
Indiana Members Credit Union Blog

How is a Home Equity Loan Amount Calculated?
One of the best parts about owning a home is that, generally speaking, it is an appreciating asset. This is true of both turnkey properties and fixer-uppers alike. Another great part of home ownership is that as you continue to pay off your mortgage loans, you build equity and actually own an increasing percentage of your house. Plus, if you do end up improving your home—either through renovation or just diligent maintenance—you are likely increasing your equity by adding value as well. Building your equity in a home is inherently beneficial, but it also opens the door to more possibilities, too—in particular, the possibility of home equity loans.A home equity loan allows you to borrow funding using your home’s value as collateral. It can be a great source of additional funding for things like:
- Home renovations
- College education
- Debt consolidation

What is the Difference Between a Line of Credit and Home Equity?
Home equity loans have significantly increased in popularity in the past few years. In fact, a recent article from USA Today stated that homeowners have an estimated $20 trillion worth of home equity. This alone has significantly boosted the demand for home equity loans and home equity lines of credit (HELOCs). But what do HELOCs and home equity loans do? And what makes these options different from other mortgage loans?
How Are Monthly Construction Loan Payments Calculated?
Many people dream of not only owning their own home, but owning the home of their dreams. Unfortunately, many believe that once they enter “dream home” territory, they’ve entered a realm they simply can’t afford.Their first instinct might be to look into mortgage loans, but those are meant for buying an existing home. Instead, construction loans offer a borrower-friendly financing option for building a brand-new house—the very same “dream home” we mentioned earlier.

Construction Loan Calculator
Purchasing a new home is a big exciting step in life. As such it can also be a bit of an overwhelming or complicated process. For starters you have to decide where you want to live, then find the right house, then go through all the nuances of securing mortgage loans and financing. Of course, this is just one of the more typical ways the home buying process goes. What if your journey looks a little bit different? Maybe instead of buying a pre-existing home, you want to build your own house or renovate your existing home to get it just the way you like it. If that’s the case, you won’t be securing a mortgage, but instead should be looking at new construction loans. In the following article we are going to break down some of the factors that go into a house construction loan calculator to help you determine which construction loan option is best.
How is a Construction Loan Different From a Mortgage?
If you’re in the market for a new house, odds are that you need a loan to help pay for it. And in that search, you might have come across two different types of loans: mortgage loans and construction loans. While they both cover the costs for a new home, they do differ in several areas such as:- What kind of houses you can use them for
- When you receive the funding
- Payoff periods

How Do You Finance a New Build?
According to S&P Global Marketing Intelligence, construction loan volume in the first quarter of 2022 alone totaled $92.4 billion, a year-over-year increase of 18.2%. You might see all this new construction happening and ask yourself, maybe for the first time, whether it’s time to consider building a new home of your own. That can be an intimidating prospect, though, due to the substantial costs and complex planning required.
How Much Should You Get Preapproved for a Mortgage?

How Do Banks and Mortgage Lenders Determine Preapproval Amount?
Most homebuyers rely on mortgage loans to secure the funding they need to purchase real estate. In fact, 64.8% of homeowners in the US have a mortgage. Mortgages are a critical piece of the real estate market, enabling borrowers to own a home without coming up with the entire payment in cash. This allows potential buyers to turn a significant portion of their living expenses into an investment earlier in their lives. Instead of paying rent, you could be building equity, for example.

What Mortgage Can I Afford with my Salary?
Buying a house is an exciting time, but financing a house can be stressful, too. If you are wondering what mortgage would be affordable for you, you are not alone. The short answer is generally you should consider mortgage loans with a monthly payment that is 28% or less of your pre-tax monthly salary. As an example, let’s look at the annual median household income in Indiana of $58,235 or $4,853 a month. Using the 28% rule, this household should consider mortgages with a maximum monthly payment amount of $1,359.

What Is Direct Mortgage Lending?

Mortgage Preapproval Calculator
If you’re looking for a home, you’re more than likely searching for mortgage loans from reputable lenders. You might be wondering “How much house can I afford with my budget?” Determining your budget for a home can be difficult without the right tools. Mortgage payments generally consist of four components: principle, interest, taxes, and insurance (collectively known as PITI). Mortgage pre-approval calculators can help you and lenders understand your current financial stability and what you can afford.

Is It Better To Use A Mortgage Lender or Bank or Credit Union
Purchasing a home is a monumental decision, and moving forward without the right information can end up costing you. There are many things to get done during the house buying process like browsing listings, visiting properties, communicating with your realtor, etc. That all takes place before you get to one of the trickiest parts of all: mortgage loans.
It is easy for people to assume banks are the best option as they seem like the easiest and most trustworthy places to go. That is not always the case, and there is a rise in alternative options as people always want more options when it comes to spending their hard-earned money. So, should you go the old route through a bank or seek out alternative methods like a credit union? That is the question we aim to help you answer with this blog.

What is Too High an Interest Rate for a Car?
Because everyone’s situation when car shopping will be different, there’s no one exact answer to what is too high an interest rate for a car loan. The interest rate you are likely to be offered is based on several main factors that will be specific to you. Knowing what the typical range is will help you understand if your rate makes sense for you.

Is It a Good Idea to Refinance a Car Loan Right Now?
Here at Indiana Members Credit Union, we get a lot of questions about auto loans, and refinancing auto loans is one of the most popular topics our advisors are asked about.
At a high level, the process of refinancing an auto loan basically entails replacing your current loan with a new loan with terms that better fit your current situation. Another way to think about it is that you’re shopping around for a new loan to pay off what’s left on your current loan. In this blog, we’ll answer some of the key questions, so you can better understand when the right time might be for you to think about refinancing.
Here at Indiana Members Credit Union, we get a lot of questions about auto loans, and refinancing auto loans is one of the most popular topics our advisors are asked about.
At a high level, the process of refinancing an auto loan basically entails replacing your current loan with a new loan with terms that better fit your current situation. Another way to think about it is that you’re shopping around for a new loan to pay off what’s left on your current loan. In this blog, we’ll answer some of the key questions, so you can better understand when the right time might be for you to think about refinancing.

Does Refinancing a Car Hurt Your Credit?
Yes, refinancing your car will lower your credit score. But this ding to your credit score is temporary, while the change in your auto loan’s interest rate will be permanent! In some cases, refinancing auto loans can even put cash in your pocket. In this blog, Indiana Members Credit Union is covering all your frequently asked questions about auto loan refinancing so you can make the decision which is in your best interest long-term.
Yes, refinancing your car will lower your credit score. But this ding to your credit score is temporary, while the change in your auto loan’s interest rate will be permanent! In some cases, refinancing auto loans can even put cash in your pocket. In this blog, Indiana Members Credit Union is covering all your frequently asked questions about auto loan refinancing so you can make the decision which is in your best interest long-term.

When Should You Refinance a Car Loan
If you’ve purchased a new car or truck within the past few years, there’s a decent chance that you could see your payments reduced through the process of refinancing. While they’re not as sizable as most home loans, many auto loans are still great candidates for refinancing. Unfortunately, many borrowers simply aren’t aware of this option or how it can help them.
If you’ve purchased a new car or truck within the past few years, there’s a decent chance that you could see your payments reduced through the process of refinancing. While they’re not as sizable as most home loans, many auto loans are still great candidates for refinancing. Unfortunately, many borrowers simply aren’t aware of this option or how it can help them.

Why is it Important to be Pre-Approved Regardless of Credit Score Before Shopping?
Ah, that new car smell! Buying a car can open a whole world of possibilities, but applying for auto loans makes a lot of us sweat. There’s no need to fear, though, and car shopping with pre-approval for auto loans already set up can make it that much less stressful.
Ah, that new car smell! Buying a car can open a whole world of possibilities, but applying for auto loans makes a lot of us sweat. There’s no need to fear, though, and car shopping with pre-approval for auto loans already set up can make it that much less stressful.

Is It Better to Get a Loan Through a Credit Union?
As people begin their search for a loan that best meets their needs, they often ask, “Is it better to use a bank or credit union?” Generally, it is more beneficial to pursue a loan with a credit union instead of a bank. Although other financial institutions do serve a purpose, credit unions offer significant advantages such as:
- Higher savings
- Lower fees
- Individualized and hands-on customer service
- Local expertise
- Lower overall loan rates

Consumer Financial Protection Bureau Fraud
Scammers are using Consumer Financial Protection Bureau (CFPB) employee’s names and imagery to try and steal money. The CFPB has heard from victims, specifically older adults, who were defrauded thousands of dollars from scammers pretending to be with the CFPB. It is recommended that if someone contacts you and says that you have won a class-action lawsuit in a foreign country, or can receive other large, unexpected amounts of money, but must use the CFPB’s assistance to claim the funds, they are lying.
Should I get Pre Approved Before Looking for a Car?

Is Pre-Approval for an Auto Loan a Hard Inquiry?
Most of us don’t have piles of cash sitting around to use for an outright, point-of-sale car or truck purchase—especially when you consider that the average price of a new car exceeds $36,000. That’s why over 85% of new car purchases involve auto loans. The average amount of these loans? Around $26,000.
Now, not all auto loans are the same. Neither are all potential borrowers or lenders. Luckily, there are ways you, as a hopeful borrower, can help improve your chances of securing the loan you need with terms you can live with. One such way to reduce the anxiety before you head out to the lot is through pre-approval for auto loans.

What Score Do Credit Unions Use for Auto Loans?
Credit Unions use your credit score as a factor for deciding whether or not you qualify for an auto loan and what your interest rate will be. When applying for auto loans, you’ll be required to disclose personal information, your employment history, and other financial information. Out of these requirements, your credit score can often be the most impactful— and elusive. It’s not something that you can always track in real-time, and there are many different score providers that can give conflicting credit reports.
In this blog, we’ll take a closer look at how credit unions obtain and weigh your credit score and what that means for your car buying experience.

Making A Career Change? Consider IMCU
Indiana Members Credit Union (IMCU) is a great place to work, comprised of leadership that fosters a culture dedicated to creative financial processes, enhancing member service, employee success and community involvement. IMCU prides itself on promoting a family-like atmosphere, both for those that work at IMCU and in service to our membership. Our employees enjoy excellent benefits, a generous paid time off plan, bonus opportunities, tuition reimbursement assistance and opportunity for growth and advancement through our many employee-focused initiatives.
In addition, IMCU offers our employees the opportunity to give back to the community. Through our foundation, created in 2010, IMCU employees are encouraged to volunteer and support the communities in which we serve.
What is a Good Interest Rate on a Car Loan?
Reliable transportation is a top priority for most people. Whether it’s simply getting from point A to point B, commuting for work, dropping kids off at school, or just shopping for groceries, a reliable car is a necessity for many Americans. In fact, there are over 280 million cars registered in the United States.
You would think with that many vehicles, the car buying process would be completely optimized and hassle-free by now. In reality, buying a car can still be quite stressful. One of the biggest factors to consider when buying a new or used car is how you plan to pay for it. For many people, an upfront cash offer isn’t always the most feasible strategy. That’s where auto loans come into play.