By John Aretos, CEO of Police Mortgage
We know the police in particular love their toys, and some of those toys are Harley-Davidsons, RVs, and boats. And hey, God bless them, because you know what? If anyone deserves it, it’s first responders to help them enjoy their lives.
I’ll speak to the credit part first. we have a partnership with someone who can help with your credit. If you are looking for a police loan for one of those aforementioned toys but your credit score isn’t where it needs to be our “patrolman credit union” has someone who can help you. Maybe you don’t have the credit to buy that toy today but we can help you to build a better credit score in the near future. Whether you are working with our parent company, Chicago Patrolman’s Federal Credit Union, or the National Police Credit Union this service is free of charge again and part of the benefits in working with us.
For those who have good credit and just want tap into the equity of their home, you have to realize that home equity lines of credit are tied to the prime rate plus or minus an adjustment. When money is cheap you borrow. When money is expensive, you don’t necessarily want to borrow.
Well, money’s expensive right now. Home equity lines of credit are going to be driven by a floating rate to prime. So, right now and probably for at least the near future, those rates are likely going to be a little bit higher than the client expects.
If you are looking for home equity loans for police officers is that really something you want to do right now? Is it a good idea? I think it has to be a very specific circumstance by which you understand that there has to still be a repayment on that loan.
A lot of home-equity products include a variable rate, but they also include an interest-only payment for a set period of time. I would be careful with that because you’re not paying down principle. As a result of that, you might wind up having a situation that isn’t much different from a credit card.
The reality right now is if you’re looking to do a home addition, or some type of work on your home, it may be a wise idea to use the equity in your home. However, if you’re using it to consolidate debt then you have to make sure that you cancel that debt out and not just taking out other debt.
At Police Mortgage we don’t do law-enforcement loans with an interest-only component, which is good. But you also have to understand that you could be adding another 15 or 20 years to something. I say that when you are tapping into your equity, there needs be a means to an end. There also has to be an exit plan.
Police and many other first responders are on a fixed income. So, I generally don’t advocate taking out equity unless there is a plan and understanding to pay it down. In other words, “How are you gonna get out of that situation?”
Are you anticipating that you’re going to refinance the house and then consolidate the two mortgages? Well, two years ago, that was a great idea. Now it’s disaster. You probably can’t do that without blowing your mortgage payment up.
So, the person coming to a professional police credit union who has a temporary need, and they know that they’re going to be able to replenish that balance and pay down the debt, then tapping into equity may make sense. That’s the real true spirit of a home equity line of credit.
There’s also something called a fixed rate home equity loan, which is not a variable rate. This is one of the police loans that we offer that has a set dollar amount and a set loan term, but those rates are fixed and are higher. They also come with no flexibility because you have to take the money all upfront. Then you are paying installments that are secured by a mortgage against your property.
Again, if you have an exit plan; if you know what you’re trying to do with a police home loan; and you have a plan on replenishing it; by all means, go for it. Those are the aspects of a law enforcement house loan our clients need to consider. We at Police Mortgage are happy talk to people with the intention to inform and educate.
You want to set yourself up for success, not failure. You set yourself up for success by handling debt responsibly. Part of handling debt responsibly is honestly asking yourself :
“Do I really need the addition to the house?”
“Do you need to consolidate that debt?”
“Do you really need that boat?”
Because the two happiest days somebody owns a boat is the day they buy it and the day they sell it, right? So, let’s be honest about that and understand the consequences.
Police Mortgage specializes in conventional mortgages, purchase money transactions, FHA loans, and VA loans. Led by founder and CEO John Aretos, Police Mortgage is known and respected for providing clients with exceptional service, customized terms, quick and easy closings, and low money down options. To learn more about Police Mortgage, go to www.policemortgage.com or call 312-499-8878.
Police Mortgage for First Responders Who Are Second To None.
Chicago Office:
100 W. Randolph, 9th Floor, Chicago, IL 60601.
Springfield Office:
320 W. Washington, 3rd Floor, Springfield, IL 62786. | Phone: 888.473.4858
I have my bachelor’s in business administration and have been involved in the banking industry for over 10 years. During this time, I managed two of the Chicago Patrolmen’s Federal Credit Union locations prior to transitioning to Police Mortgage. I have family members who are police officers with the Chicago Police Department. My work has been very rewarding, and I take pride in having assisted countless members and their families with their financial needs and financial wellness. My hobbies include exploring new restaurants in the city and running for marathons that support pediatric cancer foundations and Chicago Police Memorial Foundation’s Run To Remember. I come from a large family primarily from the south side of Chicago and love to share all the diversity and beauty the city has to offer with my two children.
I am honored to grow up in a multi-generational family of Chicago Police Officers. I joined Police Mortgage in the summer of 2020 and love the opportunity to help both first-time buyers and repeat clients alike achieve their dreams of purchasing a home. Having been born and raised in the south suburbs of Chicago, I happily live in the Lakeview neighborhood today. Along with my two younger sisters, I am a graduate of the University of Illinois at Urbana-Champaign and a lifelong Chicago Bears fan. I have a strong passion for food and love exploring the vast array of restaurants throughout our city. Nothing makes me happier than spending a summer afternoon on a golf course with family and friends!
I joined my brother at Police Mortgage as a loan officer in August of 2021 after a 10-year career in sales and marketing. Most recently, I worked as a Senior Account Executive for Ricoh North America, an office electronics company, where my main responsibilities were building new client relationships and maintaining over 400 existing customer accounts. I believe my work experience has transferred over to the mortgage industry well, because I am able to multi-task effectively while working with multiple customers. The skillset I learned in my previous employment allows me to stay organized and to manage my time well for my customers. My number one goal is always to make the loan process as quick and painless as possible for our borrowers. I am excited to further develop the Police Mortgage brand with my brother. It is a unique situation, and I believe working in an office together allows us to help our borrowers even more due to streamlined communication and our ability to help each other with our respective files. I like to spend my free time relaxing, watching sports, exercising, going out to eat with my wife, and trying to keep up with our three daughters – all under five years old!
After graduating from the University of Missouri in 2015, I moved to Chicago where I began a career in marketing at a firm called Ansira. I sought a career change and contacted Police Mortgage, where I was first introduced to the mortgage industry. I have spent the last 5 years training with our CEO, John Aretos, who has taught me all of the intricacies of the mortgage process. I love finding solutions for our clients to help them purchase the home of their dreams. I feel a huge sense of accomplishment when helping homebuyers, especially first-time homebuyers, all the way through the loan process, from pre-approval to closing day. I recently moved back to my hometown of St. Louis, where we opened a new office. I am excited to help start this new chapter for Police Mortgage. My wife, Megan, and I are happy to be back in our hometown. We are always checking out new outdoor events such as music or food festivals – anywhere we can take our dog, Remy!
As the CEO of an organization associated with serving the Police and their loved ones, I am privileged to play a role in helping our clients achieve their life’s financial goals. Our mission is to make the home buying or refinancing process as comfortable as possible, providing our clients with competitive products and excellent service.
I was born and raised in the Chicago metropolitan area, and I have a deep-rooted love and appreciation for the diverse culture which makes our city so special. My two older siblings and I grew up working in our parent’s restaurant, which instilled a work ethic and sense of family that I carry with me to this day.
I am a graduate of Indiana University and have been involved in the mortgage industry for nearly 25 years, helping thousands of clients save money or finance the home of their dreams. My passions are passing down my love of food, music, art, snow skiing, and red wine to my three children, who motivate me to be a better person each and every day!
