The Bottom Line
Small business is important to Central Oregon, and to Mid Oregon. Find tips and resources for business, and information about Mid Oregon’s commercial services and business members.
COVID-19 Home Market Impacts
At Mid Oregon Credit Union, we have seen some impacts on our mortgage lending because of Coronavirus. Some are positive for home buyers, and some have created challenges. Here are a few Central Oregon COVID-19 home market impacts.
Making Home Purchasing Easier
The lending process has become much more online friendly. It is now even possible to notarize documents online. Oregon enacted HB4212a this past June, adopting remote online notarization in the state until June 30, 2021.
Other enhancements include people touring houses virtually, and even buying a house without ever being on the property. At the very least buyers are ruling out properties virtually, and then visiting only their final choice before making an offer.
Low Inventory
Inventory has been impacted because many would-be sellers are not putting their houses on the market. The thought of searching for a new property in these uncertain times has people concerned. At the same time, people that can telecommute are trying to move out of the bigger cities. This is adding to the problem of an already low inventory.
The low inventory is expected to keep the values high and the forecast is an increase of 6% according to The Kiplinger Letter (Volume 97, Number 27, July 2020). The letter also comments that while rates are at historic lows, underwriting qualifications have tightened. The tightening of underwriting and the 70% increase in applications have made it tougher to gain loan approval.
Compare More Than Interest Rate
All interest rates are not created equal. Three of the home loan offers that we reviewed recently showed the lowest rate, but when we checked fees the offers included a two percent loan charge. It is important to review carefully the offers and compare the loan estimates. If you have an offer or a loan estimate, Mid Oregon Credit Union will be happy to review the estimate with you.
Closing Times An Important Variable
Several of our members have asked that we review offers and asked about timelines to close the loan. Many lenders have longer loan processing times because of the large increase in applications.
Mid Oregon has been closing home purchases in under thirty days, and refinances in forty-five days. The secondary market loans (FHA, USDA, VA, FNMA) are taking closer to sixty days. We expect to be able to continue this responsiveness.
Mid Oregon Credit Union is ready to assist your with your home loan. To learn more or get started, please visit our website or send us an email. We look forward to helping make your home purchase or refinance a reality.
What Determines an Auto Loan Interest Rate?
Do you ever wonder about the 0% interest auto loan rates you see in car manufacturer financing ads? They are only available to select borrowers for limited loan terms. What about for you? What determines an auto loan interest rate?
Car Loan Rate Factors
A number of factors can determine the rate you’ll be offered on a car loan, including your credit score, the length of the loan, the condition and age of the car, and where you live. The largest factor of those is your credit score.
Your credit score is a numerical representation of your credit history. If you’ve handled credit well in the past by paying your bills on time, especially installment loans and credit card bills, your credit score will be higher. If your credit history is damaged or spotty, meaning that you haven’t paid your bills on time and/or don’t have much credit history, your credit score will be lower.
Getting Your Credit Score
Generally, borrowers with credit scores of 650 and above get the most favorable rates (Currently Mid Oregon is 640 and above), while those with scores of 550 and below get the worst rates. Before buying a car, obtain a copy of your credit score from a credit bureau or credit scoring company such as Fair Isaac, creator of the FICO score, at myfico.com.
Mid Oregon Credit Union members who enroll in online banking have access to their credit score for free, in our Credit Savvy resource.
Does the Length of the Loan Matter?
With some lenders, loans with shorter terms often get the best rates, while longer-term loans receive less-favorable terms. For others, like Mid Oregon, the rate is the same regardless of the number of months financed. You save money on shorter terms because you will pay fewer dollars in interest, so it’s often a better deal for you.
However, those where length of the loan factors in, it is another factor in determining the interest rates. Loans with shorter terms-24 or 36 months-get the best rates (Those 0% ads), while longer-term loans of 48, 60, or 72 months receive less-favorable terms. This is because the value of a car depreciates fairly rapidly; and the longer the loan, the less the car is worth. With lengthy loans of 60 or 72 months, there is a good chance that during the last one or two years of the loan, you will owe more on the car than it is worth. This is especially true when you put little or no money down.
Does New or Used Matter?
Interest rates for new car loans are can be lower than for used car loans. Again, Mid Oregon has the same rates for new or used. The amount we finance would be based on the used car value.
When certain lenders factor in higher used rates, this is because a new car holds its value better than a used car, which is more likely to experience mechanical problems than a new car. In some cases, your geographical location can also affect the interest rate you receive.
To learn more about Mid Oregon’s auto loan options for you, including rates, visit our website, email us, call us at (541) 382-1795, visit a branch or start our online loan application.
Want to check out some numbers? Use our Loan Calculator and our Vehicle Affordability Calculator.
Free Shred Day Is Happening!
Each of the last many, many years, Mid Oregon has teamed up with Republic Services to provide free personal shredding for our members and the community. The first Saturday after taxes were due around April 15 was a popular and practical time for the event. This year, COVID-19, and the subsequent change in the tax due date, caused us to cancel the event in April. However, based on state guidelines and timing, we have rescheduled the event for July 18: Free Shred Day is happening!
Supporting Healthy Beginnings!
Although the shredding services are provided at no cost, Mid Oregon will still be accepting donations to benefit Healthy Beginnings. Healthy Beginnings offers no-cost health and developmental screenings for preschoolers to ensure local children enter kindergarten ready to learn. Learn more about Healthy Beginnings at www.myhb.org.
Safely Dispose of Sensitive Documents
Shredding personal documents helps Central Oregonians stay protected from fraud and identity theft. This free event is intended for private residential document shredding only—no commercial or business shredding provided. Shredding is limited to 3 boxes or bags per vehicle. Personal documents with staples and paper clips are accepted. On Saturday July 18, you can participate at four Mid Oregon Credit Union locations:
9:00 a.m. to 11:00 a.m.
- Bend Olney Branch – 202 NE Olney Avenue (near Black Bear Diner)
- Madras Branch – 395 SE Fifth Street (at Fifth and “F” Streets)
12:00 p.m. to 2:00 p.m.
- Redmond Branch – 2625 SW 17th Place (next to Bi-Mart)
- Prineville Branch – 305 NE Hickey Farms Road (in front of Bi-Mart)
Additional Important Information
Ensuring the safety of our volunteers and shred participants, and complying with social distancing requirements, enables us to be sure Free Shred Day is happening. We are putting the following steps in place:
- Staff and Volunteers will wear masks and gloves
- Vehicles will move to the designated location at the branch
- People bringing shredding will place their own materials into the bins provided on site
- Mid Oregon staff and the shred operator will take the bin to complete the shredding
- To support Healthy Beginnings donations, a jar will be on a table, with a HB representative stationed nearby. They will answer questions about their no cost health and developmental screenings for local preschool children.
- Participants can drop cash or check donations in the jar- all are appreciated! Online donations can also be made.