The Advantages and Disadvantages of Refinancing Your Mortgage

Homeowners refinance for a variety of reasons, some of which include opting for lower interest rates as they become available, taking advantage of built-up equity in their home by borrowing additional amounts, and moving from an adjustable mortgage to a fixed rate mortgage. There’s a variety of refinancing options, but it can be hard to know all the pros and cons of refinancing before you commit. Take a look at some advantages and disadvantages of refinancing.

Disadvantages

When weighing the disadvantages of refinancing your mortgage, consider what you will ultimately gain in savings from refinancing. How much will you be spending in fees, closing costs, penalties, and paying points? Will it be worth it to move forward and refinance? Will you be paying more in higher interest rates if you move from a fixed-rate mortgage to an adjustable rate mortgage?

Another thing to consider is that depending on the term and length of a new loan, it may take much longer to pay off your home than it may under your current plan. Equity may make a difference in how you consider refinancing. Taking equity out of the house may mean you owe significantly more money. Taking cash out may decrease equity in your home, which can trigger a few additional maneuvers on your part—one of which could require you to carry private mortgage insurance (PMI).

Advantages

While there can be many disadvantages that may make you hesitate when it comes to refinancing, there can be many advantages that can make refinancing the best option for your financial future.

Refinancing can help you better define the terms of your payments. It can shorten repayment time, reduce your interest rate, and lower monthly payments. Taking advantage of low rates could improve your loan period and grant you more leverage in negotiating. Greater flexibility means improving your chances of obtaining a favorable deal.

Consolidation of loans can also streamline your repayment plan, and make your repayment plan more manageable. Another advantage of refinancing your mortgage is that you could potentially avoid the risk of rising interest rates if you move from an adjustable to a fixed-rate mortgage.

Before you decide on or against refinancing your mortgage, do your research to find the best fit for your finances. Speak to a professional financial expert to help you weigh the pros and cons of refinancing your mortgage. Contact one of our specialists at Financial One Credit Union in order to make great strides in your financial security today.

Win Money by Saving Money

Exciting news if you’re looking to save money in 2016: Financial One Credit Union will be taking part in WINcentive Savings, an incentive program that repays you for saving!

According to a survey done by bankrate.com in June of 2015, nearly 78% of Americans don’t have enough savings to cover them for six months if they were to lose their job. While this may be shocking, it’s even more disturbing that 29% of Americans don’t even have a saving account. Financial One is hoping to reverse this trend by partnering with WINcentive Savings and rewarding members for saving with cash prizes.

So how does WINcentive work?  

Think of this program like a lottery, only you can never lose. For every $25 you deposit into your WINcentive capable savings account, you will be entered into a drawing to win $100 monthly, $500 quarterly and $5,000 annually. Four entries per month are permitted; that means if you deposit $25 per week, not only will you have been entered to win the prize money, but you would have also saved $100 - a complete win-win. Financial One is one of 14 credit unions in Minnesota taking part in this incentive program that started on January 1st. Visit mncun.org for more information on the WINcentive program.

Not sure how you want to save?

Financial One not only has a well-informed staff that can help you figure out what’s important to you, but we also offer a variety of savings accounts to meet your individual needs. Individual Retirement Accounts (IRAs) are ideal for planning for the future, and Health Savings Accounts are perfect for members who want to set aside funds for medical expenses before they arise. These are just a few of the accounts offered; you can learn about more ways to save on our website.

For more information contact us on the web, or give us a call at (763) 404-7600.  The first WINcentive Savings drawing for January deposits begin in February, so now is the perfect time to start saving!

Getting Back on Track After Holiday Spending

With the hustle and bustle of the holidays, many things can get away from you - especially your spending. Everyone wants to be generous with their gift-giving, but this can really put a dent in your savings. If you have found yourself in this situation, we have a few simple tips to dig yourself out of the holiday hole and get your finances back on track.  

Reevaluate Your Finances

The best place to start is by reevaluating your finances.Take a look and categorize the things you bought during the holidays. This includes gifts, food, travel, decor items, and any other added expenses. Be sure to look at where the money came from, either savings, checking or credit cards. Take a look at your monthly income and compare that to your spending. Doing this will allow you to see how much money you can put towards paying off your debt. By reacquainting yourself with your accounts, you will have a better idea of how much debt you have and you will be able to give yourself an accurate timeframe on paying it all back.

Cut Costs Where You Can

This may sound obvious, but it really is the best way to save money. Since you have already evaluated your finances, you should have a pretty good understanding of where you are spending your money. Even cutting back on small things can really help. For example, make your own coffee rather than buying it, pack a lunch rather than going out, or rent a movie rather than going to the theater. All of these little things can add up to big savings which you can use to pay off your debt or to rebuild your savings account.

Create a Payment Plan

If you want to get out of debt quickly, you’ll need a plan. According to Ann Walter of the Consumer Credit Counseling Service (CCCS), it should ideally take you no more than three months, however, each person is different. There are a variety of ways to help figure out how much to pay off each month. First, try our financial calculator to help you come up with a plan. You can also contact a consultant for help. Financial One CU has a skilled staff that can help you come up with the perfect payment plan to help get you out of the holiday hole.

If you are finding it hard to stay within your budget, try to use cash instead of a card. This will give you a tangible way to stay on budget; once the cash is gone, you can't spend any more.

If you are serious about getting out of the holiday hole, we recommend asking a professional. Our representatives can answer all of your questions and help you find a payment plan that works best with your budget. Although it may seem hard to save after spending so much on the holidays, we can help guide you through the process and start your 2016 off on the right foot.

Alternative Valentine's Day Ideas That Won't Break The Bank

Valentine’s Day - that wonderful day filled with chocolate, gifts and celebrating the love between you and your significant other. However, Valentine's day can also be expensive. A fancy dinner, a nice gift (traditionally flowers or jewelry) and possibly a new outfit for a fancy dinner. For those of us on a budget, this day of love can turn into a nightmare. It doesn’t have to be that way. We have a few ideas that you and your significant other can enjoy the day without breaking the bank.

Dinner for Two

Skip the stuffy, undoubtedly packed restaurant and make dinner together at home. Although this may seem obvious and bland, cooking together is a great way to connect and you won’t have to wait an hour to get a table. Also, cooking at home is less expensive. On average a chicken dinner out is about $14-$20 not including drinks, whereas the same dish cooked at home is about $6-$10 and you can take as long as you want to eat since there isn’t a waiter trying to turn over tables.

Creative Gifts

Okay, so dinner is planned - now about that gift… This is where you will have to get creative but if you don’t want to drop a large amount of money on one item, give them the gift of yourself. Make a coupon book for your significant other filled with fun coupons like “You win this fight” or “I’ll do the dishes.” This is a great gift for both men and women, plus there are many different websites where you can print the perfect customized coupons for your partner.

Thinking of You...

On Valentine’s Day, a lot of people have flowers sent to their special someone at their work. However, flowers and delivery are expensive. Here’s an alternative: Plan ahead, write a heartfelt letter to your love and mail it to them. Most people only get work-related mail at their office so this will be just as special and will let them know that you are thinking about them. Also, sending a letter is less than a dollar.

Tradition on a Budget

Still like the idea of a bouquet for Valentine’s Day? A normal bouquet of roses runs about $50, though can be much higher during valentine’s day, and are even more if they come with a vase. Our suggestion - look into alternative bouquets. Dollar stores offer a wide variety of balloons for, you guessed it, a dollar. These balloon bouquets are great and you are able to find the balloons to fit your partner.

If you are still insistent on buying the traditional chocolates and flowers, wait a day. Most stores have huge after Valentine’s Day deals that you can take advantage of. So talk with your love about postponing celebrating.

The most important thing when planning your alternative Valentine’s Day is to remember that the day is about celebrating the love you have for each other in your own special way. If you need more help with figuring out how much you can afford this Valentine's Day give Financial One a call at (763) 404-7600 or check out our website; we can help set you up with a budget and get you on the right track.

Create Purchase Power with Financial One

Imagine this: You've just graduated college and put in a few resumes. You feel anxious about hearing back from your new potential employers, and then... yes! You get a call to schedule an interview for the job you've had your eye on! This is PERFECT! The only problem is, you've been so busy studying for finals and working to pay for school that you haven’t been thinking about or saving for clothes shopping. You have no professional clothes whatsoever, and this is an event that requires more than yoga pants. Problem solved; you apply for Financial One’s Rewards Visa Credit Card and get approved! Now you can shop online or in store with no issue.

With Financial One’s Rewards Visa Card, there are no annual fees or balance transfer fees. Also, there are no fees for cash advances, so while you’re out, go ahead and borrow a few extra dollars to treat yourself to lunch. Financial One offers competitive fixed rates so there’s no time wasted comparing them to all the other cards sending you offer after offer.

In addition to the awesome credit offerings, this card will pay you for shopping! You will earn one point per every dollar spent. There is no limit to the amount of points you can earn, and they never expire. You also have the opportunity to earn bonus points by shopping with participating retailers. Earn 2x, 3x, 4x, or more points by shopping at places you already do! Rewards can also be redeemed for travel expenses such as airfare, hotels or even a cruise! Or you can use your points to get gift cards from Best Buy, Macy’s or Amazon. This card also offers easy management of payments. You can pay your bill 24/7 online!

With Financial One Credit Union’s Rewards Visa Credit Card, you find a solution to your financial setback and gain Purchase Power!

Financial Literacy Month

April is Financial Literacy Month! “What does that mean to me?” you may ask. Well, it means it is a time to increase your financial knowledge and to work to understand your behaviors when it comes to your finances. Here are some tips to help you create financial literacy and independence.   

Educate Yourself Early  

Establishing and maintaining healthy and strong financial habits as early as you can (not as the result of major financial disaster) will help you go far in the long run. The foundation of financial literacy includes knowing how to save efficiently, establishing an excellent credit score, learning how to budget, and understanding your financial behavior in order to continually better it. Staying literate means consistently checking your bank balance, debt levels, and behavior.

 

Understand Behavior  

Stick to a budget. Research before you buy. Have an emergency savings fund. Use coupons. While all these tips are important to follow, it’s important for your financial literacy that you understand your financial behavior.  A good way to analyze your own finances is to track your spending. An easy way to do this is to keep spreadsheets of what you spend money on and how often you spend. Also, work to understand your relationship with money: what triggers your spending, and what helps you to control your urge to spend.   

What You Should Save  

The concept of building your savings is exceptionally important. Use the 50-20-30 rule. This means separate your monthly budget as follows: 50 percent of your monthly earnings goes toward essentials (mortgage, rent, groceries), 30 percent goes toward your lifestyle spending, and 20 percent goes towards your financial priorities (debt repayments, retirement contributions, and your savings). You may find a need to tweak the ratio of the 50-20-30 rule, depending on your personal situation, but allocating and understanding where every part of your paycheck goes is extremely important.     

Know The Meaning of Financial Independence Being independent and financially literate before you bring another person into the picture is important to protecting your financial identity. Getting married or deciding to share mutual accounts means combining two financial personalities and habits. Create transparency with your partner by asking questions such as: how much debt are you bringing into the relationship, and how do you approach your finances. Whatever your individual histories are, make sure you have the financial literacy conversation with your partner before committing.   

If you are looking to bring kids into the picture, be the role model for their future good financial habits by showing, not telling as you go. Let your kids help look for deals at the grocery store. Have a clear change jar in the living room that they can see on a regular basis. Let them earn an allowance with hard work. Help them save for a new bike or their first car. All these behaviors will help them be financially literate early in their life as well as help to hold you accountable for your own habits.

   

Being financially literate will help you make the most of your spending habits and will help you reach your financial goals. Remember, you are in control. Manage your money, don’t let it manage you!

Tips When Buying A Used Car

Buying a used car can save you a ton of money on your next vehicle. But with that comes risk as well. Minimize your risk by taking a look at these 5 easy steps on how to locate, price and negotiate.

Build a List of Cars You Want 

Avoid going into the process with only one car in mind. Put together a list of 3-5 makes and models that have you interested. Remain flexible, and you will have the best chance to find value in your price range.

Check the History of the Vehicle 

By using the vehicle identification number (VIN) and license plate, you can access history reports about any car you would like. These reports often have information that is crucial to the buying process. If the report is negative, try looking for a completely different vehicle.

Give it a Test Drive 

Trying out the car in person is your best bet to seeing if it is in good condition. It’s also your chance to see if it fits you right. Is it easy to get in and out? Is there enough room? How about the visibility? These are all vital to the final purchase of the vehicle

Negotiate, Negotiate, Negotiate 

People usually tense up when it comes to negotiation. Head into the conversation relaxed and make sure you are comfortable with the seller. Start with a low offer, but make sure it’s not too outrageous. Make sure you know exactly how high you will go before talks begin. Be patient, but never be afraid to walk out.

Close the Deal 

Before you make the final purchase, keep in mind that you have just bought a used car “as is”. That means there are no promises or guarantees after the sale is finished. After you have completed the purchase make sure the old owner has transferred title and registration to you. Also, make sure you update your insurance policy as soon as possible.

Team up with Financial One Credit Union to get a great interest rate and repayment options on your next used car loan! We provide helpful, member-focused service throughout the entire process.

Wherever you are, wherever you're going, we're here to get you there!

DIY Holiday Gift Ideas

Like many of us, you’re probably feeling the holiday spirit this season. While it is supposed to fill you with cheer, it can sometimes leave your wallet empty. Keep the spirit of giving going this holiday season with these inspired DIY gifts. Easy to create and fun to give, the magic of Christmas generosity lives on with a budget that even Scrooge would be comfortable with.

Paperwhites in Mason Jars

Happy little growers just add water.

You’ll need:

-Paper white bulbs

-Mason jars

-Colorful stones or glass

Your paperwhite bulb will not need chilling in order to bloom, and will grow easily without soil. You can find the bulbs at most gardening stores or nurseries. Fill mason jar ¾ full with stones, and set paperwhite bulb on top of stones. Secure lid over the bulb, allowing bulb to stick out of lid. Add a decorative flare with pine trimmings, twine or ribbon, and attach a homemade instructions card.

Stylized Porcelain Mugs

For the coffee enthusiast, a pretty way to brighten any morning.

You’ll need:

-Porcelain mug

-Sharpie paint oil based markers or Decoart glass paint markers

-Oven

Wash mug and stencil on design with pencil, or using painters tape. Draw design with paint markers (we like metallic gold for polka dots or chevron designs) and bake at 350 degrees for 20 minutes to set paint. Allow to cool in oven. Voila! Mugs are dishwasher safe, but for best long term results, hand wash only.

Coffee Bean Soap 

A little bit of homemade luxury.

You’ll need:

-1 lb package melt and pour soap base

-Ground coffee beans

-Milk and honey fragrance oil (find at any craft store)

-Soap mold

Measure out how much soap base you will need, per soap mold instructions and cut soap base into cubes for melting purposes. Place soap in microwave safe bowl for melting and heat at 15 second intervals, stirring between each, until soap base is melted. Once melted (be sure not to overheat), quickly add in coffee grounds and stir, adding in fragrance oil and stirring (fragrance will come with amount directions). Pour soap into molds, nixing bubbles on the top of molds with a spritz of rubbing alcohol if needed. Soap will take 1-3 hours to harden. Pop out of molds and soap is ready for gifting!

His Favorite Beer Glasses 

Turn used bottles into treasured glasses.

You’ll need:

-Favorite beer bottles

-Acetone

-Small dish and rag

-Scrap string

-Sandpaper

Fill sink with cold tap water and handfuls of ice. In a small dish, pour enough acetone to soak your string. Cut a piece of string long enough to wrap bottle 5-6 times around, and tightly wrap string around bottle where you want to separate the glass you’ll have from the top of the bottle. Tie a knot in the yarn and trim extra from ends; slip off of bottle and submerge in acetone. Slip soaked yarn back onto bottle where the cut will be made. Hold bottle horizontal over sink and light the string with lighter, rotating the bottle until flame burns out after about 30 seconds. Once flame burns out, submerge bottle and string in ice bath and the top should separate where the yarn was (if top does not come off, repeat process until bottle separates). Use sandpaper to smooth the edges, and you’ve got a guy-approved gift!

The holidays should be a season for spreading cheer and spending time with family and friends. Don’t let the financial strains of the season stop you from getting into the Holiday gift-giving spirit. From all of us at Financial One, we hope you have a safe Holiday season and a very happy New Year!

Making and Saving Money While Going to School

The best part about starting college? Newfound independence. One of the worst parts about

college? Feeling as if you never have any money.

With all the freedom of college comes the new responsibility of adulthood which is why it’s important to start practicing healthy financial habits of making and spending money. There are plenty of ways to do this without sacrificing study time or missing out a great college experience.

Online Habits Can Make You Money

Believe it or not, the time you spend procrastinating on Facebook, Twitter, and Instagram can earn you money and give you valuable writing experience. In fact, you could potentially earn $100 a month acting as a social media expert by hiring yourself out writing Facebook posts, Tweets, and blog posts for companies in need of social content. Or, with time and dedication, you can earn money by producing your own blog, although it may take a few years to develop your own personal brand.

Get Creative With Your Own Talents

Love knitting? Photography? Are you talented at transforming old thrift store finds into something new and wonderful? You’d be surprised at how selling your creation on sites like Etsy, Ebay, and Craigslist or at local craft shows can make you some quick cash!

Tutor

Are you a music student? Majoring in Chemistry? Or Latin perhaps? Offer lessons to other students or to the local community. This way, you get to make some dough while teaching others to do something you love and are already skilled in.

Purge

Being a student often means having limited space in a small dorm. It also means moving around a great deal. Why hold on to a bunch of things you don’t really need when you can sell them for much-needed cash? Secondhand shops typically accept gently used clothes for money or for store credit. Online sites like Amazon and Chegg often give you better deals on old textbooks than campus bookstores. Many colleges even have community Facebook groups where you can swap anything from last semester’s textbooks to old futons with other students on campus.

Part-time Jobs and Side Gigs

No job is too small. The same jobs you held in high school can still earn you money now; don’t overlook them. A part-time retail or restaurant job can bring in some cash and help you build character and discipline. Also, make sure to check out your campus’ work study options and research group opportunities for money.

Save Money, Stay Healthy

Craving a little physical activity? Take advantage of your campus athletic facility. Many Health/Fitness majors teach classes at part of an academic requirement, so consider learning from with your peers. If organized team sports are more your thing, join an intramural. Reluctant to leave your dorm? You can even stream many workouts on YouTube for free.

Affordable Entertainment

With access to thousands of shows, movie, and documentaries for free or for less than $10 a month though Netflix, Hulu, and soon HBOgo, paying for monthly cable and satellite fees make less and less sense. You can even split the cost of a subscription with your roommates to cut down even more on fees.

Track What You Spend

Free phone apps like Mint and Level Money help you keep tabs on what you spend at the grocery store, the mall, and restaurants. They make it nearly impossible for you to question where your money goes every month.

Learn How to Budget

It is never too soon to build a savings account or learn how to budget your income. Any money you receive from your parents, financial aid, and your job can be used for your savings. Figure out how much you should put towards your cell phone bill, towards going out, or towards your student loans every month. Setting these priorities now will help you build a stable financial future.

So there you have it - some solid, collegiate building blocks to set you on the right path. Have a particular strategy that helps you save your pennies? Leave us a comment and tell us about it!

KASASA This Holiday Season!

Thank you for being a member of Financial One Credit Union. With our recent rebrand we wanted to let our members know what’s new and what’s different! We decided to partner with BancVue, also known as KASASA. KASASA is an effort to fight against “big banks” and show people that banking should be free and you should be rewarded for having your money at our financial institution.

What is new with Financial One? We will now be offering high yield checking accounts that pay up to 2% APR, or a 4% cashback on purchases up to $20. You also have the option of an iTunes reward account that will allow you to earn up to $5 per month in iTunes or Amazon credits with a $20 sign up bonus, just for using your checking account.

Each account does have qualifiers: you must have e-statements and you must login to online banking at least once in a qualifying period (usually the 1st of the month thru the 29th or 30th depending on the month). You must also use your debit card at least 12 times within that same qualifying period.

What is different with Financial One? We have always offered free checking accounts to our members, but now you will also have the option to earn rewards! Members decide which reward program to be in based on the accounts mentioned above. In addition to the newly added reward accounts, we also have a new website which allows our members to access our products and services with greater ease than in the past. Also, with the new website, members and non-members can now open accounts online rather than having to come into the branch.

We hope you will enjoy the changes to Financial One Credit Union. If you have any questions about KASASA please do not hesitate to contact us.

Big Changes at Financial One Credit Union!

Thank you for being a member of Financial One Credit Union. With our recent rebrand we wanted to let our members know what’s new and what’s different! With the rebrand we decided to partner with BancVue, also known as KASASA! KASASA is an effort to fight against the “big banks” and show people that banking should be free and you should be rewarded for having your money at our financial institution.

What is new with Financial One? We will now be offering high yield checking accounts that pay up to 2% APR, or a 4% cash back on purchases up to $200, or an iTunes reward account that will allow you to earn up to $5 per month in iTunes or Amazon credits with a $20 sign up bonus, just for using your checking account.

Each account does have qualifiers! You must have e-statements and you must log in to online banking at least once in a qualifying period (usually the 1st of the month thru the 29th or 30th depending on the month) as well as use your debit card at least 12 times within that same qualifying period.

What is different with Financial One? We have always offered “free” checking accounts to our members, but now you will also have the option to earn rewards! Members need to decided to be in the accounts mentioned above. In addition to the newly added reward accounts, we also have a new website which allows our members to access our products and services much easier than it was in the past. Also, with the new website, members and non-members can now open accounts online rather than having to come into the branch!

We hope you will enjoy the changes to Financial One Credit Union. If you have any questions about KASASA please do not hesitate to contact us!

Financial One Credit Union : What We are All About!

Financial One is a member-owned and controlled financial cooperative dedicated to improving the financial well being of its members. We open arms to residents and businesses in Anoka County, Northeast Minneapolis and the City of Champlin.

In addition, we are honored to include members of the Disabled American Veterans (DAVMN) to Financial One. Since 1933, we have been working hard to provide the best in financial services to our members. We offer a comprehensive package of financial products, including deposit accounts, loans, business services, and other convenience services.

Americans should spend less and save more, but putting money aside for the future can be a major challenge. We are here to help. We offer several ways for you to save. The first step is opening up a Primary Savings Account. This account along with a $10 opening deposit, will make you a member of Financial One and allows you to apply for other products and services that Financial One has to offer. We like to keep it simple with one type of checking account that provides everything you need and you still have all the great features that you would expect. We offer free online and phone banking, free estimates e-statements, free bill pay, free VISA debit cards and unlimited check writing.

We also have an overdraft protection program. This can be linked to your savings and/or a line of credit, just in case you overdraft. We work hard to help you avoid overdrawing your checking account and being charged a fee. We want you to save money!

All of your accounts come with free online access; free 24/7 automated phone access through One Call and no hidden fees. You can open an account here now!

We are so much more than just savings and checking accounts. We also offer loans! We are here for your lending needs. We can help you build credit, buy your first car, consolidate debt, refinance your home and much more. We will always take the time to find the best solution for you when it comes to lending.

We offer loans for almost anything you could imagine. From Auto, ATV and RV to Student and debt consolidation. Whether you have an emergency, are looking to purchase something just out of reach, need help building credit or paying off debt, we are here to help! Enjoy flexible loan options, competitive rates and no annual or prepayment fees.

We are also partnered with Members One Insurance. If you are looking for affordable insurance that fits your life, it may be easier than you think. Let us help you save time and money when shopping for insurance. Jim Pehl, our agent with Members One Insurance can shop over a dozen different providers to find you the
best combination of price, coverage and service to meet your specific needs.

At the end of the day, it isn’t all about helping others manage their money. We also take pride in our community. We take part in many different community events and charities such as: Hops for Hunger, Taste of Blaine, Blaine Triathlon, Green Expo and much, much more!

Call, visit our website (link) or stop in today to find out more. We would love to have you as one of our members!