Your MoneyJune 2020

DID YOU KNOW?DID YOU KNOW?Our mortgage officers are still available to meet with you in-person or over the phone to help you refinance your mortgage! Call 717-709-2580 to schedule an appointment today!

Should You Refinance Your Mortgage?Mortgage refinancing is a hot topic in the homeowner world. With interest rates being some of the lowest we’ve seen in years, should you refinance? How do you know if you should refinance?

How does refinancing a mortgage work?Refinancing a mortgage starts just like any other loan – you have to find out if you qualify and gather your information together to show your financial institution that you’ll be a good borrower. There are a few specific qualifications you have to meet to refinance a mortgage: •You’ve maintained and paid for your original mortgage for at least 12 months •You have 10-20% equity in your home •You have a regular income and a good debt-to- income ratio •You have a good credit scoreOnce you’re approved, you’ll take out a new loan that will cover the amount you still owe on your original mortgage – or more, depending on the type of mortgage refinancing you’re doing.

How can you benefit from a refinance?There are a few different reasons why you might want to consider refinancing your mortgage, all with the end result of having greater financial independence.

Shorten the term of your mortgageIf the length of your mortgage is over 15 years, refinancing is a great way to hit the goal of having a 15-year mortgage. Shortening your term through a refinance can lower the amount of interest you pay over the life of your loan and build equity in your home at a faster pace.

Secure a lower interest rate on your mortgageIf you have a high interest rate on your mortgage compared to the current market rates, refinancing could be a smart move towards financial independence. Generally, if you can refinance at an interest rate that is 1-2% lower than your current interest rate, you should consider it.

Refinance out of an ARMARM’s, or Adjustable Rate Mortgages, are great for short term needs while the interest rate is fixed. When the markets

fluctuate, however, an ARM can end up costing you a lot more money than you originally planned. If you have an ARM and are planning on staying in your home for a long time, refinancing to a fixed-rate-mortgage could be a great financial move.

Refinance to consolidate debtThe low interest rates of today’s mortgage loans also makes them a financially savvy way to consolidate debt. This would be done in what is called a “cash-out” mortgage, in which you borrow more than you owe on your home.

How to know if refinancing is worth itThe burning question still in your mind is probably – “is refinancing my mortgage really worth it?” When you refinance a mortgage, you still have to go through an appraisal, the paperwork, and the closing costs, so how do you know if you are making a smart financial move?

Calculate your break-even point for a mortgage refinanceThe best way to know if you’re making a good choice by refinancing your mortgage is to complete a break-even analysis. You do this by dividing the total closing costs by the amount you save each month with your new payment. For example, say your new mortgage payment saves you $200 a month and closing costs were $2,500. $2,500/$200 in savings = 12.5 months until you break even. As long as you plan on staying in your house longer than it will take you to break even, refinancing is a good financial move.

www.patriotfcu.org

June 2020Equal Housing Lender This Credit Union is Insured by NCUA

Making Banking Convenient During A PandemicLobby AppointmentsIf you’re unable to complete a transaction via the contact center, online banking, ATMs or drive-up services at a branch, you could schedule an in-person appointment at a branch, ahead of time. To learn more visit patriotfcu.org/appointments.

Mobile DepositsYou can deposit checks from your smartphone 24/7/365! All you have to do is choose the account you want to deposit into, enter the check amount, take photos of the front and back of the check and voila! You can find more detailed directions on Patriot’s website, or call our contact center for additional assistance.

Card ControlsScams are increasingly rampant right now, so taking advantage of card controls on Patriot’s mobile app can help keep you safe. Card controls allow you to turn your card off, either temporarily or permanently, if you see fraud in your account, lose your card, or if it is stolen. You can also activate new cards hassle-free.

Transfers and PaymentsIf you need to make a loan payment, transfer money between your accounts, or even transfer money to other Patriot members, you can do all of this from the safety and comfort of your own home. Use the “transfer money” section of eBranch or Patriot Mobile to complete your transfer with ease.

Pick Your DenominationEnjoy the convenience of choosing your denominations (i.e. $5, $10 and $20 bills) when receiving cash at select Patriot “Smart ATMs”. Learn more at patriotfcu.org/ATM-upgrades.

Transfer Your Balance

Save with a Patriot VISA Credit Card

· No annual fee or balance transfer fee· Low minimum payments – only $25 or 1.5% of

balance, whichever is greater· Chip-enabled (EMV) cards offering extra security· 26-day grace period

Apply online at patriotfcu.org, call 888-777-9982, or visit a local branch.

1 APR = Annual Percentage Rate. Introductory APR for Balance Transfers is as low as 1.64% until 6/30/21 for applications submitted through 12/31/20, with NO Balance Transfer Fee. Rate will return to the normal rate based on your credit score after 6/30/21.2 APR at the normal variable rate is as low as 7.49% based on your credit score. The APR will vary with the market based upon The Wall Street Journal Prime Rate which was 3.25% as of March 16, 2020 plus 4.24% for credit scores of over 735. All loans are subject to credit approval. Programs, rates, terms and conditions are subject to change without notice. Foreign transaction fee of 1% of the amount of the transaction in U.S. dollars. VISA® is a registered trademark of Visa International Service Association. Must be a member.

THIS CREDIT UNION IS FEDERALLY INSURED BY THE NATIONAL CREDIT UNION ADMINISTRATION.

Until 6/30/21, for Balance Transfers Conducted Through 12/31/20

Intro APR1

APR2

Thereafter

as low as7.49%

Call 888-777-9982 or visit patriotfcu.org to learn more.

INSURED BY NCUA

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