Category: Holiday

Is a HELOC a good financial choice?

A Home Equity Line of Credit (HELOC) is an easy way to borrow money using your home’s value as collateral. Let’s look into how a HELOC works and whether this option is right for you.

A home equity line of credit (HELOC) works much like a credit card. With money drawn from a HELOC, you can pay for things like home remodeling/repair fees, credit card debts, or even save it for rainy day funds.
A HELOC’s interest rates can be significantly lower than a credit cards

How Much Can You Borrow with a HELOC?

The first step in deciding if a HELOC is right for you is knowing whether you have enough home equity to qualify. This will also determine the amount of the credit line that you’re eligible for.

Your home equity is the difference between your home’s appraised value and your mortgage balance (assuming you have an existing mortgage).

Example: HELOC for a home worth $500,000

if your home is worth $500,000 and you have 50% equity, you may be able to borrow as much as $150,000 in a Home Equity Line of Credit (HELOC).

Let’s break that down.

If your home is worth $500,000 and you owe $250,000, your equity is 50%.

$500,000 – $250,000 = $250,000
- If your home is worth $500,000 and you don’t have a mortgage, your equity is 100% ($500,000 – 0 = $500,000).
To estimate your possible HELOC credit limit, calculate your combined loan-to-value ratio (CLTV ratio, or your line of credit relative to your home equity). Most HELOC lenders allow a CLTV of at least 80% on your main home, sometimes higher.

To estimate, multiply your home’s appraisal value by 0.8. This is approximately how much money lenders may let you borrow against your home. With a home value of $500,000, it comes to $400,000.

$500,000 x 0.80 = $400,000
Then, subtract the amount you still owe on your existing home loan. For our example, let’s estimate that to be $250,000.

$400,000 – $250,000 = $150,000 credit limit for our example HELOC.

So, How Does a HELOC Work?

A HELOC is a revolving line of credit with a variable interest rate, like a credit card. It also has a fixed term and a defined repayment period, like a mortgage.

A credit card’s credit limit is based on your household income and credit score. You can spend as much, up to the credit limit, or as little as you want in each billing cycle. When you get your statement, you have to make at least the minimum monthly payment, but you can choose to repay the entire statement balance if you don’t want to accrue interest. When your payment is processed, your available credit increases by the amount of your payment that went toward the balance. If a portion of your payment is going to interest, this portion will not contribute to your available credit.

A HELOC is similar, but your credit limit is also based on how much equity you have in your home. Additionally, a HELOC has two periods:

First, there is a draw period, typically several years, during which you can borrow up to your credit limit and make interest-only payments.
Then, there is a repayment period, generally several more years, when you can no longer borrow money but must repay your outstanding balance with interest.

What are the steps to get a HELOC?

Apply with a Benchmark online, in person, or over the phone.
You will be asked to submit supporting documents including photo ID, paystubs, tax returns, proof of assets, bank statements, current mortgage details, and other financial information
If approved, Benchmark will issue an initial, conditional approval
Benchmark will order and schedule an appraisal of your home.
Our underwriters will check your application and make sure everything’s in order
Your final approval will be sent by your underwriter
Close the loan and receive funding. Since a HELOC is not a lump sum loan, you’ll receive a special account or card allowing you to access your HELOC as needed

What else should you know to decide if a HELOC might be a good choice for you?

We recognize that not every loan product is right for everyone. There are a few more things you should know about HELOCs.

Like most credit, the better your credit score and credit history, the higher the chances are that you will be approved.
A HELOC is a very low cost way to borrow money, and can be an attractive option if you do not have a substantial amount in savings, and are in need due to a crisis or economic downturn.
You can use a HELOC to pay for almost anything, and funds are easily accessible once open.
If you feel burdened with credit card debt, and you’re looking for a way to save on interest, a HELOC could be a great tool.

Curious to learn more?

At Benchmark, we are committed to listening to your goals and setting you up for future success. To learn more, Contact your local Benchmark branch. Contact us today for personalized information. Call me yourself or request a call from me. WeI would be honored to provide you with our famous excellent service.

Benchmark brings you home.

15 Tips For An Easy Mortgage Process During The Holidays

by Holly Taylor

‘Twas a crisp, cold, clear night, when we hoped for a house. 
With my hot cocoa stirring, I looked at my spouse. 
We’d mapped out our assets and budget with care, 
In hopes that our offer would not catch a snare. 
The children were nestled all snug in their beds, 
While dreams of new bedrooms danced in their heads. 
My spouse in their slippers, and I in my cap, 
Had just settled down for a long winter’s nap. 
When from my cell phone there arose such a clatter, 
I sprang from my bed to see what was the matter. 
Seeing the name, I answered in a flash;
Our offer was accepted, with a loan, not of cash.
What a gift to receive, our hearts were aflutter — 
In the morning we'll celebrate with hot scones and butter. 
When what to my wondering eyes did appear, 
A little less worry and a little more cheer.
With the offer accepted, I hung up the phone.
Knowing that we were approved for the loan,
What should we do now? We were happy as larks!
The news was like light after uncertain dark,
I feel joy for the mortgage we have with Benchmark!

Your housing timeline may have you moving right in the middle of the holiday season. It can be a crazy time, but that’s no reason not to seize the day and make some holiday memories in a new home.

However, it’s also a season when personal budget planning often gets neglected to make room for extra joy and memories — sometimes with an expensive price tag.

Benchmark is here to help.

As you assess your financial situation, be mindful of your spending. Be aware of your normal budget, and pay careful attention to your holiday expenses.

At Benchmark, we are committed to delivering a smooth and easy mortgage process. Keep these lists handy as you start your home buying process this holiday season:

DO’s:

Keep an eye on your holiday budget — remember not to make big purchases that might affect your credit score.
Keep in mind that interest rates are sometimes lower during holiday months.
Let family and friends know that you have moved addresses so they know where to send your housewarming gifts!

DON’Ts:

Don’t make any large purchases that require credit checks or open new lines of credit. This can affect your credit score and change your loan status.
Don’t wait until the last minute to complete and send the required documents to your loan officer. Doing it in a timely manner will ensure a smooth loan process.
Don’t rush putting an offer on a house just so you can close before the holiday season. Remember, this is a long-term decision.
Don’t use your entire down payment on holiday gifts. Save as much money as you can.
Don’t accept monetary gifts from relatives (e.g., accepting down payment assistance) without consulting your loan officer first.
Don’t open, transfer, or close any asset accounts without first discussing any plans with your loan officer.

This holiday season may look a little different. Maybe you forego large Christmas gifts and stick to a budget to keep your credit score on target and your mortgage process on track. But, your new home will likely be the best gift you receive this season — and we’d say that’s more than worth it.

“Home for the holidays” takes on a whole new meaning!

At Benchmark, we are committed to helping you with your home loan needs and decisions for future success.

Contact your local Benchmark branch. Contact us today for personalized information. Call me yourself or request a call from me. WeI would be honored to provide you with our famous excellent service for your new loan.

Benchmark brings you home.

Happy Independence Day, from Benchmark

by I Am Benchmark

Happy Veterans Day from Benchmark

by I Am Benchmark

If you or someone you love has served our nation in military service, thank you for your service to our nation. Happy Veterans Day from Benchmark.

The story of Veterans Day began on November 11, 1918, when the Allied nations and Germany went into armistice, bringing an end to “the war to end all wars.” In November of the following year, President Woodrow Wilson said,

“To us in America, the reflections of Armistice Day will be filled with solemn pride in the heroism of those who died in the country’s service and with gratitude for the victory, both because of the thing from which it has freed us and because of the opportunity it has given America to show her sympathy with peace and justice in the councils of the nations…”

and proclaimed November 11 as the first commemoration of Armistice Day. Originally, the day was to be celebrated with parades and public meetings, as well as a temporary closure of business at 11:00 in the morning.

November 11 became a federal holiday when a resolution was passed by Congress on the fourth day of June in 1926, stating,

Therefore be it Resolved by the Senate (the House of Representatives concurring), that the President of the United States is requested to issue a proclamation calling upon the officials to display the flag of the United States on all Government buildings on November 11 and inviting the people of the United States to observe the day in schools and churches, or other suitable places, with appropriate ceremonies of friendly relations with all other peoples.

An Act approved on the thirteenth day of May in 1938 made November 11th a legal holiday dedicated to the cause of world peace to be celebrated as “Armistice Day,” intended to honor veterans of World War I.

After the sacrifice of many during the second World War, and after the conflict in Korea, the 83rd Congress amended the Act of 1938 in 1954 to replace the word “Armistice” with “Veterans”, transforming the holiday we celebrate on the eleventh day of November into a day to honor all American veterans of all wars.

Also in 1954, President Dwight D. Eisenhower stated,

In order to insure proper and widespread observance of this anniversary, all veterans, all veterans’ organizations, and the entire citizenry will wish to join hands in the common purpose. Toward this end, I am designating the Administrator of Veterans’ Affairs as Chairman of a Veterans Day National Committee, which shall include such other persons as the Chairman may select, and which will coordinate at the national level necessary planning for the observance. I am also requesting the heads of all departments and agencies of the Executive branch of the Government to assist the National Committee in every way possible.
President Dwight D. Eisenhower in his Veterans Day Proclamation on November 8th, 2954

While there have been other minor changes since then, Veterans Day has been celebrated as such since 1954, on the history of the day set aside to celebrate peace at the end of the first “war to end all wars.”

To all who have served, Thank You. Happy Veterans Day.

Happy Holidays To You And Yours

by I Am Benchmark

Happy Holidays graphic

We will be closed December 25th to celebrate with our families.

How To Maintain Your Sanity When Hosting For The Holidays

by lmills

Welcoming your friends and family into your home can be one of the most anticipated events of the holidays. Whether you have family visiting from out of town, or if you’re hosting Christmas dinner this year, the fact that your home is the gathering place for your loved ones is a special privilege.

However, all the stress from cooking, cleaning, and social duties of hosting may get in the way of enjoying the moments and memories with your guests. Following these tips may help you achieve balance and celebrate the joy of your holiday gathering.

Prepare in Advance

Get ahead so you don’t feel like you are falling behind. Do you wait until the last minute to do your shopping, or prepare your home for guests? Of course, doing anything last-minute is a tried and true recipe for anxiety or stress. By making a list of what you need from the store early, you may be able to beat the holiday crowd — if you wait until the day before Christmas, you are giving yourself the gift of a stress filled shopping trip. The best cure for situational stress is preparation. You can do it!

Don’t Overcommit

Promising more than you are able to deliver will run you ragged. While it is sometimes easier to say ‘Yes’ than to risk confrontation, Remember, it is okay to say ‘No.’ If you lack space or patience to host guests from out of town, or if you are uncomfortable cooking a complicated meal, it’s okay to say ‘No.’ Your family most likely loves you as much as you love them, and will understand. Ultimately, you will be more relaxed, leading to happier holidays.

Delegate Tasks

Once you have prepared and decided that you can handle hosting your loved ones, it’s time to distribute the work to those willing to help out. Relying only on yourself to get everything done will make it difficult to enjoy the experience. Ahead of time, take down a list of everything you need to accomplish, and try to delegate at least 50% of the tasks to family members or outside sources. If you have limited help, or limited space, this is where prioritization and balance really come to the rescue.

Consider Catering

If you normally find yourself trapped in the kitchen during your holiday hosting, consider catering a meal for your guests to enjoy. Sure, your grandmother’s family pie recipe is better, but is a ready-to-bake pie from the store good enough? Is the catered green bean casserole better than your old standard? Even outsourcing a portion of the kitchen tasks can give you room to breathe, and even enjoy the tasks you’ve reserved for yourself to brag about. Everyone will likely appreciate mixing up your typical holiday cuisine, and you will gain quality time spent with your friends and family instead of stressing in the kitchen. Joy to the host!

What Are Your Tips?

If you have tried these, or if you have your own tips that we should know about, please leave it in a comment below! We would love to hear from you.

Happy Thanksgiving from Benchmark

by I Am Benchmark

Happy Thanksgiving from Benchmark

Jack O’Lanterns: A Brief History

by Jason Haeger

The term “jack-o’-lantern” was first applied to people, not pumpkins. As far back as 1663, the term meant a man with a lantern, or a night watchman. Just a decade or so later, it began to be used to refer to the mysterious lights sometimes seen at night over bogs, swamps, and marshes.

The term originates as early as 1663, but no-one using it at the time had likely ever seen an orange pumpkin. Just like the term “jack of all trades” implies, a “jack-o’-lantern” was a man who carried the lantern to keep watch at night. Not too many years later, the term was used in jest to add lightheartedness when describing mysterious lights seen over wetlands at night. People used to tell stories to explain these lights, and as early as the 1500’s, the Irish stories often involved a character named Jack.

The Legend(s) of Stingy Jack

The stories portrayed Stingy Jack as a blacksmith who invited the devil to a drink. Jack, being stingy, concocted a strategy to relieve himself of the responsibility to pay for the drinks and convinced the devil to transform himself into a coin which could be used to pay the tab. The devil now in the palm of his hand, Stingy Jack walked out on the tab and placed the coin into his pocket with a silver cross to prevent the devil from transforming back. Bargaining with the devil to not take revenge on Jack or claim his soul upon his deathbed, he released the devil from his pocket-sized prison.

Another tale tells of Stingy Jack outwitting the devil once again, when he connivingly talked him into climbing a tree to pick fruit. During the devil’s venture into the canopy, Jack carved a cross into the trunk to prevent the devil from descending back again. Just as at the last, Jack bargains for his safety from revenge and possession of his soul before finally permitting the devil to climb down to stable ground from the tree’s branches.

At the last, Stingy Jack passed away, and his spirit found no rest. He was not allowed into heaven, and the devil honored his vows to deny ownership of Jack’s soul at hell’s gate, and gave him a glowing coal before sending him into the darkness of night to find a hell of his own. Upon receiving this burning ember, Jack placed it into a carved out turnip to roam the earth forevermore. The mystery lights of the Irish wetlands were attributed to Stingy Jack’s lantern’s motions as his wandering soul roamed the lands. The light and its supposed bearer were, together, called “Jack of the Lantern,” or “Jack O’Lantern.”

Stingy Jack Visits the New World

Back home in the British Isles, the tradition of making lanterns by carving turnips, beets, or potatoes occupied by coal, embers, or candles was part of celebrating the fall harvest. Children were known to venture off the road with their make-shift lantern to trick passersby into believing that Stingy Jack or another lost soul was near.

In the new world, pumpkins were key in the survival of early settlers. The following poem gives the example:

For pottage and puddings and custards and pies
Our pumpkins and parsnips are common supplies,
We have pumpkins at morning and pumpkins at noon,
If it were not for pumpkins we should be undoon.”

Pilgrim verse, circa 1633

The abundance of pumpkins made them the perfect choice for Irish immigrants to carve into Stingy Jack’s lanterns. These new vessels became part of the tradition.

From European Legend to Seasonal Decor

In time, children began carving crude faces into them to make them more frightful. The carved face and legend of Jack merged by the mid 1800’s when the carved glowing pumpkins were finally called jack-o’-lanterns.

In 1892, the Mayor of Atlanta included jack-o’-lanterns used as decorations for a Halloween party. Several pumpkins with carved faces and inner lights were placed around the premise, and entered into the American tradition of the modern jack-o’-lantern.

inspired by: http://mentalfloss.com/article/12865/whats-origin-jack-o-lanterns