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Springtime Gardening Tips

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There’s nothing quite like garden in full bloom. And nothing says spring like a row of Pink lilybreathtakingly beautiful flowers blossoming in riotous color. But all that beauty comes after some serious work. There’s planning, planting, maintenance and more. Fortunately, it’s not that difficult to turn your own patch of grass into a botanical work of art.

Here’s how to make it happen:

1.) Prepare your garden

Before you put anything in the soil, you’ll need to get the ground geared up for planting. First, remove all weeds, making sure to pull out the roots. Next, revitalize the soil from its long, dry winter by adding fertilizer or compost.

2.) Determine sunlight exposure

Make sure you know exactly how much sunlight each area of your garden gets so you can purchase the appropriate flowers for each spot. Some plants can handle the midday summer sun, and some will die from that exposure. Others will do well in a shaded area, and some need just a bit of filtered sunlight to thrive. Observe your garden’s sun exposure throughout the day and do your research before purchasing any seeds or plants.

3.) Pick your flowers

It’s always exciting to pick out the flowers that will bring your garden to life. Before you drop a bit of everything into your shopping cart at the nursery though, consider these two factors:

  1. Annuals vs perennials: There are advantages and disadvantages to both. Annuals include begonias, cosmos, geraniums and marigolds. Though they only live for one season, they are typically cheaper than perennials and bloom all season long, giving you more time to enjoy their beauty. Conversely, perennials, which include tulips, lavenders, hibiscus and hydrangeas, last several years but have a shorter blooming life and are usually more expensive. Do you like to change up your garden every year? Would you rather not have to plant each year? Consider each element carefully before making your selection.
  2. Variety will make your garden pop. For incredible results, diversify the colors, heights and flower types throughout your garden. Place a monochromatic flower, such as an orchid, near bicolored tulips. Plant climbing roses, or a vine like sweet peas, near a lower flower bed. Use a row of evergreens to create a darker backdrop for brilliantly colored flowers. Invest in one spectacular flowering tree, like a flowering crabapple or cherry blossoms.

4.) Choose vegetable plants

No garden is complete without some edibles. Here are 4 easy-to-grow veggies to get you started:

  1. Zucchini. The summer squash grows quickly and is simple to plant and care for. To speed up the process, soak your zucchini seeds in moist paper towels and wait for them to sprout before planting.
  2. Peas. Snap and snow peas take several months to grow. You can plant them early in the season; even before the soil is completely warm.
  3. Tomatoes. Sweet cherry tomatoes grow quickly and will turn any salad into a gourmet dish. Choose an area for your vine that gets full sun exposure.
  4. Cabbage. Cabbages need hardly any care; just be sure to use a slug bait to keep those hungry critters away.

5.) Plant!

Here’s the fun part! Before you get started, though, check your seed packet for the best planting time in your region. Make sure you aren’t planting too early or too late in the season.

It’s also important to plan your garden in full detail before you start digging. Measure the spaces you allotted for different kinds of plants, and make sure your plans are realistic so you don’t wind up frantically trying to undo a half-hour of planting because you ran out of room in the designated area.

On the day of planting, your soil should already be moist and prepared for seeding. When planting each seed or flower, determine how far beneath the soil that particular plant needs to go. Then add fertilizer as per the package instructions, gently incorporating the fertilizer into the soil. Next, place your seed or flower in the soil and fill the hole with soil. Lastly, add mulch to help ward off weeds and diseases.

6.) Maintenance

The amount of water each flower needs for growth can differ greatly. Research every plant in your garden carefully to make sure they are all getting the right amount of water. You can also choose to have a sprinkler or a drip system installed to simplify the process. Weed your garden regularly to keep it looking stunning and always trim wilted, dead blossoms off plants to allow new growth to form. Also, check your newer blossoms regularly for leaning and drooping – they may be in the need of support in the form of bamboo stakes or forked branches.

Now that your garden is in full bloom, pull out your most comfortable lounging chairs, pour yourself a tall glass of lemonade and enjoy the beautiful fruits of your labor!

Your Turn: How does your garden grow? Share your best gardening tips, secrets, and advice with us in the comments!

SOURCES:

https://www.houzz.com/ideabooks/85001907/list/10-ideas-from-outstanding-spring-gardens
http://www.hgtv.com/design/outdoor-design/landscaping-and-hardscaping/14-simple-gardening-tips-and-tricks
http://m.huffpost.com/us/entry/7025676
http://www.diynetwork.com/how-to/topics/spring-gardening
http://gardenclub.homedepot.com/3-things-need-know-about-planters/
http://www.promixgardening.com/en/tips/easy-plants-beginners-zucchini-peas-tomatoes-06/?gclid=Cj0KEQjwrsDIBRDX3JCunOrr_YYBEiQAifH1Fs-wNnZsXJkC4dq6PXUMP2zXMcR1RMM1m0p8gZgde0QaAtJp8P8HAQ
https://www.google.com/amp/m.wikihow.com/Plant-Flowers%3Famp%3D1
http://www.improvenet.com/a/choosing-the-right-flowers-for-your-garden

The Pros And Cons Of Bridge Loans

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Buying your second home is nothing like buying your first. This time around, you’re bridge loancoming to the table with the experience of being a homeowner. You know what to expect throughout the buying process, you know what to look for in a home and you know what you can afford. After all, experience is truly the best teacher.

Another major difference this time around is that you’re likely counting on proceeds from the sale of your first home to help cover the down payment and the closing costs of your new home.

But what happens if selling that home is taking a bit longer than you’d anticipated? What if you need to move immediately because of a job opportunity, or because there’s a great home on the market that will be snatched up if you don’t grab it quickly? How are you going to come up with the funds if your own home isn’t selling quickly?

This is where bridge loans come in. A bridge loan provides temporary financing until more permanent financing can be obtained. When taking out a bridge loan, it’s understood that once permanent financing is in place, some of those funds will be used to pay back the bridge loan. Bridge loans are most commonly used to help the borrower span the gap between the sale of one home and the purchase of another.

Terms vary tremendously, so take the time to talk with your loan officer. Some will completely pay up the outstanding mortgage on the old home, while others will only pay off a portion of it, leaving the borrower with two mortgages, or simply lumping the loans together.

Bridge loans understandably have shorter terms than other loans, and are typically more expensive as well. Also, a lender will usually only extend a bridge loan if the borrower agrees to finance their new home’s mortgage through the same institution.

Bridge loans seem to provide the ideal solution to a less-than-ideal situation: You can now house-hunt freely and without waiting for your current home to sell. However, bridge loans are not as simple as they may seem.

Let’s take a look at some of the pros and cons of taking out a bridge loan.

Pros

1.) Freedom to house-hunt

The most obvious benefit of taking out a bridge loan is also the most significant. With this financing in place, you’ll be free to buy the home of your choice, without being bound by the sale of your previous home.

2.) Short lending term

Another big benefit of bridge loans is their short lifespan. Bridge loans usually run for six-month terms, though they can span anywhere from several weeks to several years. In contrast, most conventional loans are structured around a long payback term that can last for decades. The longer the payback term, the more likely it is that the borrower will suffer from a financial setback, which makes repayment challenging or impossible.

This, in turn, can give rise to further financial challenges as the borrower is hit with various penalties and fees, or is forced to take out another loan. The short payback term of bridge loans assures that this loan will not be a source of financial stress for years to come.

Cons

1.) Total debt increases

Any loan a buyer takes out will cause their total debt to climb. Sometimes, a bridge loan will split the purchase of the second home into two mortgages, leaving a buyer with three monthly mortgage payments; one from their previous home, and two from their new one. Other times, the buyer will be left with two mortgages to pay, which can also be a strain on their budget. In either case, an increase in debt means an increase in monthly financial obligations.

2.) High interest rates and fees

To compensate for their short lifespans and the amount of work the lender has to do for them, bridge loans generally have high interest rates, generally reaching between 8.5 – 10.5% of the total loan. There are also various fees involved, such as closing costs, origination fees and more.

3.) Risky contingency

Bridge loans are usually taken out with the understanding that the sale of your existing home will allow you to repay the loan. But what if your house doesn’t sell before the loan is due? This can happen even if you have an interested buyer – they may not get the financing they need or they may back out. This will leave you with a huge debt on your hands that you can’t afford to repay.

It’s important to speak to a Realtor about market conditions before taking out a bridge loan, even if you think you have a buyer. Make sure the odds are in your favor and that it is likely your home will be sold on time before committing to a loan that is contingent on its sale.

If you really need the funds from the sale of your home before the transaction is finalized, but the thought of taking out a bridge loan makes you uneasy, you may want to consider other options. You can take out a HELOC, borrow against a 401(k) plan or take out a loan secured by stocks, bonds or other assets.

And of course, don’t forget to call, click, or stop by Destinations Credit Union for guidance throughout the process of buying and selling a home.

Your Turn: Have you bought a second home recently? How was the purchase different than your first time around? Share your experience with us in the comments!

SOURCES:
http://www.bankrate.com/finance/mortgages/bridge-loans-ease-the-transition-from-one-home-to-another-at-a-cost.aspx 
https://en.m.wikipedia.org/wiki/Bridge_loan 
https://www.thebalance.com/what-are-bridge-loans-1798410 
http://m.finweb.com/real-estate/the-pros-and-cons-of-bridge-loan-financing.html  

Shop Local!

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Your credit union is built on the idea of people helping people.  You already know we can do a better job looking after your money than a mega-chain bank that answers to shareholders, because we know you and our community.  So why give that up when you find a bargain online?  Shopping locally is better for the community, better for the environment and the best way to find something unique that can make all of your friends say “wow.”  

Shopping locally benefits your community. 

When you shop locally, the money you spend stays in the community.  Buying a new pair of shoes from a local shop takes dollars out of your pocket and puts them into the pockets of a local resident, of course.  What you might not consider is that those dollars get spent by the business owners as well, and they’re also likely to spend their money locally.

American Express estimates that about 68 cents out of every dollar spent in local shops stays at home, and if that dollar is spent locally three times, it means that – for every dollar you spend at local shops – $1.45 goes back into the community.  It’s what economists refer to as the multiplier effect, and it’s very powerful.

Fun fact:  The multiplier effect is why the government is still willing to make pennies, even though minting them costs more than one cent.  The multiplier effect is powerful enough to justify all that loose change in the jar next to your bed, and it’s powerful enough to make shopping locally a force for change.

Of course, that money doesn’t just go to shopkeepers and restaurant owners. The local government takes out its share in local taxes.  Even if you hate the idea of taxes, and we all may grumble in April, local taxes go to schools, firefighters, and other services in the area.  Buying dinner at a local bistro can be the reason the town has enough money to fix the potholes on your street. Not a bad dessert.

 Shopping locally is better for the environment. 

You already know about the danger of greenhouse gases and the effects of global warming.  If you don’t remember anything else, you probably remember Al Gore’s visual of a polar bear floating away. What’s easy to forget is that everything you buy had to come from somewhere.  If you’re drinking imported spring water from Fiji, that water flew halfway around the world.  If your new pants were made in China, they racked up frequent flyer miles, too.

It’s really hard to avoid foreign manufacturing, but many local businesses have locally made goods for sale, which eliminates at least one flight your product might take, saving on fuel and greenhouse gases.  Even if the product you’re buying was manufactured overseas, buying it locally can shave a flight or two off the product’s carbon footprint.

Shopping locally is the best way to find hidden gems. 

There’s nothing quite like the feeling of finding something your friends have never seen before. Whether it’s jewelry from a local metalsmith, a purse from a local boutique or pottery from a local artisan, local shops have the best potential for one-of-a-kind, where-did-you-get-that, I-love-it-so much uniqueness out of any shopping you can do.  Anyone can get on Amazon or check out a department store.  It takes a real connoisseur with a real eye for style to shop locally and find the best products.  Show off your personal style with buys from local artisans. The Parkville Towne Fair or the many ethnic festivals are great places to look for local crafts.

One final benefit of shopping locally is that many of your finds come with a story.  Those earrings might be from a local artist who got the inspiration from the nursery rhyme her mother told her, or those plates might borrow their pattern from the artist’s love of pop art.  Whatever the story, local artists will tell you how they came up with their unique designs.  Part of the fun of local shopping is the connections you can build with local artists, and hearing their stories is part of it.

San Francisco started recognizing the historic contributions of local businesses by listing important shops on its historic registry.  Looking around Parkville and Baltimore, which businesses would you nominate for historic status?


And, don’t forget to keep your banking local.  Destinations Credit Union (along with many other credit unions and local banks) is right here in Parkville offering world-class financial services and access wherever you travel.  We’re owned by our members and the money is invested back into our residents and our communities.

Check out the Parkville/Carney Business Association to see many local businesses who support our community.

Sources: 

http://ilsr.org/why-support-locally-owned-businesses/  
http://www.usatoday.com/story/money/business/small%20business/2014/11/21/small-business-strategies-shopping-local/19259277/ 

http://money.usnews.com/money/personal-finance/articles/2011/10/28/how-consumers-and-communities-can-benefit-from-buying-local

Is It Time To Upsize Your Home?

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Life rarely turns out the way we plan, and when a surprise comes along, it’s usually not an opportunity to simplify our lives.  If you’re one of the many parents blessed with one more angel than you had planned for, you understand just how such surprises can make the simplest things much more complicated. Or maybe the innocent angel you’ve been raising has entered adolescence and wants some space alone.  Or maybe it’s gone the other way for you:  You bought a house when prices were low and wages were tight, and now that you have some equity and a higher income you’d like to bump up your standard of living.

If any of those scenarios sound familiar, it might be time to upsize your home. But is expanding right for you? 

Upsizing is great … 
You probably don’t need anyone to tell you that a bigger house in a nicer neighborhood would be fantastic.  If you could get the kids out from under your feet, you could go back to reading that book you never finished or start that workout regimen you’ve been putting off, or whatever it is that makes you want to plunk down your hard-earned money for a new home.
But there are really strong arguments to be made for upsizing that might not be as obvious.  For example, you may not actually want more square footage.  One way to upsize without getting a giant house full of rooms you might not need is to look into adding outdoors space.  Some homes have gorgeous patios, outdoor kitchens and even wood-burning outdoor pizza ovens!
Another alternative to upsizing your space is to move into the home of the future.  That Cape Cod or Queen Anne you’re in right now might be beautiful, but is it built for the 21st century?  Are the speakers built into the walls?  Is it set up for home automation?  Or does it have that one bizarre room with no outlets, like some mid-century houses in the Midwest?  For some people, particularly those with a home business, it can even be worth paying more every month if doing so moves you to a neighborhood with faster Internet.
Baby Boomers have been upsizing their homes at a surprising rate, often moving into larger homes for retirement.  Usually, people move into larger homes because they want the space and retirees presumably have an empty nest.  Moreover, as we get older, it can be harder to lug a vacuum up the stairs or commit to mowing an enormous lawn every weekend.  But Boomers have learned the value of luring others over, often choosing houses on artificial lakes or in gated communities with kid-friendly amenities.  Suddenly, the big house is a blessing, because there’s room for everyone at Thanksgiving!  If you’re wanting to cut down on your travel time or increase your hosting duties at social events, a bigger house might be just the ticket. 
… But maybe not? 
You’ve been through this before, when you bought your current place. Buying a home is a little tedious and a lot expensive.  As you’re looking back on it, you might wonder why you’d ever go through that process again when it might be easier just to ask one of the kids to sleep in a tent out back or put up guests in a nearby hotel.
The good news is that it’s not going to be that difficult this time.  You know what you’re doing and you should have fewer surprises.  You’ve got the down payment set up through the equity in your current home.  And if you’re already financing through [credit union], a new loan approval will be fairly quick and easy. 
What about right now? 
If you’re considering the idea of upsizing your home, now’s the time for action. The dollar is gaining steam and plenty of economists are predicting we’re likely to see interest rates go up at some point this fall.  If you can get in before then, you’ll save some real cash in the long run.
It’s also a good idea to act now because you can catch both sides of the housing recovery.  If your home has regained its value, but you know a neighborhood that hasn’t gotten back to full value yet, you can make a shrewd investment to get a bigger, nicer house in the other neighborhood and wait until that new home gets to the value it should have been selling at all along.  Right now, you’ve got a great buy low, sell high opportunity.
If you’re ready, or you think you might be ready to think about being ready to upsize your home, give Destinations Credit Union a call.  Rates are still fairly low.  If you don’t know if you can afford to upsize, give us a call anyway.  Our home loan specialists can help you figure out if upsizing is the way to go, help you build a budget, or show you our construction and remodeling loans if you’re looking to upgrade your new home before you move in.

Building A Bridge To Retirement: Leaseback Arrangements

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Whether they want to get more sun, get closer to grandchildren or downsize their home to cash out some equity, Baby Boomers are moving more often during their first few years after retirement than did the previous generations of retirees. The final year in the workforce can feel a lot like moving, as individuals run themselves ragged trying to make last-second arrangements, finalize budgets and journey into a yet-unexperienced phase of life. So retirees who are moving often have twice the stress, too.  Leaseback arrangements, a staple of commercial real estate, have become far more popular as Boomers retire, allowing retirees to eliminate some of the stress and uncertainty involved in moving during retirement. 

How it works 

A leaseback is a financial arrangement in which an individual sells their home with the understanding that they will immediately enter a lease agreement with the new homeowners so they can stay in the house for an agreed-upon amount of time.  Leasebacks can work two ways for those nearing retirement. First, a retiree can sell the house in which they’ve been living and lease it from the new homeowner until they retire, or alternatively, retirees can buy the perfect retirement property as soon as it becomes available and lease it back to the previous homeowners until the retiree is ready to move in.  Leaseback arrangements don’t have to be complicated or intimidating, and they can provide security to both sides of a home sale. 

Benefits for home sellers 

  • Selling a home before retirement ensures retirees know exactly how much money they will get for their home.  One of the scariest parts of retirement planning is the fear that something will go wrong. Knowing exactly how much money a soon-to-be-retired individual will get for their home can help provide some peace of mind.
  • Leaseback arrangements let homeowners take a long time selling their home while having the confidence they can begin the process early without ending up without a place to live. The extra time ensures they don’t have to jump at the first offer that comes along, and can wait for a good bid.
  • With a traditional home sale, there is the potential that retirees won’t sell their home in time and then end up with two monthly mortgage payments.  A leaseback arrangement lets retirees sell their home first, guaranteeing they won’t end up with two mortgages.
  • Arranging a leaseback gives retirees cash in hand to improve their financial outlook.  By selling their home and becoming renters for a year, retirees can reinvest their home equity in the high-return parts of their portfolio, pay off high interest credit card debt or finance the business they plan to run in retirement.
  • The cash from a leaseback also helps reduce the uncertainty of the first year, when most retirement calculators ask people to guesstimate their expenses.  The first year of retirement is often the most expensive, as newly retired folks take celebratory vacations, buy hobby supplies or make COBRA payments while they await Medicare or Medigap eligibility.
  • Leaseback arrangements can also help retirees who are too young for full Social Security or pension payments by giving them cash up front to hold them over until they can receive full benefits.

Benefits for homebuyers

  • While leaseback arrangements offer more benefits to sellers than they do to buyers, they still offer buyers some pretty big advantages.  Most importantly, buying a home and leasing it back to the current residents ensures that retirees who can wait a little while to move in can get exactly the home they want.
  • Nothing says that homeowners need to lease their home at the same price as the mortgage.  By entering a leaseback agreement and waiting an agreed-upon amount of time, retirees can make a profit off of their retirement home while they wait!
  • Leasebacks give those near retirement the ultimate bargaining chip when they’re negotiating the sales price: By starting the process earlier and having more time to shop for a retirement home, those nearing retirement have the ability to walk away, helping ensure they get the best possible price.

Arranging a Leaseback

Arranging a leaseback is actually quite simple and only involves two steps, one of which you’ve done before.  First, arrange a home loan like you would for any other residential property.  If you already know what you want to buy, apply for your mortgage at Destinations Credit Union.

Then, talk to your realtor about a leaseback arrangement.  Many realtors offer temporary leaseback agreements as a standard part of a sale, so even if they haven’t arranged a long-term leaseback before, it should be a piece of cake.

Sources

Home Equity: Loans Vs. Lines of Credit

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If you are looking for funds to improve your home, using the equity in your home can be a great way to finance the improvements.  Using the equity in your home is not something to take lightly, but if you are doing something to improve the value of the home, it can be well worth your while. 

What is My Equity?

The available equity in your home is calculated by taking the current market value of the home (as determined by an appraisal) and subtracting the current mortgage balance.  Destinations will loan you up to 80% of that amount.  To get a rough idea of what your home is worth on the market, you can check internet sources, such as zillow.com, for recent sales of homes in your neighborhood.

Loans Vs. Lines of Credit

A Home Equity Loan is a fixed-rate, fixed-term loan.  The payment and the interest rate are constant over the agreed-upon term.  Therefore your payment amount will not fluctuate.  You cannot borrow against the equity again until the loan is paid off.

A Home Equity Line of Credit (HELOC) is an open-ended loan that you can borrow against any time you need the funds.  The line of credit is up to 80% of the equity in your home.  The rate on the line of credit is generally lower at the time you apply because it is a variable rate.  As market rates rise, so may your interest rate.  With a HELOC, you can draw against the line whenever you need the funds. 

Both options provide low rate loans to accomplish your goal.

With Destinations Credit Union, our HELOC rates are the Prime Rate minus 1% with a floor of 4%.  Since the Prime Rate is now at 3.25% (and has remained so since the end of 2008), our current rate is 4% Annual Percentage Rate.  Prime would have to rise to more than 5% before the rate would rise on our HELOC.

If you are interested in exploring a Home Equity Loan or Line of Credit, contact us through our website or give us a call at 410-663-2500.