Archive forFinancing A Car

The Advantage of Leasing Vs Financing a Car

Car buying consumers no longer have to go through the annoying hassle of visiting a wide range of car dealerships to check out various competing.

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4 Types of Atlanta Auto Loans: Which Is Best for You?

This content is sponsored by PenFed, one of the country’s strongest and most stable financial institutions with more than 1.4 million members and $19 billion in assets. Established in 1935, PenFed is federally insured by NCUA and an equal housing lender.

As gas prices slowly return to normal levels, you might no longer fear that trip to the pump. As of Feb. 1, 2016, the average price per gallon for regular gas in Atlanta was $1.75, according to AAAs Daily Fuel Gauge Report. This rate is about $0.20 less per gallon than it was a year prior, and $2.30 less than the highest recorded average for the city in 2008.

If you compensated for higher gas prices by ditching your car and using public transportation in recent years, lower rates might motivate you to get back behind the wheel. However, the price of Atlanta auto sales could compel you to change your mind. If you need a new car and cant afford to pay cash upfront, an auto loan might be your best bet.

Related: 10 Huge Mistakes to Avoid When Financing a Car

What You Need to Know About Getting an Auto Loan

An auto loan — or secured loan used to buy a car — allows you to purchase much-needed transportation without depleting your savings. After being approved for financing, you can typically opt to pay off the vehicle in 36, 48, 60, 72 or even 84 months, based on what you can afford. While Atlanta auto loans dont always require upfront cash, giving the lender a down payment reduces the loan balance and helps you qualify for a lower interest rate.

The truth is that finding the right auto loan is just as important as finding the right car. Although Atlanta car dealers can help you secure financing, you shouldn’t necessarily accept the first offer you receive. Additionally, borrowers should look beyond monthly payments when making their decisions.

Don’t get hung up on the monthly payment; it [might] be attractive but not if you’re paying a high percentage APR over 60 or 72 months, said Sean Worthy, director of automotive, sales and business development at Pentagon Federal Credit Union. The lower the interest rate, the less money you will pay in interest over the life of the loan.

When shopping for an auto loan, buyers can choose from a plethora of lenders. On average, credit unions offer lower rates on auto loans than banks. Not only does a low rate save you money in the long term, but it also increases your buying power. While credit unions might be smaller and have fewer locations than big banks, they can offer auto loans that truly fit your needs.

Atlanta Auto Loan Options

In addition to finding a good rate and payment amount on your auto loan, you should consider all of the types of auto loans available to you before you buy a car in Atlanta. Carefully evaluate your budget and driving needs to determine which auto loan type is most appropriate for you and the car you want to buy. Here are four options to help you start your research.

1. New Auto Loan

A new auto loan is given specifically for the purchase of a brand-new car. While the vehicle could be last years model, you must be the first owner of the car in order to qualify for a new auto loan.

A new car is the perfect choice for buyers who prefer low mileage and the latest features and gadgets. Moreover, since the manufacturer usually offers a standard three-year warranty on a new car, owners can rest assured knowing theyre protected if something breaks down.

Additionally, new car loans tend to have lower interest rates than used car loans. Still, Worthy cautions buyers against accepting 0% APR offers without reading the fine print.

Sometimes these offers are only valid for 36 months, which will leave you with a high monthly payment, said Worthy. Also, manufacturers will run specials like 0% financing or a dollar amount in cash back, for example $2,500. In some cases, you would be better [off financing] with a credit union or bank at a slightly higher interest rate, and tak[ing] the cash back offer from the manufacturer.

2. Used Auto Loan

You might like the idea of being the first owner of a vehicle, but you also probably know that a new car loses about 19 percent of its value in the first year. Buying used makes good financial sense if you want to save on a car purchase and reduce the risk of negative equity, or indebtedness that occurs when the value of the vehicle falls below the amount still owed.

In some cases, buying used also lets you get more car for your money. While the new car price for a specific model might be too steep, in many cases its possible to find a used version offering all the top features within your budget.

While buying used can get you luxury car features without the luxury price tag, its important to keep the loan rate in mind when making a decision. Because most lenders want you to buy new, the rates for used car loans tend to be higher. Weigh the pros and cons and make the best choice for you and your family.

3. Auto Loan Refinance

When you hear the term “refinance,” you might think it only applies to home loans. However, the truth is that refinancing — which involves paying off an old loan with a new one — can apply to any type of loan, including auto loans. If you applied for an auto loan but didn’t receive the most favorable terms, refinancing once your credit improves can help you get a better interest rate and a lower monthly payment.

Unfortunately, some banks and credit unions will not refinance older cars. Auto refinancing requirements vary by lender, and borrowers should do their homework to ensure they can get the best possible deals down the line.

Related: 7 Mistakes to Avoid When Refinancing a Car Loan

You also could ask your lender if additional loan options or adjustments are available to you. For example, PenFed’s Rate Reset Program allows eligible members the ability to extend their current car loan terms up to 24 months. When a member chooses a new term, PenFed will reset the member’s rate to that which is currently being offered for the same term, said Worth. The reset lowers the member’s monthly payments for the duration of the loan.

4. Payment Saver Auto Loans

Shopping around for an Atlanta auto loan is also an excellent way to find credit unions that offer specialized financing programs. Some people think leasing is the only way to snag a cheaper car payment, but the truth is there are other options available. For example, PenFed Credit Union offers a Payment Saver Auto Loan program for new and used vehicles. Rates start at just 1.74% APR and 2.24% APR for up to 60 months on new and used cars, respectively.

While the Payment Saver Loan is designed to reduce your monthly burden, borrowers should know that these loans do come with a caveat. Since you’re responsible for a balloon payment at the end of the term, this loan option is only appropriate if you anticipate having a lump sum of cash available to pay off the remaining balance.

Purchasing a car is a big decision, and its important that aspiring buyers do their research. By contacting a credit union, you can increase your odds of finding the best rate on an Atlanta auto loan.

Related: What Is the Difference Between Banks and Credit Unions?

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Residents Of The West And New England Have Nation’s Highest Credit Scores

CHARLOTTE, NC, Feb.4, 2016 /PRNewswire/ — San Francisco-area residents have the highest credit scores of any metro area in the US, increasing their eligibility for the best rates on mortgages and other types of loans.

Thats one of the findings of a new analysis of credit scores and loan offer information from LendingTree, the nations leading online loan marketplace. The company examined over four million loan requests made through LendingTree.com in 2015 to calculate average credit scores by metro areas, and to correlate credit scores with loan offer interest.

Western and Northeastern metros dominate the top spots on the credit score rankings, accounting for ten of the top twenty areas. Metros in Southern states account for virtually all of the twenty lowest-ranking cities.

Credit scores represent peoples creditworthiness for loans through a calculation of several different factors, including the amount an individual currently owes to lenders and his or her credit history. Most credit score models range from a low of 300 to a high of 850, with those above 720 usually considered excellent loan candidates and those below 500 generally classified as poor candidates. The average score in this study is 643.

Because credit scores are so closely tied to interest rates offered to borrowers, a credit score difference of even 50 points can mean substantial financial savings for large financial transactions like buying a home, financing a car or consolidating debt, said Doug Lebda, founder and CEO of LendingTree. Knowing and managing your credit score is especially important in this volatile interest rate environment.

People living around San Francisco and San Jose boast an average score of approximately 673, besting Bridgeport, CT and Boston, both about 664, Oxnard/Thousand Oaks, CA at roughly 663 and Denver and Washington, DC, each around 662.

With an average credit score of 620, Jackson, MS takes the lists bottom spot.

Credit and loans

In 2015, borrowers with a credit score of 720 and higher were offered APRs averaging 4.15% for a 30-year fixed rate purchase mortgage. For a $200,000 loan, the monthly payment would be roughly $963 per month.

However, borrowers with a credit score between 620 and 639 were offered APRs averaging 4.93%. For the same loan, the borrower with the lower credit score would pay about $1,052 per month, a difference of roughly $89 per month, $1,068 per year or over $32,000 over the life of the loan.

If you are planning a major purchase in the next year or two, there are several steps you can take now that will help to improve your credit score in the future, said Lebda. Reducing balances on credit cards is a good place to start. Second, always be diligent about paying your bills on time and find ways to remind yourself of when a payment is due. Third, be sure to review details in your credit report and alert the major credit agencies to any errors. With MyLendingTree, we provide a free monthly credit score and score analysis to help consumers easily monitor and manage their credit score. We also analyze interest rates offered on our network and, based on your credit profile and existing loan details, will let you know if you could be overpaying, by how much, and what you can do to save money on your loan payments.

Many Millennials are Missing Out on a ‘Fund with Benefits’

Many Millennials are Missing Out on a ‘Fund with Benefits’

January 18, 2016: 05:00 AM ET

Only half of younger Canadians know their RSP funds can be used to buy a first home

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  • What else can you do with RSP funds? #FundsWithBenefits http://bit.ly/1xKEVNK (Tweet this)

TORONTO, Jan. 18, 2016 /CNW/ – Millennials may be making it harder for themselves to buy their first home or go back to school as a mature student because many don’t know a retirement savings plan can also be a ‘fund with benefits’, helping fund important milestones in life, long before retirement. As a new survey from TD has found, only half (50 per cent) of Canadians aged 18-33 know that money in an RSP can be used to help purchase their first home and barely a quarter (28 per cent) know RSP funds can help pay for full-time education or training as a mature student.

“Saving enough money for a down payment on a home can be difficult for many younger Canadians, so the ability to withdraw up to $25,000 from an RSP, or up to $50,000 for a couple, can help make it easier,” said Linda MacKay, Senior Vice President, Personal Savings and Investing at TD Canada Trust. “Building up an RSP from the earliest possible moment not only helps you save on income tax now, but could also help get you into your first home more quickly and lower your monthly mortgage payments down the road.”

MacKay notes that any money withdrawn from an RSP to buy a home must be repaid over the next 15 years or it will be taxed as annual income, whereas money withdrawn as part of a Lifelong Learning Plan – up to $20,000 over a four-year period – must be repaid within 10 years.

The TD survey found that almost one-third (32 per cent) of millennials admit they are “not at all knowledgeable” about RSPs. For those who are not saving enough for retirement, more than 40 per cent say they can’t afford to contribute right now because there are too many demands on their money, while more than a quarter (28 per cent) say they’re currently saving for other priorities.

According to the survey, many millennials are unaware that RSP funds cannot be used for other items such as making a charitable donation (64 per cent), paying childcare expenses (60 per cent), financing a car (52 per cent), making a personal loan (51 per cent), renting an apartment or purchasing a second home (50 per cent). Half (50 per cent) of all millennials surveyed correctly identified that RSP funds can be used for first time home purchase, although just 28 per cent were aware they can be used to fund full-time education as a mature student.

“It’s easy to see how younger Canadians find it difficult to make regular RSP contributions when there are so many things they want to save for now,” said Lee Bennett, Senior Vice President, TD Wealth Financial Planning. “But knowing you can use part of your RSP for some more immediate priorities, in addition to reaching your long-term financial goals, can make it easier to redirect at least part of your savings into one.”

Bennett says there are pros and cons and long-term implications of using RSP funds to buy a home or pursue further education, including giving up the potential growth of RSP savings until that money is repaid into the plan. As with any significant investment decision, she recommends investors consult with a financial planner who can help explain what’s best for each individual.

MacKay agrees, adding that it’s important to have a bit of know-how and understand clearly what an RSP can – and cannot – be used for in order to avoid incurring tax penalties for improper withdrawals and to be able to maximize the amount of money that can be saved. She says this applies particularly to millennials who, as the TD survey shows, have many misconceptions about how an RSP fund can be used.

To learn more about Retirement Savings Plans, visit www.tdcanadatrust.com/products-services/investing/rsps/rsp-index.jsp#what-is-it, or book an appointment online to speak to an advisor about your RSP options.

About the TD Funds with Benefits Survey
The TD Poll surveyed 2,115 respondents 18 years or older (of which 613 were between 18-33 years of age and considered Millennials) from across Canada and was conducted using an online methodology by Environics Research between Friday, October 30th and Thursday, November 5th, 2015.

About TD Canada Trust
TD Canada Trust offers personal and business banking to more than 11.5 million customers. We provide a wide range of products and services from chequing and savings accounts, to credit cards, mortgages and business banking, plus credit protection and credit travel medical insurance, as well as advice on managing everyday finances. TD Canada Trust makes banking comfortable with award-winning service and convenience through 24/7 mobile, internet, telephone and ATM banking, as well as at over 1,100 branches, with convenient hours to serve customers better. For more information, please visit: www.tdcanadatrust.com. TD Canada Trust is the Canadian retail bank of TD Bank Group, the sixth largest bank in North America.

About TD Wealth Financial Planning
TD Wealth Financial Planning is a division of TD Waterhouse Canada Inc., a subsidiary of The Toronto-Dominion Bank. As of November 30, 2015, TD Wealth Financial Planning included 887 advisors offering a diverse range of services to 359,745 clients and $48.6B assets under management.

SOURCE TD Canada Trust

 

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Fed Raises Interest Rate For First Time In Nearly A Decade

WASHINGTON (CBS/AP) — For anyone considering whether to buy a home or car, the Federal Reserves interest rate increase Wednesday shouldnt make much difference.

The rates that most people pay for mortgages, auto loans or college tuition arent expected to jump anytime soon. The Feds benchmark interest rate has limited influence on those things.

Still, the Feds move to lift its key rate by a quarter-percentage point will raise short-term borrowing costs for banks. And that, in turn, is intended to prod banks to boost certain other rates. Rates on credit cards and home equity loans and credit lines, for example, will most likely rise, though probably only slightly.

KYW Newsradios Molly Daly asked a local expert how the rate hike will affect your finances.

Penn Wharton School Assistant Professor Peter Conti-Brown, whose focus is central banking and financial regulation, said the Feds decision to raise rates is both inconsequential and historic.

It shouldnt really affect decisions that individuals, households or firms are making. If theyre thinking about buying a new home, financing a car, or their education, most of these kinds of borrowing happen on fixed rates, Conti-Brown explained.

Conti-Brown also said that after signaling more than a year ago that it would raise rates in 2015, the Fed pretty much had to do it now, or risked losing credibility.

The rate the Fed controls is only one factor among many that can influence longer-term borrowing costs. And the Fed made clear it will assess the economys health before raising rates further.

Loans that are linked to longer-term interest rates are unlikely to move very much, Fed Chair Janet Yellen said at a news conference. Credit card rates might move up slightly. But remember, we have very lowrates, and weve made a very small move.

Mortgage rates tend to move in sync with the yield on 10-year Treasury notes. When inflation remains as low as it is now, Treasury notes, with their modest returns, are considered a safe and decent investment. And heavy purchases of Treasurys by US and foreign investors — and by many foreign governments, such as China — help keep those yields low.

The demand for Treasurys has mushroomed, said Carl Tannenbaum, chief economist at Northern Trust. What that means is that for any given monetary policy, interest rates are still going to be lower than they would have been 10 or 15 years ago.

The Feds decision to raise rates is in many ways a healthy sign: Its a vote of confidence that the economy, 6½ years after the Great Recession officially ended, can finally withstand higher borrowing costs and keep growing at an acceptable pace.

Even with a rate increase, most economists expect consumer spending to stay heathy and solid hiring to continue, perhaps even driving unemployment even further below its current low level of 5 percent. Should the economy stumble, the Fed could postpone further rate increases.

Other trends are also working in consumers favor: Gas prices are still falling, and there are signs that paychecks are finally starting to rise after years of sluggish growth.

These things are good for the consumer and will easily outweigh the impact of a rate increase, said Chris Christopher, an economist at forecasting firm IHS Global Insight.

The most visible effects of the Fed increases will probably be in short-term borrowing. Rates for credit cards and home equity lines of credit should rise, typically by the same amount as the Feds increase. The increases could appear as soon as one or two months after the Feds action. Those rates are tied to banks prime rate, which responds quickly to the Feds changes.

Also, Americans with adjustable-rate mortgages will probably face a higher rate at the date of their next adjustment. Auto-loan costs may rise as well, economists said, though not as fast as the short-term rate the Fed controls. Auto-loan rates typically follow the yield on two-year Treasurys.

Greg McBride, chief financial analyst at Bankrate.com, calculates that for a $25,000, five-year car loan, a one-quarter percentage point increase would boost monthly payments by precisely $3.

The interest rate impact on the typical household from a quarter percentage point move is almost inconsequential, he said. Most people wont even notice.

And most people buy homes for reasons that have little to do with a slight rise or fall in mortgage rates, McBride said. They tend to buy when they feel financially secure or experience a major life change, such as having children.

All those reasons people buy houses remain the same, whether mortgage rates are 4 percent or 4.25 percent, McBride said.

Last month, Doug Lewandowski moved up the closing date on his purchase of a two-bedroom Chicago condo so that he could lock in his rate. He has seen mortgage rates rise by a quarter-point since he started looking in August. Still, the timing of the Feds move wasnt a big factor in his decision.

I didnt want rates to jump up significantly, he said, but I wasnt willing to settle on a place just to get a lower interest rate.

Lewandowskis outlook, if typical of prospective homeowners, is one reason many economists think home sales may rise next year even if mortgage rates tick up.

Many analysts expect the Fed to gradually raise its short-term rate by a total of 1 percentage point by the end of 2016. If so, Frank Nothaft, chief economist at CoreLogic, forecasts that the average 30-year fixed mortgage would rise from roughly 4 percent to about 4.5 percent.

To put that in perspective, before the Great Recession the 30-year fixed mortgage rate never fell below even 5 percent.

Molly Daly contributed to this report.

(TM and Copyright 2015 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2015 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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Boost for Auto Financing

Obinna Chima

Banks across the country have intensified their activities in the commercial banking sphere as a strategy of empowering their clients as well as of supporting them to achieve a certain life style and sustaining the habit.

In the past couple of months, a number of banks have gone into household appliances financing, car financing, and even home ownership financing.

This is seen as a positive development for the people, who normally would not have been able to acquire these items on their own.

One of such banks, Skye Bank Plc, recently went into some strategic alliances with some automobile companies to promote the acquisition of certain brands of cars with a view to ensuring that some of their customers adopt some lifestyles and habits that boost their social status.

Recently, Skye Bank went into partnership with RT Briscoe by providing financing for the Ford brand of cars for people who may not have the bulk amount needed to purchase such cars. Under the partnership, the bank will avail existing and prospective customers of the bank wishing to buy Ford cars during the six-month promo period of RT Briscoe by providing 70 per cent of the cost of such vehicles while the customer will contribute 30 per cent of the cost.

The special arrangement was to complement RT Briscoes attractive incentives for aspiring car owners in commemoration of its 10th year anniversary as Ford auto dealers in Nigeria.

According to the bank, the financing window would be available to Nigerians who earn regular income, including business owners with viable and thriving businesses under its Skye Auto finance scheme.

All a prospective buyer needs do is make his or her choice from any RT Briscoe outlet and visit any Skye bank branch with the purchase invoice, 20 per cent of the purchase price and evidence of income, the bank explained.

It further said customers who purchase Ford vehicles during the promo period through the bank will enjoy some exclusive benefits like discounted vehicle prices, two per cent interest rate discount on loans granted for vehicle acquisition, and 4-year free labour service on such cars.

Commenting on the partnership, Skye Banks Head of Retail Banking Group, Nkolika Okoli, explained thus: RT Briscoe is celebrating the 10th year anniversary of the Ford brand of vehicles in Nigeria and is giving special discounts on the vehicles for customers who will purchase from when the promo started.

Due to its desire to ensure as many Nigerians as earn a regular income (business owners inclusive) enjoy this unique opportunity, Skye Bank is providing financing for people who may not have the bulk amount needed to make a full upfront payment for their choice cars through its Skye auto finance scheme.

All a prospective buyer need do is make his or her choice from any RT Briscoe outlet and visit any Skye bank branch with the purchase invoice, 20 per cent of the purchase prize and evidence of income. Skye Bank contributes 80 per cent of the purchase price.

Other benefits include free car delivery on purchase, three-year warranty, eligibility to win another Ford vehicle in a raffle draw, among others.

Skye Bank has an auto loan scheme for its customers through which such customers can buy a wide range of vehicles after paying their equity contribution of 30 per cent, leaving the bank to provide the balance of 70 per cent.

Through the scheme, many Nigerians have acquired new cars of various brands which would have been impossible for them to acquire. Such car brands include Toyota, Honda, Nissan, Kia , Hyundai, Ford, among others.

Popular car brands like Toyota, Honda, Kia, Ford and Hyundai are the ones being greatly embraced by car buyers in their bid to make a lifestyle statement. In most cases, customers are presented with a wide range of options for financing a car or securing an auto loan.

This auto finance scheme is tailored to suit customers needs with manageable monthly repayments and is best suited for individuals, organisations, corporate bodies and institutions as it does not negatively affect their cashflows.

Recently, Access Bank Plc teamed up with Kia Motors to offer a flexible, convenient car finance scheme with attractive interest rates and loan tenure to make owning brand new Kia vehicles easy and convenient.

Similarly, Diamond Bank Plc and Dana Motors Limited, sole distributor of the Kia range of vehicles in Nigeria, recently announced a vehicle-financing plan that enables customers own Kia cars.

The financing scheme makes it possible for customers to acquire any Kia vehicle with zero per cent interest free loans, while spreading repayment across 12 or 18 months.

The three-segment financing scheme also present customers the opportunity of making down payment as low as five per cent of the value of their choice of vehicles as well as reduced interest rates.

In addition to enjoying the reduced down payment option, customers applying under the low interest offer will be entitled to up to 10 per cent cash back on the value of the Kia financed.

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PenFed Joins Government, Community and Business Leaders at the Grand Opening …

ALEXANDRIA, Va., Oct. 27, 2015 /PRNewswire-USNewswire/ — Senior executives from PenFed Credit Union were joined by a US State Representative, government officials from the state of Maryland, Prince Georges County and a host of corporate partners at todays grand opening of Marylands first Junior Achievement Finance Park. The 13,500-square-foot experiential financial literacy supercenter, located on the campus of G. James Gholson Middle School and Cora L. Rice Elementary School in Landover, Maryland is the second in the region, and will serve 9,000 students from Prince Georges County Public Schools each year.

School systems have realized that financial preparedness is something that our kids need when it comes to getting ahead just as much as they need science, technology and math, said Tammy Darvish, PenFed Credit Union executive vice president of business development, marketing and government and community affairs. Earlier this year, Darvish was honored with Montgomery County, Marylands 2015 William Donald Schaefer Helping People Award for her volunteer work in teaching financial readiness to high school students.

As a leading financial services provider, PenFed sees the promotion of financial readiness as a serious social responsibility, said Darvish.

Before students travel to JA Finance Park, they take part in JAs unique 14-lesson classroom curriculum taught by their teacher. This knowledge serves as a foundation in personal finance education and gives them the skills they need to take on their JA Finance Park experience successfully. Students experience culminates at JA Finance Park, where they have the opportunity to put their newly-learned skills to the test via practical application in a digital, 21st century, innovative learning environment.

Financial decisions made at the variety of storefronts and kiosks in the parks mini city correlate to the personal budget lines each student must manage during their JA Finance Park visit.

There is a PenFed Credit Union branch where students can test their budgeting skills by financing a car. Just like in real life, each choice a student makesthe type of car, the options, the term of the loan, etc., will have an impact on their bottom line. This is a wonderful way to help kids learn how to make smart financial choices early in life, said Zubair Rana, chief marketing officer at PenFed Credit Union.

As the students enter the doors of JA Finance Park, they leave behind their lives as middle school students and assume an adult financial identity: an avatar with a career, salary, credit score, debt, a family and financial obligations. On tablet computers, led by volunteer role models from the community, students make their way through various phases of the day, budgeting and adjusting for lifes unexpected events.

The Department of Treasury reported that the average high school student scored a 56% failing grade on the Financial Literacy Challenge, a test designed to assess financial knowledge. JA Finance Park is about inspiring a generation of Prince Georges County youth to be financially capable. Its about giving them the power to make the right financial choices and a new perspective on why staying in school and setting college and career goals is important to their ability to achieve their dreams, said Ed Grenier, president and CEO of Junior Achievement of Greater Washington.

US Representative, Donna Edwards (D-MD 4th District), a former Junior Achievement student, said Todays opening of JA Finance Park in Prince Georges County, will allow thousands of students to learn, through hands-on experiences, about making sound financial decisions.

This effort should serve as an example for our state, region, and the nation as to what public-private partnerships can achieve, she said.

PenFed Credit Unions partners include Capital One Investing, Chick-fil-A of Capital Boulevard and Steeplechase, Community Foundation of the National Capital Area, Doctors Community Hospital, E*TRADE, Enterprise Rent a Car, Financial Assurance Corporation, Geico, Lerner, Maryland-National Capital Park and Planning Commission, Pepco Holdings, Inc., Prince Georges County Community College, United Healthcare, Walmart, Washington Gas and the Washington Redskins Charitable Foundation.

About PenFed Credit Union
Established in 1935 as the War Department Credit Union, PenFed Credit Union is one of the largest credit unions in the country, serving 1.4 million members worldwide; with $19 billion in assets. Its long-standing mission has been to provide superior financial services in a cost effective manner, while being responsive to members needs. PenFed Credit Union offers market-leading mortgages, automobile loans, credit cards, checking, and a wide range of other financial services with its members interests always in mind. PenFed Credit Union serves a diverse population, and no military service is required to join. We offer many paths to membership, including numerous employee groups and association affiliations. Its easy to apply. We invite you to come see why you belong at PenFed Credit Union. PenFed Credit Union is federally insured by the NCUA and is an equal housing lender. To learn more about PenFed Credit Union, visit PenFed.org, like us on Facebook and follow us @PenFed on Twitter. Interested in working for PenFed? Check us out on Linkedin. We are proud to be an Equal Opportunity Employer: M/F/V/D.

Logo – http://photos.prnewswire.com/prnh/20150520/217371LOGO

SOURCE PenFed

RELATED LINKS
http://www.penfed.org

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9 Money Mistakes to Avoid in Your 20’s

Not Saving for Retirement

When you’re in your  20’s, retirement seems like it’s so far away, which makes it extremely easy to put off. However, not saving for retirement is one of the biggest (and most common) money mistakes you can make. The beauty of saving in your 20’s is that time is on your side. The earlier you start saving, the more you can take advantage of compound interest. In addition to the money you save personally, your employer may even give you money to help fund your retirment through a work sponsored retirment savings plan. A contribution of just 5% of your salary can make a huge difference on how much you’ll have when you retire. By not taking advantage of this time, you’ll either have to work longer, contribute more later, or not retire at all.

Going into Credit Card Debt

To a 20-something who doesn’t earn a lot, spending a bunch of money on a credit card can be very tempting. It is easy to put it on a card and believe you’ll pay for it later. Unfortunately, many in their 20’s don’t understand or respect how much debt can affect their life. Getting into credit card debt can lead to lifelong money consequences. However, if you learn to understand and respect your credit, you may be able to avoid this money mistake altogether.

Poor College Choices

The price of higher education has skyrocketed and student loan debt is having a lasting effect on the lives of many young adults. While tuition costs are a major factor, so is the attitude that a college degree is worth getting no matter the cost or return on investment. It isn’t. Prior to choosing a college or major, you (and your parents) need to assess the value of that education. Can I afford the tuition? What are the job prospects for graduates with that degree? What type of salary will I earn? Is there a way that I can obtain my degree for less? When possible, you may wish to consider well-paying careers with degrees that can be obtained for much less at technical and vocational schools. Remember, most employers don’t care where you received your degree. They only care if you can do the job.

Going into Debt for Your Wedding

Having a giant wedding is a dream for a lot of couples. Unfortunately, that dream comes at a price. According to CNBC, the average cost of a wedding ranges from $26,000-28,000! Depending upon where you live, that cost can increase dramatically  to upwards of $70K! That’s a lot of money to be spending for one day. Rather than go into debt for your big day, consider downsizing the event instead. Skip spending the money on a reception at the 4 Seasons and put it down on a house instead. Ten years from now, you won’t care that you served ham instead of lobster at your wedding. You will care that you’ve got a house that is nearly paid off.

Spending Too Much on a Car

Once you start making a little bit of money, it’s easy to fall into this trap. Spending too much on a car can be a financial mistake that will set your savings back years. Financing a car can compound the problem even more. Saving money can be hard enough without an enormous car payment. For most people, buying a used car is a great compromise. Additionally, you don’t want to be borrowing money to pay for a depreciating asset. The only way you’ll get your money’s worth from a car is to drive it until it croaks. So, skip the car loan and always use cash to buy vehicles.

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Types of car finance : a quick guide

You are literally setting money on fire every 3-5 years?
Only finance a car you intend to keep till scrap value, thats how you get the best value. Financing a car only to sell it once its yours and go upside down again on a new one is insanity that proves you dont need to be smart to earn a lot of money.
If you want to turn them over every 3-5 get a novated lease.

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Mortgage Rate Update — Real Estate News

Mortgage rates are continuing to fall and are now at their lowest level ever, figures from the Bank of England and FCA show. Initial rate of 1.79% until 30/09/2017, then reverting to 4.49%. The 5 year ARM deals at Commerce are on the books at 3.000% with an Aprilof 3.171%.

The Jumbo 15 year loans have been listed at 3.625% with an Aprilof 3.663% today. Refinances fell 9% and purchases decreased 4%. The benchmark 15-year fixed-rate mortgage rose to 3.25% from 3.23%.

The interest rate for financing a car over a 60-month period is 4.28%. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. We’re using the example of a remortgage on a £250,000 property with a 40% LTV and a 15 year term.

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