Abigail Siebert, Author at High Point FCU

The Hidden Costs of Buying a Home

Buying a home is a big milestone, but there are many hidden costs that can quickly add up, catching many first-time homebuyers by surprise. Here are some of the hidden costs of buying a home.

1. Home inspection

Cost: $300-$500

A home inspection isn’t always a required part of the homebuying process, but having your future home inspected by a professional can save you thousands of dollars in future repair costs by identifying problems before you close.

2. Appraisal fees

Cost: $300-$600

Most lenders require an appraisal to confirm that the home is worth the purchase price. If the appraisal comes in lower than the agreed purchase price, you may need to renegotiate the price or cover the difference out of pocket.

3. Closing costs

Cost: 2-5% of the home’s purchase price

Closing costs might be the most substantial hidden expense in the homebuying process. They include various fees, such as:

Loan origination fees. Lenders charge this fee to cover the administrative work that’s involved in processing your loan.
Title insurance and title search. Title insurance protects both you and the lender from potential ownership disputes. The title search is conducted to ensure there are no existing claims on the property.
Recording fees. Local governments charge these fees to make your ownership official in public records.
Escrow fees. An escrow company manages the transfer of funds and important documents between buyer and seller.

4. Property taxes

Cost: varies

Property taxes are an ongoing expense that can vary significantly depending on where you live. While most people understand they’ll pay property taxes, it’s easy to dismiss how much they can cost each year.

5. Private mortgage insurance (PMI)

Cost: 0.3-1.5% of the loan (annually)

If your down payment is less than 20% of the home’s purchase price, most lenders will require you to pay for private mortgage insurance (PMI). PMI protects the lender if you default on the loan, and it typically costs between 0.3% and 1.5% of the loan amount annually.

6. Homeowners insurance

Cost: $800-$1500 (annually)

Homeowners insurance is a necessary expense that protects you in the event of natural disasters, theft, or accidents. Many lenders require buyers to pay for the first year’s premium upfront at the time of closing.

7. Professional cleaning

Cost: $120-$325

Most sellers will deep-clean their home before putting it on the market, but they may not be as detailed when they actually move out. Real estate contracts generally require the home to be “broom-clean” before the seller moves, but this only means a very basic cleanup, with floors swept and trash removed. You may choose to have your home professionally cleaned and sanitized before you move in for a real, fresh start. Be sure to budget for this cost.

8. Immediate repairs

Cost: Varies

Unless you’re buying a new construction home, your new house will likely need some repairs. From a fresh coat of paint, to new window treatments and light fixtures, to replacing carpets and appliances, this can cost just a few hundred dollars to several thousand or more.

9. Moving

Cost: $500-$3000

The cost of moving itself is often overlooked, but can add up quickly, especially for long-distance moves or if you need professional movers. Moving expenses include packing supplies, rental trucks or a moving company. The cost of this can run anywhere from a few hundred to several thousands of dollars.

Don’t let the hidden costs of moving take you by surprise! Use our guide to be prepared for the true cost of moving.

Martin Luther King Jr. Day – CU Closed

Valentine’s Day

Presidents’ Day – CU Closed

8 Ways To Beat Holiday Stress

‘Tis the season to be merry-except sometimes, it’s not.

If you tend to feel stressed when the holidays roll around, here are eight tips to help turn that frown upside down.

1. Watch the buck

Nothing kills holiday cheer like a mountain of debt. Stick to a budget when doing your holiday shopping, and only spend what you can afford. Be extra careful not to overspend as the holidays draw near, and you’re feeling the pressure to finish your shopping in time.

2. Give back

According to the American Psychological Association, one of the best ways to reduce stress is to give back to the community.

Beat the stress by sharing holiday cheer with those who are less fortunate. You can bring some toys to the local hospital to brighten up a sick child’s holiday, volunteer at a soup kitchen or visit a nursing home and put a smile on the residents’ faces.

3. Stick to a schedule

Lack of quality sleep can make stress levels soar. You don’t need to follow your regular routine over the holidays, but it’s a good idea to keep some sort of schedule. Make sure you’re getting enough shut eye, and if a physical workout is part of your daily routine, don’t neglect it over the holidays.

4. Party smart

If you like to party, you can end up getting sick over the holidays. Do yourself a favor this year and watch what you imbibe. Enjoy a glass or two of your favorite alcoholic beverage but try to keep the drinking to a minimum. Similarly, it’s OK to break your diet over Christmas, but it’s best not to go overboard.

5. Delegate

If you’re hosting a large crowd this Christmas, all the extra work can bring your stress levels through the roof. Here’s the good news: You don’t have to do it all! There’s nothing wrong and there’s everything right with asking for help.

6. Take some “me” time

“Me” time is important, and in the chaos of the holidays, this need is often neglected. Consider getting a manicure, taking a solitary half-hour walk, or just locking yourself in your room for some peace and quiet. You’re not being an antisocial snob if you need your “me” time; you’re just being human.

7. Give up the guilt

If you tend to overanalyze every interaction you have with family and friends, you can really beat yourself up over the holidays, questioning everything you’ve said. Try to let go this season and give yourself a break.

8. Lower your expectations

A common cause for holiday stress is unrealistic expectations. It’s best not to build huge castles in the air and to keep your expectations to a minimum. If you don’t expect perfection, you won’t be struggling with mountains of disappointment this holiday.

Here’s wishing you a Merry Christmas from all of us here at High Point FCU.

HIGH POINT FCU DONATES $7,000 TO LOCAL FOOD PANTRIES

High Point FCU has donated $7,000 to support seven local food pantries in their field of membership during the holiday season. This donation reflects the credit union’s dedication to making a meaningful difference in the lives of their members and exemplifies their community-focused approach to business.

The Olean Food Pantry, Creekside Chapel, Portville Community Food Pantry, Harvest Field Outreach Center, CAC Food Pantry, Salvation Army of Bradford Food Pantry, and Hinsdale Ischua Food Pantry each received $1,000 donations.

“Our commitment to community remains steadfast,” said Rich Yeager, President & CEO. “Through our continued collaboration with local food pantries, we aim to create a lasting impact on those facing food insecurity, reinforcing the strength that comes from people helping people.”

High Point FCU is the 2^nd largest credit union in Western New York, with assets of over $400 million. The credit union currently serves over 20,000 members with four branch locations, 1201 Wayne Street and 206 North Clark Street in Olean, 180 West Main Street in Allegany, and 160 South Main Street in Portville.

Q&A: How Should I Fund my Holiday Expenses?

Q: I’ve listed all my anticipated expenses for the holiday season and I’m ready to hide under my covers until January. There’s so much to buy and so little money! How can I pay for my holiday expenses?

A: Yep, ‘tis the season to shop until you drop and your budget goes pop! But with proper planning, you can celebrate the holidays with your budget intact. Here are four ways you can pay for your holiday expenses along with the pros and cons of each.

1. Credit cards

Pros:

Convenient. Credit cards negate the need to carry cash around and are accepted at most retailers.
Rewards and cashback. Many credit cards offer rewards points, miles or cashback for your purchases.
Purchase protection. Most credit cards offer protection on big purchases so you can reverse a charge if a product turns out to be different than promised. Some cards also offer extended warranties, price matching and coverage for lost or damaged purchases.

Cons:

High interest rates. If you don’t pay off your balance each month, interest charges can pile up, making your holiday spending far more expensive.
Overspending. The ease of swiping a card makes it easy to overspend, especially during the holidays.
Debt accumulation. If you carry a balance into the new year, you might be stuck with lingering debt that could take months, or years, to pay off.

2. Holiday club accounts

Pros:

Encourages saving. Holiday clubs help you save for the holidays throughout the year.
No debt. Using money you’ve saved helps you avoid going into debt from holiday expenses.
Set it and forget it. You can set up your holiday club to take automatic monthly contributions from another account or payroll deposit throughout the year.

Cons:

Limited access. The funds are usually only accessible at the end of the year, which can be problematic if you don’t have other liquid savings to cover you in case of an emergency.

3. Unsecured/personal loan

Pros:

Fixed payments. Unsecured loans offer predictable monthly payments, which can make budgeting easier.
Low interest rates. Unsecured loans tend to have lower interest rates than credit cards.
No collateral needed. Most personal loans are unsecured, which means you don’t need to risk your home or car.

Cons:

Increased debt. Taking out an unsecured loan adds to your overall debt load.
Interest costs. While rates are lower than credit cards, you’ll still be paying interest on the money you borrow.
Eligibility requirements. You’ll likely need good credit to qualify for the best rates; some people may not qualify.
Temptation to overspend. Borrowing a large lump sum can tempt you to overspend.

4. Home Equity Loan (HEL) or Line of Credit (HELOC)

Pros:

Lower interest rates. Since these loans are secured by your home, they typically come with lower interest rates than credit cards or unsecured loans.
Large borrowing capacity. You can potentially borrow a significant amount of money.
Flexible terms. A HELOC allows you to borrow what you need, when you need it.

Cons:

Risk of losing your home. You risk losing the home if you default on the loan.
Fees and closing costs. HELOCs and HELs may have application fees, appraisal costs and more.
Long-term debt. Using home equity to fund short-term holiday expenses could result in carrying debt for years.

There are several ways to pay for your holiday expenses, and each option has its own benefits and drawbacks. Use our guide to choose the one that best suits your purposes.

Q&A: Should I Choose to Buy Now, Pay Later?

Q: When shopping online, I often see an option to Buy Now, Pay Later. Is BNPL a good option?

A: The option of paying for your purchase over time can seem attractive, but it’s important to understand how BNPL works and the potential disadvantages

What is buy now, pay later?

BNPL is a financing option that allows you to purchase items right away while breaking up the full cost into smaller, interest-free payments over time. Typically, BNPL plans charge no interest as long as payments are made on time.

What are the advantages of buy now, pay later?

The BNPL option has several advantages:

1. Interest-free payments

Unlike paying with a credit card, which typically means paying interest on the purchase, BNPL is an interest-free payment structure, as long as you stick to the payment plan.

2. Budget-friendly flexibility

BNPL provides flexibility, making expensive items more accessible to consumers who might not have the cash to pay in full upfront.

3. No credit check

Many BNPL services do not require a credit check for approval, which can be a relief for those with less-than-perfect credit or for those who want to avoid a hard inquiry that could lower their credit score.

4. Convenience

BNPL services, like Afterpay, Klarna and Affirm, are integrated into many popular retail websites. There’s no need for a lengthy application process, and your approval decision is usually instant.

What are the disadvantages of buy now, pay later?

The BNPL payment model is not without disadvantages. Some of these include:

1. Encourages impulse spending

Choosing the BNPL option can be an easy way to fall into the trap of overspending. Knowing that you don’t have to pay for the full amount immediately can tempt you into making purchases you might otherwise avoid.

2. Late fees and penalties

While BNPL is typically interest-free, many of these services charge fees for late or missed payments, which can make the total cost of your purchase significantly higher than expected.

3. No credit building

Unlike credit cards, which report to credit bureaus and can help you build credit when managed responsibly, BNPL services generally do not contribute to credit building.

4. Limited purchase protection

Credit cards often come with purchase protections, such as extended warranties, fraud protection and dispute resolution if something goes wrong with your purchase. With BNPL, these protections are either very limited or nonexistent.

5. Potential debt accumulation

BNPL can still lead to debt accumulation if not managed carefully. The ease of splitting payments might encourage shoppers to take on multiple BNPL plans at the same time, which can lead to future budgeting challenges.

When should I choose buy now, pay later?

BNPL can be a helpful tool if you’re making a planned, necessary purchase and you’ve already budgeted for the payments. Additionally, BNPL can be useful if you need something immediately but can’t pay for it right now. Finally, if an item you plan to buy soon is temporarily discounted, it can be worthwhile to buy it now and pay it off, thus saving on the purchase price. Before you choose BNPL for any reason, though, be sure you can pay off the balance within the agreed timeframe.

When should I avoid buy now, pay later?

It’s best to avoid BNPL if you’re prone to impulse purchases or if you’re already carrying debt. If you struggle with managing payments or keeping track of bills, the risk of late fees and penalties likely outweighs the benefits of spreading out payments.

Use our guide to learn about BNPL so you can make an informed decision before choosing this payment option.

Black Friday Hacks

Black Friday is the bargain-hunter’s dream, but it’s a game that’s gotta be played right. Follow these hacks to score big during the biggest shopping day of the year.

Do your research

Many stores release Black Friday ads ahead of time. It allows you to preview upcoming deals and compare prices across different retailers to make a plan for your buying spree.

Make a budget and stick to it

With all the tempting offers during Black Friday, it’s easy to overspend. That’s why it’s so important to set a budget before you start shopping. Decide how much you’re willing to spend overall and allocate amounts for specific items.

Get following

If you aren’t already doing it, follow your favorite retailers on social media. Sign up for email and text alerts, too. You’ll be the first to know about their upcoming sales and deals. You may also want to join their loyalty programs for exclusive early access to Black Friday sales.

Look for discount codes

Don’t settle for the marked-down Black Friday prices. Look for discounts that can bring the price down even further on sites like Vouchercodes and MyVoucherCodes. You’ll find discounts for designer retailers, restaurants and experience days.

Use apps and websites for price comparisons

During Black Friday, it’s important to compare prices from different retailers to make sure you’re really getting the best deal. Lucky for you, there’s an app for that! Tools like Google Shopping, PriceGrabber and ShopSavvy let you scan barcodes or search for products to see how prices stack up at various stores.

Check an item’s pricing history

Don’t just assume every price you encounter on Black Friday is actually being sold at a great discount. Check the price history of any product on price-checking websites like Keepa, Honey and CamelCamelCamel to see the item’s original price and whether it’s really being sold at a significant discount.

Stack coupons

Some retailers let you combine multiple coupons or promotions on top of their Black Friday discounts, which can lead to steep savings.

Focus on big-ticket items

Black Friday is often the best time to buy big-ticket items like electronics, appliances and furniture. Retailers tend to offer their biggest discounts on high-value products during this time, which means it’s your chance to save hundreds of dollars on a new TV, laptop or large kitchen appliance.

Use our hacks to be the Black Friday beast this year with the best bargains on the block!

How to Celebrate Thanksgiving on a Budget

Thanksgiving isn’t cheap! With the costs of food, decor and travel, there are so many expenses to cover. With a bit of planning, though, you can enjoy a festive holiday without breaking the bank. Here’s how to save on Thanksgiving costs this year.

Start your shopping early

Retailers start displaying Thanksgiving staples early, so if you start ahead of time, you can build up your supplies over weeks while spotting the best deal on everything. Plan your menu around these deals to save even more.

Stick to your list and budget

Before starting your prep, take the time to create a Thanksgiving shopping list and a budget for all your expenses. Without a budget, it’s easy to go overboard with your shopping. Be sure to include all Thanksgiving expenses in your budget.

Plan your travel wisely

If your Thanksgiving plans include traveling, follow these tips to keep costs low.

First, choose to fly on slower travel days. Flying the Monday before Thanksgiving will generally net you cheaper tickets than traveling on Tuesday or Wednesday. You’ll also want to book tickets at least six weeks ahead so you don’t end up paying a premium for last-minute plans. Finally, consider traveling lightly to avoid baggage fees.

Go potluck

Save on your Thanksgiving dinner costs by sharing the load and going potluck. Ask each of your guests to bring along one dish for a dinner that’s easier to prepare and lighter on the wallet. As a bonus, your dinner will have a lot more variety and will likely be more enjoyable as well.

Keep it simple

Thanksgiving is about spending time with the people who matter to you most and expressing gratitude for blessings in your life. Keep this in mind as you prepare for the holiday and resist the pressure to go overboard with food or décor. A simple meal served by a calm and present host can be more meaningful than an extravagant spread prepared by a cook who is frazzled and worn out.

Decorate on a budget

Instead of spending boatloads of money on store-bought décor, make your own with items you already have. Beautiful fall leaves, pinecones and branches can be used to create striking centerpieces and table settings. You can also repurpose things you already own, like Mason jars, candles and baskets.

Use these tips for a memorable Thanksgiving on a budget.

Don’t Get Caught in an Election Scam

Democracy is a privilege that’s upheld by the election process. But scammers are out to hijack this process and cause havoc throughout election season. Here are three scams to watch out for this time of year.

Eleventh-hour campaign contributions

This scheme targets voters right before elections by asking them to make a donation toward their chosen candidate’s campaign. They’ll claim to represent the candidate and suggest that the candidate just needs one big push to move to the front of the line.

Unfortunately, if the target believes the caller and makes a donation, they’ll be giving money helping to line a scammer’s pockets.

Stay safe: If you’d like to contribute to a candidate’s campaign, reach out to campaign headquarters on your own through their website.

Polling for information

During election season, informal poll-takers and petitioners are everywhere while canvassing voters. Once they have your attention, they’ll ask who you’re voting for, request that you fill out a survey or have you sign an election petition on a particular issue. But first, some will say they’ll need your personally identifiable information (PII), like your name, date of birth, home address and even your Social Security number. If you oblige, you’ll be sharing your information with a scammer.

Stay safe: Never share your PII with an unverified contact. If you do decide to fill out a voter survey, be super-selective about the information you share. Don’t share your Social Security number, driver’s license number or any other information that can be hijacked for crime.

Voter re-registration

In the weeks leading up to Election Day, you may get a bogus voter registration form, claiming your name has been mistakenly removed from voter rolls. They will say you can get back on by filling out this form and mailing it out. Alternatively, they’ll reach out over the phone, text or email, and tell you to register by responding. Naturally, this is a ruse.

Stay safe: Remember that you can only register to vote by mail. In addition, there’s no reason to believe your registration is no longer valid. If in doubt, search your state’s Secretary of State website.

Stay safe!

Anatomy of a Car Payment

When you get a loan to buy a car, you’ll get a new set of keys — and a new monthly payment. It may have you wondering how this payment is determined and how it’s calculated.

So many questions, and we’ve got answers! Let’s break down the parts of a car payment, explain how monthly payments are calculated and offer tips for managing your payments well.

What are the components of a car payment?

Principal

The principal is the amount of money you borrow to purchase the car. For example, if you buy a car priced at $35,000, and you put $5,000 as a down payment, the principal of your loan is $30,000.

A portion of each monthly mortgage payment will go toward paying down the principal balance of your loan.

Interest

Interest is the cost of borrowing money from a lender. It’s calculated as a percentage of the principal amount and is added to your monthly car payment. The interest rate on your loan will depend on a handful of factors like your credit score, the length of the loan term and the current market conditions.

Loan term

While this is not really a part of the loan, you’ll likely see this referenced on your monthly statement or loan bill. The loan term is the length of time you have for repaying the total loan, typically expressed in months. Common auto loan terms range from 36 to 72 months, with some loans extending even longer. The longer the term is, the lower the monthly payments will be, but the more interest you’ll pay over the life of the loan.

If you’ve rolled additional costs into the loan, they may also be part of your monthly payment. This can include:

Taxes and fees

If you choose to finance taxes, registration fees or other upfront costs of the loan, these will be included in your loan amount and will increase your monthly payment. These costs are not itemized separately; instead, they’ll be incorporated into the principal.

Add-ons

Optional add-ons like extended warranties, gap insurance and other products you choose to finance will also be included in your loan principal, thus increasing your monthly payment.

Additional costs of car ownership

While not included in your monthly loan payment, these expenses are an inherent part of owning a car:

Insurance. Lenders typically require you to carry comprehensive and collision coverage as part of your financing agreement, ensuring the car is protected if in an accident.
Maintenance. Your car will need regular maintenance and upkeep, which you’ll need to budget for.
Fuel or electricity. Of course, you won’t be able to drive a car without gas or springing for electricity to power it.

How are car payments calculated?

To calculate your monthly payment, the lender will take the principal of the loan along with any add-on costs, and the interest amount due, and divide this number by the months in your loan term. This is the amount you’ll need to pay each month.

Managing your car payment

Managing your car payment well requires careful planning and budgeting. Here are a few tips to help you stay on top of your payments and minimize the overall cost of your car loan:

Compare offers from multiple lenders to find the best interest rates and loan terms.
If possible, make a larger down payment to reduce the amount you need to finance.
Choose a shorter loan term.

High Point FCU auto loans offer great terms, easy eligibility requirements for qualifying members and a quick application process. Call, click or stop by today to learn more.

Beware of Auto Repair Scams

Unless you’re an auto mechanic or self-professed expert on cars, you likely don’t know all there is about the inner workings of your car. This can make you vulnerable to falling for an auto repair scam, which can be challenging to spot.

Here’s what you need to know about auto repair scams, and how to keep yourself from falling victim.

How auto repair scams play out

Auto repair scams can come in many forms, but they generally follow a similar pattern. Here are a few common scenarios:

The mystery problem scam. You take your car in for a simple issue, like an oil change or tire rotation and the mechanic “discovers” a more serious, often vague problem requiring immediate attention.
The bait and switch scam. Here, a repair shop advertises a low price for a common service. Once your car is in the shop, they’ll find additional “necessary” repairs that inflate the final bill. The shop may even perform the extra work without your consent, leaving you with no choice but to pay.
The used parts scam. In this scam, a mechanic charges you for new parts but installs used or refurbished ones. The parts may be of inferior quality, leading to more frequent breakdowns and the need for additional repairs..
The endless repairs scam. After completing a repair, the mechanic tells you that another unrelated issue needs fixing. This cycle continues, with one repair leading to another, making it seem like your car is constantly in need of service.

Red flags to watch out for

Look out for these warning signs that you may have been targeted by an auto repair scam:

1. Unsolicited repair suggestions.
Vague or confusing explanations for repairs that are allegedly necessary.
High-pressure tactics.
Refusal to provide written estimates.
Unexplained charges on the invoice.

Protect yourself

Here’s how to protect yourself from falling victim to an auto repair scam.

First, before hiring a mechanic or heading to an auto repair shop, do your research. Look up reviews online, ask for recommendations from friends or family and check the shop’s credentials. It’s also recommended that you familiarize yourself with your car’s basic maintenance needs and how it functions. The more you know, the less likely you are to be taken advantage of.

Next, get a second, or even third opinion on any major repairs before agreeing to have work done. Comparing estimates can help you determine if a shop is overcharging or recommending unnecessary work.

Keep detailed records of all repairs and services performed on your vehicle so you can track its history and identify any inconsistencies if a mechanic claims something needs repeated attention.

Finally, if you find a mechanic you trust, stick with them. Building a long-term relationship can help ensure that your car receives honest, high-quality service over time.

Auto repair scams can be a nightmare for car owners, but by staying informed and vigilant, you can protect yourself from falling victim. Stay safe!

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.

How to Protect Yourself from Google Voice Verification Scams

The Google Voice verification scam can result in a lot of inconvenience and possible identity theft. Here’s all you need to know about Google Voice verification scams and how to stay safe.

How does the scam play out?

It all starts with a scammer contacting a target under the impression of responding to an online ad or inquiry the target has posted. The scammer expresses interest in buying an item the target is selling. To verify the victim’s legitimacy, they’ll claim they need to send a Google Voice verification code. They’ll ask the victim to share this code with them. What they are really doing is using the victim’s code to set up a Google Voice account in the victim’s name. Once they have this account, they’ll use it to carry out additional scams, masking their identity behind this phone number.

Protect yourself

Follow these tips to protect yourself from falling victim to this scam:

Understand how the scam works

Be aware that no legitimate transaction or interaction requires you to share a verification code sent to your phone by Google. If someone asks for this code, it’s a huge red flag!

Do not share verification codes

Giving verification codes to someone else can grant them access to your personal accounts or allow them to set up new accounts in your name.

Enable two-factor authentication

When possible, enable two-factor authentication (2FA) on your Google account and other sensitive online accounts. This adds an extra layer of security by requiring a second form of verification in addition to your password.

Verify identities carefully

When dealing with online transactions or interactions, verify the identity of the person you are dealing with. Use trusted platforms and be wary of deals that seem too good to be true.

Monitor your accounts

Check for unauthorized logins or any other unusual behavior. If you notice anything suspicious, change your passwords and contact the platform’s support team.

If you’ve been scammed

If you suspect you’ve fallen victim to a Google Voice verification scam, here’s how to mitigate the damage:

Reclaim your Google Voice number by following Google’s support instructions.
Report the scam to Google and the platform where the scam originated.
Change your Google account password and any other passwords that may have been compromised.
Enable additional security measures, such as security questions or biometric verification, to your Google Voice number account.

Stay safe!

Political Fundraising Scams

The Better Business Bureau (BBB) is warning of an uptick in political fundraising scams seeking to collect donations allegedly going toward a candidate’s campaign or specific cause.

Here’s all you need to know about political fundraising scams:

How the scams play out

In a political fundraising scam, the victim receives a call from someone claiming to be collecting money for a political candidate or cause. The caller is aggressive and demanding until the victim agrees to make a donation. They will also insist on immediate payment. The victim, not recognizing the scam, willingly donates money — which goes directly into the scammer’s pockets.

In another variation of this scam, the victim is targeted by a bogus online ad or email. After clicking on the ad or embedded link in the email, the victim is directed to donate funds. Here, too, the money goes directly to the scammer.

Red flags

To spot a political fundraising scam, be on the lookout for these red flags:

Fundraising email has grammatical errors and spelling mistakes
Caller urges voter to make an immediate donation
Caller or email insists on payment by specific means, such as wire transfer or prepaid debit card
Email is sent from an insecure domain
Email is sent from a domain that does not have a legitimate online presence

If you’d like to donate

If you’d like to make a donation to your favored campaign or cause, follow these tips:

Donate directly on the candidate or cause’s official website.
Never make a donation on a website that has an insecure address.
Be cautious of phone solicitations for donations.
Research any cause you’d like to donate to by researching FEC.gov or the Center for Responsive Politics.
Don’t donate to a cause that does not ask for your citizenship status.
When donating funds, it’s best to use a credit card.

If you spot a scam

The FBI urges all citizens to report any election scams to a local FBI field office as soon as possible.

This election season, vote no for scams!

Summer Entertaining on a Budget

Summer is the perfect time to gather with family and friends to enjoy warm weather, but all that hosting can come with extra costs. Fortunately, you can have your party, and your budget, too. Here’s how to host the best gatherings this season without draining your wallet.

Plan ahead

Start by creating a guest list and deciding on a theme or menu. This will help you stay focused and avoid last-minute impulse buys.

Keep it simple

Keep your menu simple and focus on a few crowd-pleasing dishes that can be prepared in advance. Of course, you can always go for a barbecue in the summer, and grill your proteins and veggies on the spot.

Host a potluck

If you want to host another dinner, but you don’t want to cook for it, have a potluck. Divide your menu and have each guest bring one dish along for a varied meal that’s easy and inexpensive for everyone.

DIY décor

Get creative and make your own decorations using items you already have at home or inexpensive materials from a dollar store. You can use fresh flowers, candles, Mason jars or colorful tablecloths to add a festive touch to your outdoor space.

Choose budget-friendly beverages

Save money by serving budget-friendly beverage options like homemade sangria or signature cocktails. Consider shopping at discount stores or keep it dry and stick to refreshing non-alcoholic beverages.

Take it outside

There’s no need to book a venue when the weather is gorgeous outside. Take advantage of your outdoor spaces and host your gathering in your backyard or out on your patio. You can also have your party at a local park or scenic waterfront.

Shop smart

Shop discount stores, warehouse clubs, or dollar stores for affordable party supplies, decorations, and disposable tableware. If you’ll be hosting often this season, consider buying in bulk to save even more.

Get creative with entertainment

Entertainment doesn’t have to cost a fortune … or anything, actually! Get creative with budget-friendly options like backyard games, DIY photo booths or even just a playlist of your favorite tunes. Encourage guests to bring their own games or sports equipment to add to the fun.

Let those savings sizzle!

Beware Advance Payment Scams!

It’s an awesome deal, but there’s a catch: payment of an advance fee. Before you pay up, though, take a step back and look at the transaction from every possible angle. You might be wrapped in the allure of an advance payment scam.

Let’s take a look at these scams, how they work and what steps you can take to keep yourself from falling for these ruses.

How the scams play out

In an advance payment scam, a fraudster asks for an upfront payment from the victim. They promise something valuable in return. Once the payment is made, the promised goods, services or benefits never materialize. Instead, the scammer disappears with the money and is never heard from again.

Variations of advance payment scams

Advance payment scams can play out in many forms:

Job offer scams-Scammers post fake job listings offering high-paying positions. They’ll ask for an upfront fee to cover the cost of background checks, training materials or other expenses. Once the fee is paid, the job offer vanishes.
Lottery and prize scams-Victims get notifications claiming they’ve won a big payday or valuable prize. To claim it, they must pay taxes, fees, or shipping costs ahead of time. After paying, they receive nothing.
Loan scams-Individuals seeking loans are asked to pay processing fees, insurance, or collateral fees upfront. The loan is never provided, and the advance payment is lost.
Investment scams-Scammers lure victims with promises of high investment returns. They require an initial investment or fee. After payment is made, the scammer disappears.
Online marketplace scams-Fraudsters advertise high-demand items at attractive prices online. Buyers are asked to pay upfront for the items, which are never delivered.

Red flags

Here are red flags of a potential advance fee scam:

Offers that are too good to be true
Requests for upfront payment
Pressure to respond quickly
Lack of contact information
Poor grammar and spelling
Requests for untraceable payments

Protect yourself

Here’s how to protect yourself from advance payment scams:

Before making any payments, research the company or individual offering the deal to confirm legitimacy through official sources. You’ll also want to verify every job offer by contacting the company directly using authenticated contact information. Be wary of surprise wins; if you don’t remember entering a sweepstakes, you probably didn’t win a big prize. Consult with a professional when investing in a new stock and, finally, only make online payments by methods that offer protection and recourse, such as credit cards.

If you’ve been scammed

If you’ve fallen for an advance fee scam, contact your financial institution or payment provider to request a reversal of the transaction. Next, reach out to the FTC and other law enforcement agencies to let them know about the scam. Share your experience to warn your friends and family about the scam. Finally, keep a close eye on your bank and credit card statements for any unauthorized transactions.

Stay safe!

How to Report Fraud

You’ve been frauded! It’s a disaster, and the longer you wait to act, the worse it will get.

What do you do now?

It’s a crucial question, and we’ve got answers! Here’s what to do if you’ve fallen victim to fraud:

Immediate steps

As soon as you discover the fraud, take these steps:

Document the fraud. Collect all relevant info, including emails, receipts, account statements and any other documentation that can serve as evidence.
Contact your financial institutions. Notify your credit union or bank, credit card companies and any other financial institutions about the fraud. They can freeze your accounts, issue new cards and help prevent further unauthorized transactions.
Change passwords. Immediately change passwords for any online accounts that may have been compromised.

Reporting fraud to the authorities

Here are the key organizations to contact:

Federal Trade Commission (FTC). The FTC is the primary agency for reporting fraud in the United States. You can file a complaint online or call 1-877-FTC-HELP (1-877-382-4357).
Local law enforcement. File a report with your local police department. Provide them with all the evidence you have collected.
Internet Crime Complaint Center (IC3). For online fraud, report to the IC3, a partnership between the FBI and the National White Collar Crime Center. File a complaint here.
State consumer protection offices. Many states have consumer protection offices that handle fraud complaints.
Credit reporting agencies. Contact the major credit bureaus (Equifax, Experian and TransUnion) to place a fraud alert on your credit report.

Specialized reporting for specific types of fraud

Depending on the type of fraud, you may need to report to additional specialized agencies:

Identity Theft: Report identity theft to the FTC at IdentityTheft.gov.
Securities Fraud: If you’re a victim of investment fraud, report it to the Securities and Exchange Commission (SEC) at SEC.gov.
Tax Fraud: For tax-related identity theft or fraud, contact the Internal Revenue Service (IRS) at IRS.gov or at 1-800-908-4490.
Mail Fraud: If fraud was conducted using the U.S. Postal Service, report it to the U.S. Postal Inspection Service at USPIS.gov.

How to protect yourself from future fraud

Monitor your checking account statements, credit bills and credit reports regularly for sketchy activity. Also, use strong, unique passwords for all of your accounts. Never share personal information with an unverified contact. Finally, keep yourself educated about scams.

Stay safe!