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    Comparing Second Mortgages and Home Equity Lines of Credit

    Last updated 3 months ago

    If you own your home, you can tap into the money you’ve put into the house if you need to cover an expense. There are two ways to access this money: a second mortgage and a home equity line of credit. Which one is right for you? Make an appointment at your credit union to discuss your situation and find out which loan type meets your needs. As you weigh your options, consider the following information.

    Equity Explained

    How can your home help you get money? The answer is equity. Equity is the difference between the market value of your home and the remaining balance on your mortgage. For instance, if your home is worth $300,000 and you have $100,000 outstanding on your mortgage, then you have $200,000 in equity. Any increase in your home’s value also becomes equity. If your home’s value increases to $400,000, then you have an additional $100,000 in equity. Your credit union can extend a loan that is equal to a certain percentage of your total equity.

    Second Mortgages

    Second mortgages are also called home equity loans. They function very much like your existing mortgage, but usually with a slightly higher interest rate. Second mortgages have fixed terms and interest, and you make monthly payments. Second mortgages are paid to you as a lump sum of cash.

    Home Equity Lines of Credit

    Home equity lines of credit, or HELOCs, act more like credit cards than loans. Your credit union will authorize you to use your home equity as credit that you can spend in increments as needed. You pay on your account to keep your balance down, just as you would a credit card.

    We offer both second mortgages and home equity lines of credit at GCS Credit Union to help you manage your finances. Our credit union also offers a range of financial products, including debit cards, checking accounts, and auto loans. To find out more, please call our O’Fallon, IL credit union at (618) 797-7993. 

    Compound Interest Explained

    Last updated 3 months ago

    If you save or invest your money, there’s a good chance you’ve encountered the term “compound interest,” but what exactly is it? Watch this video to learn about the concept of compound interest and how it can benefit you as an investor or saver. 

    There are two types of interest that can be earned on savings and investment accounts: simple and compound. Simple interest accumulates only on your initial principal. With compound interest, the interest is added to your principal, so that the interest you earn actually earns interest itself in the future. Your money grows much faster with compound interest.

    What are the right savings and investment choices for you? Contact GCS Credit Union and let one of our experts help you make smart financial decisions about savings, checking accounts, auto financing, and more. Visit our website or call our credit union in O’Fallon, IL today at (618) 797-7993 for more information.

    Tips for Helping a Senior Loved One Manage Money

    Last updated 3 months ago

    When you’re young, the adults in your life teach you how to manage your money. As those loved ones get older, you may find that you need to take the financial reigns for them. If you need to help a senior loved one regain control of his or her finances, GCS Credit Union has services to assist, like our Prime Time Club. Here are a few tips for helping seniors with their money. 

    Be Alert to Signs of Financial Trouble

    Parents and other aging loved ones may be reluctant to ask for help with their finances, so instead of waiting for them to speak up, watch out for signs of trouble on your own. Things like utilities being disconnected or warning letters about mortgages are obvious red flags, but look for more subtle signs as well, such as a lack of food in the home or unusually extravagant purchases. These things can indicate that your loved one is struggling to make ends meet or has lost control of his or her budget.

    Set Up Automatic Bill Pay

    For many seniors, keeping track of bills can be difficult. Avoid late payments by helping your senior loved one set up automatic bill paying services through his or her credit union. Payments can be scheduled in advance so nothing is overlooked, and you can even set up payment reminders. Your loved one may allow you to access his or her credit union accounts so you can set up the bill payments and ensure everything is being covered as planned.

    Consider Power of Attorney

    Power of attorney lets you make financial decisions on behalf of your loved one. Your loved one may resist the idea, but reassure him or her that power of attorney doesn’t mean that you have complete control over the finances—it can be limited. This is a good step to consider if your loved one has a health problem that interferes with his or her ability to make financial decisions.

    GCS Credit Union’s Prime Time Club offers free checking accounts and several other benefits for members over 60. Let our credit union help you make the right choices about your loved one’s financial wellbeing. Call us in O’Fallon, IL at (618) 797-7993 for more information.

    "They take great care of me." | GCS Credit Union Review

    Last updated 3 months ago

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    Why You Should Enroll Your Child in the Cub Club

    Last updated 3 months ago

    When it comes to teaching your kids about financial responsibility, it’s never too early to start. By making saving money part of their lives early, you’ll turn it into a habit that they will carry with them through adulthood. At GCS Credit Union, we have several savings account options designed with our youngest members in mind, starting with the Cub Club. 

    The Cub Club is open to children ages zero to 10 and only requires a $5 opening and minimum balance. As a Cub Club member, your child will have access to great tools from GCS Credit Union to help him or her learn about everything from interest to making deposits and banking online. At age 11, Cub Club accounts are automatically transferred into our CU Savers Club program for children up to 13 years of age.

    GCS Credit Union Cub Club members also get to take part in our kid-friendly community events. To open an account for your child, stop by a GCS Credit Union location in O’Fallon or call (618) 797-7993. Be sure to ask about our other products, including checking accounts and debit cards.  

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