Month: September 2024
Beware Back to School Scams
Whether you’re a college student prepping for the fall semester, a high school student getting ready for a new school year or the parent of a student of any age, beware these trending back-to-school scams!
The student tax scam
In this scam, a crook posing as the IRS calls a college-bound student claiming they didn’t pay the student tax. If it is not paid up and pronto, the “agent” says, the student will not be allowed to attend school. They may even threaten imprisonment.
Don’t get scammed! First, know that the “student tax” doesn’t exist. Second, the IRS will never initiate contact with a taxpayer through a phone call. Finally, the IRS will never demand payment through a prepaid debit card or wire transfer, which is a common scammer ploy.
Scholarship scams
The scholarship scam cons students and parents into paying money for government student loans or financial aid, or by promising a scholarship in exchange for a fee. Follow these rules to stay safe:
- Never pay to apply for a government student loan or financial aid.
- There’s no way to guarantee a scholarship or grant. If a company promises to get you approved for either one, it’s a scam.
- There is generally no fee necessary to receive a scholarship.
School supply giveaways and freebies
Back-to-school shopping can cost a bundle. Messages promising a free back-to-school shopping spree can be welcomed, if they’re legit. Unfortunately, they rarely are.
Back-to-school giveaway scams ask the victim to visit a website to provide their email address for claiming their prize. The victim is then rewarded with an endless stream of emails, texts, robocalls and more from the company that now has their information, with no giveaway in sight. In some cases, the scammer may demand a “processing fee” before the victim can claim their prize.
Protecting yourself from a giveaway scam is easy by remembering that, if it sounds too good to be true, it probably is. Also, legitimate contests will rarely select a winner out of thin air; you’ll have to enter it first by providing your email address. They are also not likely to make you give up lots of info before claiming your prize. Finally, there is generally no payment necessary for claiming an authentic prize.
Follow the tips outlined above this back-to-school season and stay safe!
The Anatomy of a Mortgage Payment
Trying to understand your mortgage payment can be like trying to decode a secret language. At the very least, you may be wondering what all the lingo means.
No worries; we can help! Let’s take a look at the different components of your mortgage payment, explain how it’s calculated and offer tips for managing payments effectively.
Principal
The principal of your mortgage is the amount of money you borrow from your lender when buying your home. A portion of each payment goes toward paying down this principal. In the early years of your mortgage, a smaller portion of your payment goes toward the principal while most goes toward interest. As time goes on, though, this balance shifts, and more of your payment goes toward principal.
Interest
Interest is the cost of borrowing money from your lender and is calculated on the outstanding principal balance. It’s typically expressed as an annual percentage rate (APR). The interest rate you get depends on several factors, including your credit score, your down payment amount and current market. There are two main types of interest rates: fixed and variable. A fixed-rate mortgage keeps the same interest rate for the life of the loan, while a variable-rate mortgage can change over time based on market conditions.
Property taxes
Property taxes are levied by local governments and are based on the assessed value of your property. These taxes fund essential services in your community, like schools, police and fire departments and road maintenance. The amount of property taxes you’ll pay varies widely by location.
Homeowners insurance
Homeowners insurance protects your property and belongings from damage or loss due to events like fires, storms and theft. Most lenders require borrowers to carry homeowners insurance, so your choice will not be whether to get insurance, but how much coverage to purchase.
Private mortgage insurance
If your down payment is less than 20% of the home’s purchase price, your lender will likely require you to carry private mortgage insurance (PMI), which protects the lender in case you default on your loan. The cost of PMI varies, but typically ranges from 0.3% to 1.5% of the original loan amount per year. Once you have built up 20% equity in your home, you can usually request to cancel PMI.
Tips for managing mortgage payments
Budget for your payments: Create a budget that includes your mortgage payment and other homeownership costs.
Refinancing: If interest rates have dropped since you got your mortgage, consider refinancing. Refinancing can lower your interest rate and/or monthly payment. It’s also a way to switch from a variable to a fixed-rate mortgage.
Extra payments: Making extra payments toward your principal can help you pay off your mortgage faster and save on interest paid over the life of the loan.
Understanding the anatomy of a mortgage payment is essential for managing your finances. Use this guide to learn about the components of your mortgage and how to manage your payments effectively.
Rogers named to High Point Federal Credit Union’s Board of Directors.
Olean, NY – High Point Federal Credit Union is pleased to announce the appointment of Dominic Rogers to the organization’s Board of Directors.
Bringing a wealth of expertise from the IT industry, Rogers will contribute significantly to High Point as he begins his new role as a board member.
Currently, Rogers holds the position of Vice President and Director of IT at Cutco Corporation, where he has dedicated over 30 years. His previous board roles include the Renodin Foundation, Jamestown Community College Foundation, and Universal Primary Care. He is also a graduate of Leadership Cattaraugus.
“We are excited to leverage Dominic’s expertise and his knowledge and deep connections within our communities,” said High Point FCU Board Chair Michele Pancio. “I am grateful for all of our board members’ commitment to fulfilling High Point’s mission to provide personal service and affordable products that meet member’s financial needs throughout life’s journey.”
Serving as member advocates, High Point FCU’s volunteer Board of Directors work closely with the credit union’s leadership team to set policy, monitor risk and guide the execution of the organization’s strategic plan.
Rogers is an alumnus of Jamestown Community College, the University of Pittsburgh at Bradford, and St. Bonaventure University. He resides in Olean with his wife, Jennifer. They have two children, Luciano and Mia.