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.
Teenage Driver’s Dilemma: How to Afford It
The Teenage Driver’s Dilemma…
Learning how to drive a car is one of the big milestones in a teenager’s life. Learning how to pay for its upkeep isn’t as exciting, but just as necessary. This teenage driver’s dilemma doesn’t have to be insurmountable. Here are a few simple tricks to help you keep your wallet happy.
New or used? Buying used is usually a no-brainer for most teenagers. Talk to family and friends to see if they are willing to sell their cars at a discount. Mid Oregon has a resource for new or used vehicle searches, AutoSmart. Kelley Blue Book may also be helpful.
Insurance is a Big Deal
First insurance premium. Most teenagers stay on their parents’ insurance plan, but it may be cheaper to get insured elsewhere. Shop around and look for the discounts most companies offer.
Most insurance companies offer discounts if you:
• Take driver’s ed classes.
• Keep up with your school work—good grades = good discounts.
• Drive safely and keep your driving record clean.
Fuel Can Eat Up Your Cash
Save on gas. When going to fill up, shop around and make sure you’re getting the lowest price. You can use an app like GasBuddy to help you find the cheapest gas in your area. At the pump, make sure you’re using the lowest grade recommended for your car—usually the big button with an 87 on it. Fill up when it is cooler, such as in the early morning or at night. Gasoline is measured and sold by volume. When it’s cold out, the gas is denser, so you get slightly more for your money.
Make your car more efficient
• Make sure your gas cap is on tight so no fumes can escape from your tank.
• Change the air filter frequently to keep your engine from working harder than it has to.
• Keep the proper air pressure in your tires so your car drives efficiently.
• Lighten the load you carry in your car. The heavier the car, the less fuel efficient it is.
• Drive the speed limit—it’s better for your gas mileage, helps you avoid pricey speeding tickets, and is safer.
• Don’t rapidly speed up or slow down. You’ll save gas by gradually getting up to speed.
• Minimize the time you spend idling. When you pick up friends, turn the car off while you wait for them.
What About Maintenance?
From tune-ups to major repairs. Labor is usually the biggest cost of taking your car to the shop, particularly for simple fixes, like replacing a bulb, or routine maintenance, like oil changes. If you are handy, learn how to do the simple tasks yourself. If you must take your car to a professional, shop around for the best deal.
Most important: Put aside some money in an emergency share savings account at Mid Oregon Credit Union to pay for unexpected repairs. Saving for emergencies is key to keeping disruption, and costs, to a minimum.
Refinance Your Home At a Safe Distance
Refinance Your Home While Avoiding Crowds
Mortgage interest rates are very low. and many of us want to take advantage of the potential savings a home refinance can bring. At the same time, people are trying to stay away from crowds and unnecessary interaction with people. Can You Refinance Your Home At a Safe Distance?
There are two questions to consider when determining whether to refinance during this time: First, do I have to risk being in public places and possibly being exposed to any germs? And second, will I miss out on saving money from having a lower interest rate on my mortgage if I don’t refinance?
How Much Can You Save?
How much could you save by refinancing now? Every situation is different, but depending on your current interest rate, the answer is likely “a significant amount”.
For example, a difference of 1% on a $250,000 mortgage loan can save $51,876 over thirty years. This assumes that the loan runs the full thirty years and all payments are made on time. Most of us would agree that keeping $50,000 more of your money over 30 years deserves a further look.
Can You Keep A Safe Distance?
But what about the health risk of going through the refinance process right now? We can help mitigate much of that risk with solutions we have in place.
At Mid Oregon Credit Union we offer a no-cost phone review of your current situation and goals. The review will determine if now is the right time to refinance your home loan. You can ask for a mortgage review by calling (541) 382-1795 or emailing realestateloans@midoregon.com.
Remote Home Loan Steps
If your financial situation is improved by a refinance, then we can accomplish this with minimal direct contact.
• Applications can be taken securely online or by phone
• Documents can be gathered online or by mail
• Disclosures can be signed electronically using Docusign
• Many loans qualify to use online appraisals
• Onsite appraisals require only limited contact
• Loan Closing can be scheduled at your home with a mobile notary
How Low Are Rates Today?
Rates are low, but unfortunately misinformation about specific rates is out there. As always, if a deal (rate) sounds too good to be true, it probably is.
While you are shopping for rates be aware of websites offering low rates that cannot be achieved. Each situation is different and applicants with different loan-to-values, credit scores, debt levels and property types will receive different rates. At Mid Oregon Credit Union you will get an interest rate and fees from someone you trust. Remember to review the interest rate, the annual percentage rate and the fees on your loan estimate.
We can also help you review loan estimates from other lenders. It might save you a lot of time, hassle, and maybe save you money, too. Contact our Home Loan team at (541) 382-1795 or email us at realestateloans@midoregon.com to learn more.
What’s the Difference Between a Tax Credit and a Tax Deduction?
At Mid Oregon Credit Union we realize that properly handling income taxes helps make our members financially successful. For those of us who have done our taxes for years, we have many of the tax basics down. But what about those who find themselves newly facing the tax challenge? Understanding tax concepts and terms can be important. One question, “what’s the Difference Between a Tax Credit and a Tax Deduction?”, is significant.
TurboTax Answers The Question
We’re glad to be partnered with TurboTax through the I Love My Credit Union Rewards program, where they do the heavy tax preparation lifting. If you’re not using TurboTax, the difference between a tax credit and a tax deduction is important to understand.
“Just write it off.”
“Go ahead and deduct it.”
“I think there’s a tax credit for that.”
Although you might have heard or even uttered one of the sentences above, have you ever wondered what it actually means? While both tax deductions and tax credits can save you a significant amount of money on your taxes, they work in significantly different ways.
What is a Tax Deduction?
A tax deduction is a result of a tax-deductible expense or exemption which reduces your taxable income. A common tax deduction on your federal income tax return is the standard deduction. An example of how this works: If your income was $50,000, your standard deduction (if single or married filing separately) would reduce your taxable income by the 2018 standard deduction of $12,000, so your taxable income would now be $38,000.
What is a Tax Credit?
Unlike tax deductions, tax credits are subtracted from your tax liability (not taxable income). A common tax credit is the Child Tax Credit. If you have a qualifying child, you can take a credit of up to $2,000 per child against the taxes you owe in 2018. If you have a total federal income tax liability of $3,500, the Child Tax Credit for one child would reduce that tax liability to $1,500.
Is a Tax Deduction Better Than a Tax Credit? Is a Tax Credit Better Thank a Tax Deduction?
If you were ever faced with a hypothetical choice between a $100 tax deduction and a $100 tax credit, you would most likely prefer to receive the credit. Unlike a tax deduction, a $100 tax credit reduces your tax dollar-for-dollar ($100). On the other hand, a tax deduction reduces your taxable income by $100. The resulting amount of tax you save depends on your marginal tax bracket (in everyday language: your tax bracket). If you are in the 24% tax bracket in 2018, a $100 tax deduction reduces your taxes by $24. On the other hand, a $100 credit would reduce your taxes by $100.
TurboTax Has You CoveredDon’t worry about trying to figure out which tax credits or deductions you should take, or if you should itemize or take the standard deduction. TurboTax will ask you simple questions about you and give you the tax deductions and credits you are eligible for based on your answers to get you the biggest tax refund. As a credit union member, you can save up to $15 on TurboTax federal products. Click here to access TurboTax and your savings! |
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Interest in learning more ways to save on your taxes? Talk to our Mid Oregon Credit Union team and Mid Oregon Wealth Management to learn more!