SafeAmerica Credit Union

refinance

• By Kevin Alvarez

Here’s How An Auto Refinance Can Save You Money On Your Monthly Payment!

Did you know an Auto Refinance can provide instant savings on your monthly car payment? Maybe you already knew that? Either way, read through to see if there is something more you can add to your own financial strategy!

Here's an example of what an auto refinance is:

You pay off your auto loan balance from one lender and transfer the balance to another lender with a better rate and/or term.  For example, you have an auto loan with an APR of 7% and refinance with another lender to a new lower rate of 3%. The 4% drop in interest will provide you with a new lower monthly payment.

When it's best to refinance:

There are multiple opportunities in which it makes sense to refinance your auto loan. They are:

  • Pay less in interest - If you find a lower rate than what you’re currently paying, you could save in the amount of interest you pay over the life of the loan.
  • Lower payment - If you’re looking for a lower payment, a reduced rate and/or term extension could help.
  • Shortened term - If you’re looking to pay off your loan earlier and can afford the payments, a refinance can help direct that money toward principle while paying less in interest.

The cons to refinancing:

When making any financial decision, it’s always best to weigh the pros and cons of each situation.  When refinancing your auto loan, the option to extend your repayment period will allow for a lower monthly payment but it also extends the amount of interest owed. In general, you will pay more in interest over the life of the loan, even if your payments are smaller.  You can also risk owing more than the car is worth if you extend your term too long.  Use a financial calculator to compare your options.

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When deciding if a refinance is right for you, have a clear goal in mind.  Are you looking to reduce your payment, pay your loan off sooner, or maybe both!  You have options.  Do your research to find what other financial institutions have to offer; lower rates, no fees, and term options that work for you.  Run the numbers and take advantage of the tools that are available to you as a member of SafeAmerica Credit Union.

Refinance with us

As a member of SafeAmerica Credit Union, you can refinance your auto loan from another financial institution and take advantage of exclusive member-only savings.

  1. Great rates
  2. Flexible terms
  3. No fees

Auto Refinance

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• By Lisa Eddy

Is It a Good Idea to Refinance My Auto Loan?

If you have an auto loan, you may want to consider the different ways refinancing may be able to save you some money.

How it works

When you refinance an auto loan, you’re essentially paying off your loan balance with one lender and transferring that balance to another lender who may be offering a better rate and/or term –  saving you some money over the life of your loan.

When it makes sense to refinance

There are a few good reasons to consider refinancing your auto loan.  For one, you may be able to find a lower rate somewhere else.  Perhaps interest rates have dropped since you first purchased your vehicle.  Shopping around for the best rate could pay off in the end.

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Another consideration is if your financial situation has improved.  Lenders use a number of factors to determine your rate, including your credit score and debt-to-income ratios. If either of these have improved, chances are you’ll qualify for a lower rate.  Remember, the better your credit score, the better loan rates you’ll receive!

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Even if you’re not able to get a better rate, you may be able to find a loan with a longer repayment period – hence reducing your monthly payments.  But, keep in mind that extending your repayment period also means extending the amount of interest you pay.  In general, you’ll pay more in interest over the life of the loan, even if your payments are smaller.

Be smart and do your homework!  Shop around for the best rates and terms, check to see if the lender charges any fees to refinance your loan, and make sure you have enough equity in your vehicle – is it almost paid off, old, or does it have a lot of miles?  You may want to hold off if any of these apply to you.

It’s always good to weigh the pros and cons of each situation. The same goes with refinancing your car.  Check around for special offers sometimes offered by lenders in order to draw your interest. Credit Unions tend to offer incentives to bring your loan to them.  See what SafeAmerica Credit Union has to offer.  Learn more.

Refinance with SafeAmerica

• By Lisa Eddy

Paying for College: Dealing With the Student Loan Crunch

Reportedly, student loan debt is at an all-time high and only continues to grow. It’s a sobering fact, especially considering that most students headed to college need some kind of financial assistance. The good news is you decrease your chance of taking on crippling debt or defaulting when you keep yourself informed about the ins and outs of student loans.

Finding financing

Due to the high cost of college tuition many families are unable to pay for college with savings alone. Traditionally, student loans have provided an important avenue in allowing students to be able to go to college. Even though paying for school may seem like a daunting task, there are several steps you can take to find financing:

  • Talk to your school’s financial aid office. Employees at financial aid offices are trained to help people find financing for school and have dealt with many others in the same situation as you. Ask them what lenders still offer student loans and what your other options for funding are.
  • Look for scholarships and grants. It is a good idea to look for scholarships and grants regardless of how easy it is for you to find student loans. Why borrow when you do not need to? High school guidance counselors and college financial aid offices usually have information on available scholarships and grants. Information is also available at www.finaid.org.
  • Consider a home equity line of credit or loan. For parents with a significant amount of equity in their homes this may be a good way to help finance college. Interest rates are usually fairly low, and the interest is tax deductible as well. However, it is important for those considering this option to remember that home equity lines and loans are secured debt. You could lose your home if you do not make payments.
  • Stay informed. It seems that the laws surrounding student loans change every few years. Watching or reading relevant stories in the media will help you to be better aware of what your options are and what new opportunities are created.

Preparing for the future

For parents, the current student loan crunch demonstrates why it is a good idea to save for college. Even if student loans are readily available when your children go to college, saving allows them to rely less on loans, which they will need to pay back after they graduate. If you are saving for college take advantage of available tax-saving vehicles.

For example, 529 Plans, Coverdell Educational Savings Accounts, and Series EE Savings Bonds (issued by the Department of the Treasury) allow you to invest savings for college and not pay taxes on earnings, as long as the funds are used for qualified education expenses.

College tuition is high, and paying for college is often not an easy task. However, there are several options for funding available, and being well informed can help you prepare for and manage this cost.

SafeAmerica Credit Union offers private student loans.  Let us finance your education or refinance your current student loan and save money!


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• By Lisa Eddy

Mortgage Loans Aren’t One-Size-Fits-All

Determining the best mortgage loan option is tough. You have to select a lender, choose between fixed and adjustable, and most importantly, choose the term in which you want and can pay for.

A 30 year fixed mortgage loan is usually typical but, there are other options. You can choose to pay off your loan faster with terms such as 20, 15 and even 10 year loans.

But, what are some of the advantages of shorter term loans?

  • Pay off your home faster. The biggest advantage of a shorter term mortgage is that it can help you pay off your home much faster than the typical 30-year fixed mortgage. Your payment is significantly higher so you want to make sure that you can safely afford it before committing to a loan of this type.
  • Pay less in interest. You'll pay significantly less interest over time not only because the interest rate is lower than a 30-year fixed loan, but also because you're borrowing the money for fewer years.
  • Build equity faster. Shorter term loans can build equity at a much faster pace than traditional 30 year loans. It minimizes the interest you pay during the term of the mortgage and your interest rate should be lower.

A shorter term home loan is the right mortgage for people who want to pay off their mortgage as quickly as possible and who have the income to safely do it.

Savings Example Over The Life of The Loan

Savings Example

What are the disadvantages of shorter term fixed mortgages?

One disadvantage of shorter terms is that the monthly payment is much higher than a loan with a longer term. Because the monthly payment is so much higher, it could lower the amount of mortgage you may be able to afford.

Buying or refinancing a home is a big decision. No matter what you decide, it's important to know your options and choose what's best for you.

Click here to learn more about SafeAmerica Credit Unions home buying and refinancing options or give us a call at (800) 972-0999.


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