity line of credit or a personal loan. Discuss what financing option is best for you with your local credit union.
Whether it’s housing for loved ones or additional income, building an Accessory Dwelling Unit is worth looking into and can bring limitless value to your life.
To learn more about ADUs and home financing options, register for our upcoming free webinar presented by our Mid Oregon Home Loan team on March 17, 10:00 a.m.
Want to know more? Read additional Mid Oregon blog articles about home loans and lines of credit.
Financial New Year resolutions that are bound to stick
New Year resolutions can be difficult to keep because much of the time, we tend to aim a bit too high. Instead of declaring that we’ll exercise one more time per week than last year, we set a goal of exercising every day. It’s no surprise these resolutions sometimes don’t pan out. The key to keeping resolutions? Start small. With that in mind, here are some financial New Year resolutions that you’re likely to keep.
Save More
As CNBC reports, almost everyone can save a little more than they already are. Make this resolution stick by going through your budget and setting a realistic goal. Trim excess expenses and see where your budget sits afterward. Take those extra funds and add it to your 401(k), your emergency fund or other savings vehicles. Do it automatically once or twice a month to give it extra staying power.
Improving Your Credit Score
It’s time to increase that credit score. Make a goal to bump it up in 2022 by paying down your debt and paying bills on time. If student loan debt is holding you down, look into payment options, like income-based payments and graduated payments, the latter of which start lower and then gradually increase over time. If you have trouble keeping up with bills, set up autopayments or even reminders in your calendar.
Pay Off a Card
Want to pay off a credit card completely? Try using a balance transfer credit card. Search for a card that offers no interest for at least a year. Transfer the debt from a high interest card to the balance transfer card. Then use the money you’re saving on interest to pay down the debt quickly. Just make sure the balance transfer fees don’t eat up all of your potential savings.
This guest article is from the Your Money Blog in Mid Oregon’s Digital Banking Credit Savvy resource. It is made possible by Savvy Money. “What You Need to Know about the 2021 Child Tax Credit” by Chris O’Shea was published in January 2022.
Want to learn more about setting and achieving your financial goals in 2022? Check out our recorded webinar “Achieving Your 2022 Financial Goals“, presented on January 13, 2022.
Read additional articles about New Year resolutions and goals.
Ten Things You Can Do To Improve Your Credit Score
Did you know that almost 40% of Americans don’t know their credit score? If that is you, it stands to reason that you also would not know how to improve your credit score.
Go Banking Rates Survey
Those are the findings of a survey commissioned by Go Banking Rates and reported on Yahoo.com. In the article it states “Despite this crucial (credit score) number playing such an outsize role in the interest rate you can expect to pay on a mortgage or personal loan, many Americans don’t actually know their credit score, let alone the type of score they need to meet their goals.” When you apply for credit, your credit scores help lenders determine whether or not you are able to repay the loan based on your past financial performance.
With a higher score, you qualify for better interest rates, higher credit limits, and more types of credit than you would with a lower score. Your score reflects the way you use credit, and there are no tricks or quick fixes to getting a good score. However, you can raise your score over time by demonstrating that you consistently manage your credit responsibly.
Here are 10 things you can do to improve your credit score:
1. Pay your bills on time. If you have a history of paying your bills on time, you’ll have an easier time getting a mortgage loan, car loan, or credit cards. Even if you’ve had serious delinquencies in the past, a recent history (24 months) of on-time payments carries weight in credit decisions.
2. Keep credit card balances low. High outstanding debt can pull your score down.
3. Check your credit report for accuracy. Inaccurate information on your credit report can be cleared up easily. Always contact the original creditor and the credit bureaus whenever you clear up an error so that the inaccurate information won’t reappear later. Getting rid of the error can improve your credit score.
4. Pay down debt. Consolidating your credit card debt or spreading it over multiple cards will not improve your score in the long run. The most effective way to improve your credit is by slowly paying down the amount you owe. Paying down debt will almost always improve your credit score.
5. Use credit cards—but manage them responsibly. In general, having credit cards and installment loans that you pay on time will raise your score. Someone who has no credit cards tends to have a lower score than someone who has already proven that he can manage credit cards responsibly.
6. Don’t open multiple accounts too quickly, especially if you have a short credit history. This can look risky because you are taking on a lot of possible debt. New accounts will also lower the average age of your existing accounts which is something that your credit score also considers.
7. Don’t close an account to remove it from your record. A closed account will still show up on your credit report. In fact, closing accounts can sometimes hurt your score unless you also pay down your debt at the same time.
8. Shop for a loan within a focused period of time. Credit scores distinguish between a search for a single loan and a search for many new credit lines, based in part on the length of time over which recent requests for credit occur.
9. Don’t open new credit card accounts you don’t need. This approach could backfire and actually lower your score.
10. Contact your creditors or see a legitimate credit counselor if you’re having financial difficulties. This won’t improve your score immediately, but the sooner you begin managing your credit well and making timely payments, the sooner your score will get better.
These ideas won’t create a dramatic improvement in your credit score overnight, but over time, they will. Remember, it takes time to develop a strong profile. Once you’ve done it, you’ll find it easier to apply for credit and favorable interest rates.
Additional Resources
Contact a Mid Oregon loan officer to get advice on taking action. We can help affirm you are taking the right steps, and may have some options to help build up your credit score, like credit builder loans.
Read additional articles on improving your credit score.
Mid Oregon offers a resource within our digital banking platform called Credit Savvy. Using Credit Savvy you can see you score, and easily and quickly understand all of the factors that influence your credit score. You’ll get personal recommendations to see if we can lower your monthly payments on your current or future loans and credit cards. with your Credit Score Event Chart, you can visualize the impact to your credit score over time and how key changes can impact it. And, you can simulate your credit score by selecting possible actions, to see if your score will move up or down.