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.
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!
Is Your Best Auto Loan Better Than 0%?
When it comes to auto loans, a 0% interest rate is a head-turner, but it’s not always the best deal. It’s not always your best auto loan.
Car dealerships generally advertise 0% offers in the summer when they’re looking to make room in the showroom for newer models. The offers come from the financing arms of the large auto manufacturers, which unlike traditional lenders profit directly off the sale of the car and don’t necessarily need the interest revenue.
The New York Times reports that only about 10% of consumers actually qualify for 0% interest loans, which require pristine credit—usually a FICO score of 720 or higher. And the loans typically are reserved for a limited number of models and are not available if you’re shopping for a used car, which obviously tend to cost less than newer models.
These 0% loans often are paired with shorter-term loans, which cost you less overall but mean a higher monthly payment. Before you head to the dealership, to get your best auto loan keep these points in mind:
* Look at all available deals. Check for other offers, such as cash back. If you can get a rebate–which lowers the overall price of the car–paired with a low-interest loan, it may save you more than the 0% financing. So be sure to crunch the numbers with an online calculator, such as the one on Mid Oregon’s website.
* Negotiate the price. Before you get to the interest rate, finalize a sale price and stick to it. Don’t feel pressured to accept expensive add-ons. Once the sale price is established, then talk about financing.
* Get preapproved for a loan at your credit union. Heading to the dealership with a firm offer in hand will give you a point of comparison and puts you in a stronger negotiating position. Credit unions, as not-for-profit financial cooperatives, offer competitive rates.
To get started on your pre-approval, call Mid Oregon at (541) 382-1795, email to info@midoregon.com, inquire online or visit a Mid Oregon branch in Central Oregon. You can also get started with our online loan application.