Current news for Costco members
PHO TOS: PHO TODISC
Home equity alternatives
IF YOU’RE A HOMEOWNER, you can
borrow against the value of your house
through either a home equity line of credit
(often called a HELOC or a line) or a home
equity loan (often called a HEL or loan).
Both are essentially a second mortgage.
Generally, a HELOC is a good choice to
meet ongoing cash needs, such as college
tuition payments or medical bills. A HEL
is more suitable when you need money
for a specific, one-time purpose, such as
buying a car. Here’s a look.
Home Equity Line
of Credit (HELOC)
Home Equity Loan (HEL)
What you get
Revolving credit with a specific
credit limit of up to 100 percent
of the value of a home (its
value minus all debts against it).
Some lenders allow borrowing
up to 125 percent of the value
of a home.
A fixed amount of money up
to 100 percent of the equity in
a home (its value minus all
debts against it). Some lenders
allow borrowing up to 125 percent of the value of a home.
Provide proof of income, home
ownership, mortgage and
amount of equity in the home.
An appraisal is usually required.
Provide proof of income and
home ownership, and proof
that at least 20 percent of the
value of the home is paid off.
An appraisal is usually required.
Minimum payments (as little
as interest only) each month;
eventually the entire sum borrowed plus interest is repaid.
Fixed payments of interest
and principal over a fixed
period of time.
You have a 10- to 20-year
period when you can draw on
the line (up to the credit limit),
after which you have a fixed
period to pay off the outstanding balance plus interest.
The term of the mortgage can
be as short as a year or as long
as 30 years.
Usually no closing costs, but
may have an annual fee.
Closing costs that are lower
than for a first mortgage.
Draw funds as needed using
special checks or a credit card.
Receive one up-front lump sum.
See the payroll
articles on page 51.
Lending Tree’s Home Equity Financing program for
Costco members offers HELOCs and HELs with great rates
for Costco members and a Costco Cash Card ($100 for
Executive Members, $50 for Gold Star/Business members)
after closing. To find out more, go to costco.com, click on
“Services,” then on “Home Equity Financing,” or call toll-free
NOVA INFORMATION SYSTEMS, Costco’s
merchant credit-card processing provider, has
introduced a new option for the service.
Merchants can now use Dynamic Currency
Conversion, converting international Visa
and MasterCard credit-card purchases
into the cardholder’s home currency at the
point of sale.
The benefits? International customers
walk away from a transaction with a receipt
showing exactly what they spent in their
home currency, and the merchant receives
a 1 percent rebate on the transaction. A
definite win-win scenario.
To learn more about the Costco-NOVA
program, call toll-free 1-888-337-1883 and
mention source code 83105, or visit
costco.com, click on “Services,” then on
“Merchant Credit Card Processing.”
New Web look for
SHAREBUILDER, provider of Costco’s
automatic online investing program, has
just launched a new Web site focused on
making it even easier for members to invest
online. Enhancements include a simplified
investing platform, streamlined account
management system and more powerful
research tools and resources.
Now members can also take advantage
of market news, instant stock quotes and
charts, analyst recommendations and a listing of the most actively traded stocks.
For more information, or to open an
account, go to costco.com, click on “Services,”
then on “ShareBuilder Online Investing.”
ShareBuilder is offered through ShareBuilder Securities
Corporation, member NASD/SIPC, a subsidiary of
ShareBuilder Corporation. ShareBuilder Securities
Corporation is a registered broker/dealer that is not
affiliated with Costco.
Don’t forget to
use your Reward
on your next trip
To learn more about our complete suite of member services, click on the “Services” link at costco.com or call 1-800-220-6000.