Benefits of Taking Out a Loan with a CU vs. a Bank

Lower rates: Auto loan averages for CUs as of July were 2.85%  on a 36 mo. car loan vs. Banks @ 5.59%.  Therefore, banks are charging nearly twice as much for the same loan.

Easier to borrow: Community-based CUs tend to be easier to deal with than megabanks. Lending decisions are more likely to be made locally with more flexibility.

In addition, while few national banks make signature loans(unsecured loans), CUs regularly offer this type of loan to their members with good credit.  CUs also offer lower-dollar loans than banks.  You could get a $500 signature loan with a CU, but probably not at a bank because it wouldn't be profitable to them.

Loans through CUs are usually reviewed and completed in a much quicker time-frame.

Lower fees:  When it comes to fees, you will probably find better deals at CU’s than at giant commercial banks.  Whether is for fees to maintain loans, checking accounts, ATM fees, or penalty fees for overdrawing, you are more likely to have fewer and lower fees at your CU.

Credit Unions are typically smaller than banks so talking with, meeting with or working with a real live person happens much sooner in the loan process.  If you've been a member for a while, you might have even talked to the person who makes the decisions on the CU's loans.

Credit Unions offer loans that a lot of traditional banks do not.  Overall, CU rock compared to traditional banking institutions!

Post by: Lori S.

Tips for the First-Time Home Buyer

Do you have dreams of buying your first home?  Whether you’re ready now, or even if you don’t think you’ll be ready for a year or two, it never hurts to be prepared.  Talk to a loan officer about different loan options and look over your current debt.  If you need to, take the steps now to boost your credit rating or pay down debt.  When you ARE ready to start shopping for a home, stop in to chat with that loan officer again and get pre-approved for financing.  This will help you determine the price range of homes that you can afford before you start looking.  You should also talk to a real estate agent about what you’re looking for and get signed up with email listings.  You’ll stay up-to-date with new properties while at the same time getting an idea of the types of homes within your budget.    

One thing that will help you from the start is saving. If you know you’ll be in the market to buy a home in the next couple years, you’ll want to start to save what you can. Putting down 20% will help you avoid having Private Mortgage Insurance (PMI) added on to your monthly mortgage payments.  PMI is insurance that allows lenders to safely accept a lower down payment than it would normally require.   Basically, it is a financial guaranty that protects the lender from losses in the event that you would default on the loan.  

On the other hand, if you don’t have 20% to put down, you can still buy a home with PMI.  As long as you have a conventional mortgage, once your loan is paid down to 78% of the home value the PMI will automatically drop off. 

Start making a list of what you do and don’t want in a home, similar to what you see on all those home buying TV shows.  This is an investment – and a pretty expensive one!  Keep in mind what you can and cannot change in a home.  You can always remodel the kitchen or put in hardwood floors but you can’t change the neighborhood or make the lot bigger. 

We’d be glad to help from start to finish on making your first home your dream home.   Call or make an appointment to talk to a loan officer to go over your finances or apply for a mortgage.  And once you’re in your home, we can even help you turn your house into your dream home by financing your remodel!  

Post by: Sara D

Image courtesy of phanlop88/ FreeDigitalPhotos.net

Home Equity Loan vs. Home Equity Line of Credit...what's the difference??

Both products allow you to borrow money using the equity you have in your home as collateral.

With a home equity loan, you receive a lump sum of money at closing. You are then required to make monthly payments on the loan. You will not be able to draw fund from the loan again.  Since the funds are disbursed in full at the closing, your monthly payments will be fixed.   Horizon Community Credit Union's home equity loans are adjustable rate loans, with the rate adjusting annually based on the terms spelled out in your loan.  This can impact your monthly payment amount some, but generally it's not a large change.

The other way to borrow against your home’s equity is with a home equity line of credit (HELOC). This works more like a credit card – you have a credit limit, and you only pay on the funds you draw out. Monthly payments are 1% or 2% of the outstanding balance on the line.  Much like a credit card, you can draw on the line multiple times.  Horizon Community Credit Union's HELOCs are adjustable rate loans, with the rate adjusting annually based on the terms spelled out in your loan.

On both products you can borrow up to 80% of the appraised value of your home. For example, if your home is valued at $200,000 with a mortgage of $100,000, you would be able to apply for a home equity loan in the amount $60,000.

What could you use the equity in your home for??
Debt consolidation
Home Improvement
College tuition
Autos, motorcycle, Recreational vehicles
Vacation

Post by: Kelly B

Consider this with your next auto loan...

Insurance is one of those things – you kind of have to buy it, and you hope you never need to use it. But the right coverage is important! Are you protected?

Here are a few tidbits for you to consider:

• Automobiles are expensive.
• It’s easy to end up owing more than the vehicle’s value if you can’t put money down on a car; if you choose finance tax, title and license; if you get less than you owe on a trade-in; or if you buy a new car (due to the immediate depreciation). 
• You are “upside down” on your vehicle if you owe more than what the vehicle is actually worth. 
• Accidents happen – over 5 million car accidents occur each year. A
• One in seven car accidents (about 14%) will result the total loss of the vehicle. B
• In a total loss situation, the insurance company will reimburse you for the estimated value of the vehicle at the time of the loss.
• If your insurance payout doesn’t cover your full loan balance because you owe more than your car is worth, YOU are responsible for the difference, even though you don’t have the car anymore. 
• Horizon Community Credit Union’s Guaranteed Asset Protection (GAP) can keep you out of this predicament by covering the “gap” between what you owe and what the car is worth. 
• GAP is very affordable, and the premium is fully refundable within 90 days if you change your mind and decide to cancel coverage.
• You can enroll in coverage when you apply for your vehicle loan and the cost can be rolled into your loan amount and monthly payment. 
• A loan officer can give you more information with just a quick phone call! (920) 433-0122

Your primary insurance will protect the vehicle itself, but what it protecting you? If something happens to your car and it ends up being totaled, that alone is a traumatic experience. Having a loan balance left to pay makes things even worse. We can minimize the angst by making sure your loan balance will be completely taken care of. It’s a small investment that will be a HUGE benefit if something ever happened.

A Rocky Mountain Insurance Information Association. U. S. Auto Theft Statistics & Cost of Auto Crashes and Statistics. Copyright 2014. http://www.rmiia.org/index.asp

B AutoTrader.com. Crash Course for Coping With a Totaled Car. Copyright 2014. http://www.autotrader.com/research/article/car-news/168401/crash-course-for-coping-with-a-totaled-car.jsp

Post by: Erin S

How do you know if you're getting a good price on a car?

You’re at a car dealership and you find a vehicle that you like, but you’re not sure if it’s worth what they are asking for. What do you do? Call your credit union! Horizon Community Credit Union has a client log-in with NADA (National Automobile Dealers Association). Just supply us with the VIN# for the vehicle, year, make and model and we can bring up the value in a couple of minutes. Why NADA? NADA delivers monthly trade-in, loan and retail values to give us an idea what the vehicle is really worth. Wonder what value to use? At HCCU we will determine your vehicles value by looking at the clean loan value because it figures in the depreciation (decrease in value over time) of the vehicle. We can also give you values if you’re looking to sell your vehicle or use it as a trade-in. Call us today to get your value!

Post by: Katie B

Demystifying Your Credit Score

So everyone talks about credit scores, but does anyone really know what goes into a credit score or what to do to raise their score?  Most people don’t really know, even if they think they do.  You don’t get a high credit score simply by paying your bills on time as many people think (although that does help).  There are actually a lot of things that are considered when compiling a score.  Take a look at the pretty graph below:

The importance of each category will vary for each person depending on their overall credit picture.  That means that someone just out of high school may not have as much emphasis put on the payment history category as someone who has had loans and other credit for years.  As that credit picture changes, so does the importance of each category.  Really clarifies things for you, doesn't it? 

While credit score does play a part in whether or not you will be approved for a loan, it isn't the only thing that lenders look at, so if your score isn't ideal that doesn't mean you can’t get a loan.  Your score can affect the interest rate you pay on your loans though, so it’s a good idea to know your score and take steps to improve it. 

Even though how your score is actually calculated may still be a bit confusing, knowing more about what goes into it will help you make good decisions in the future.  Here are a few simple things that you can do to improve your credit and score: 

1.   Take a look at your credit report.  There are a variety of websites you can use.  At www.annualcreditreport.com you can get a free report from each of the 3 bureaus annually, and if you find something on your report that isn't correct, they have information there to help you dispute it (not only that, but they have a TON of helpful info if you’d like to find out more about credit and credit scores).  When looking at other sites for free credit reports, watch for sites that make it appear to be free but actually only offer a free trial period.

2.  Make your payments on time.  To help you do that, set up automatic payments so that you don’t have to remember each month.

3.    Do things in moderation.  That means don’t max out your credit cards or other lines of credit.  Having only one card that is to its limit is not better than having 2 cards with smaller balances on each one, so keep your balances low on revolving debt (like credit cards).  Closing a bunch of cards or opening a bunch of cards isn’t going to help either.  Basically, don’t do anything drastic.

Post by: Cari J

Loan? Piece of cake.

So you need a loan. Now what? We realize the process can be a bit intimidating, and that you probably have questions. How do you get things started? What information do you need to give us? How long it will take to get approved? We want to help you through that! While the information needed and the time it takes varies some depending on the type of loan, having as many of the loan details as possible beforehand can definitely get you a decision and get you the money you need a lot faster.

For many people, the most convenient way to get started is to complete an application online. This gives us most of the information we need for the loan, and also gives us the OK to run your credit report to get the process rolling. If face-to-face is more your style, give us a quick call to schedule an appointment. That way the meeting is not rushed, and you know that a loan officer will have enough time to chat with you, take your application, and answer your questions.

Here’s the information you need to give us:

• Your personal info (name, address, date of birth, social security number etc.). And if you’re married, we will need the same info about your spouse even if he/she is not signing on the loan. 
• How much money you need, and what you need it for. Or if you’re refinancing a loan from somewhere else, your payoff amount on that loan. 
• How much you pay for your mortgage or rent monthly. 
• How much money you make and documentation (2 recent pay stubs or tax returns) for you, any cosigners, and your spouse (again, just if you’re married even if your spouse isn't signing on the loan). 
• Information about what you’re planning on buying with the loan funds (if applicable). 
• Information on what you are using to secure the loan, also referred to as collateral. This may be what you are purchasing, or may be something you already own. By having collateral securing the loan your interest rate typically decreases, sometimes significantly. 

Once we have all this information, we are able to process your application and get you a decision. At Horizon Community Credit Union, we review and decision all of our loans locally! Because someone within the CU or on the board of directors is the making the decision, we are committed to getting back to you as quickly as possible, often the same day for consumer loans! While our decision-making is also quick for real estate loans, there are more things that are required, such as an appraisal and title insurance. Closing times for real estate loans from start to finish are typically 30-45 days.

It’s really easy, we promise! So have you been thinking about making a purchase? Need a loan? Start an application today at http://www.horizonccu.com/loans.php or contact a loan officer at 920-433-0122! We look forward to helping you achieve financial success!

Post by: Katie B

High Score!!

Your credit score impacts loan rates, insurance rates, even whether or not you are approved for a cell phone.   Here are some tips that will help with building and maintaining a credit score that will increase your chances for approval and make you eligible for the best rates possible.

Make payments on time.  ALWAYS.  Your payment history has the biggest impact on your score. Make sure your credit card balances are well under the limits. You’ll be scored favorably if you keep outstanding balances below 30% of your total credit limit. Keep accounts open for as long as possible, especially if doing so is cost-free. Don’t open too many new accounts all at once. This lowers your average account age.  Have a good mix of types of credit: auto loans, mortgage loans, and credit cards.  By following these simple tips you can increase your credit score and take advantage of lower rates – saving you money!

Post by: Kelly B

Let's hit the road!

Spring is FINALLY here!  After being cooped up all winter don’t you just want to hit the road and let the wind whip through your hair? 

Whether that means on a motorcycle, ATV, or boat, in a convertible, or an RV (does the wind actually whip through your hair in an RV?).  Well, whatever it is, we can help out!  We can do loans for just about any kind of vehicle, plus we have great rates and flexible terms to make sure that it will work with your budget. 

If you’re thinking about buying, or if you have a loan somewhere else that you are paying too much on, let us take a look and see what we can do for you.  Check us out online at www.horizonccu.com or give us a call at (920) 433-0122.