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.
Devise a Down-Payment Plan
Questions About Buying a Home
If you’re thinking about buying a house in the next year or two, you may wonder what you’re getting into. Among those questions might be: How big a down payment do I need? Where will I get the money?
Here are a few ideas about how to build your down payment:
Save More Cash
• Build your savings. Save a certain sum every payday through payroll deduction or other automatic savings plan at your credit union.
• Get a second job for a year or two.
Help From Family
• Ask for family help. Anyone can give up to $12,000 per year to another person, without federal gift tax consequences for the giver or an income tax burden for the receiver.
• Borrow from family. Be sure you have a written, enforceable note. Follow the Internal Revenue Service requirements on the minimum interest rates the lender must charge.
• Share equity. Your parents could contribute all or part of the down payment, in return for a share in ownership of your home.
Borrowing From Your Future
• Tap your IRA. A first-time home buyer can use up to $10,000 of IRA funds for a down payment, with no early-withdrawal penalties. But you may owe taxes.
• Borrow from your 401(k). Check with your employer to find out the rules for your plan. A note of caution: If you use money from your 401(k), you’re losing the benefit of compounding on the money you’ve borrowed. This can mean thousands of dollars—or more—over the years that you’re repaying the loan.
Local Assistance Programs
• Look into first-time buyer assistance programs. State and local programs exist in many areas. These can be hard to find; be prepared to do some digging. In Central Oregon, NeighborImpact may have some programs to fit you.
Even if you’re a year or more away from buying, sit down with a Mid Oregon Credit Union lender now to come up with a down-payment plan. Stop by, email or call today at (541) 382-1795.
How About a Financial Check-up?
Review Your Financial Situation Regularly
To stay in good physical health, most people get a medical check-up on a regular basis. To keep your finances manageable, they need a regular financial check-up as well. It’s particularly important to review your finances if there have been changes to your life in the past year. Things like changes in income, marital status, any medical emergencies, or if you’ve had a baby.
You might have certain goals, like saving for a down payment on a house or planning to retire early. If so, it’s absolutely essential to review your financial situation multiple times throughout the year.
What should you be looking at specifically?
Are your expenses exceeding your monthly income?
Create a budget and track your monthly expenses. Are you spending more than you bring in? Are you using credit cards to support your lifestyle? If your expenses are getting out of control, use the budget to determine where you need to rein in your spending. Consider using cash or your debit card for your entertainment expenses or luxuries instead of a credit card.
On March 12th, Mid Oregon Credit Union is presenting a free workshop in Bend, entitled “Build a Basic Budget: The Five-Step Spending Plan”. Workshop Details: Wondering where your money goes? You’re not alone. Join Mid Oregon’s Catherine Christie as she helps you to develop a personal spending plan—not just a budget— that you can live with. Regain control and achieve your financial goals! Click HERE to learn more and RSVP.
Credit Card debt
Ideally, you should pay off the balance in full each month. If you cannot, try to keep your balance less than 30% of your total credit amount. To control your credit card expenses, give yourself a 24-hour rule: If you see something you want to buy, give yourself 24 hours before purchasing it and see if you still need it.
If you need help with credit card debt, our Mid Oregon loan officers can help. They would discuss your current situation, and share available options to lower the cost of your debt.
Insurance
If you’re a renter, do you have renter’s insurance? In the unfortunate scenario where your building were to have a fire or your apartment is broken into, this coverage will be well-worth the expense. If you don’t have health insurance through your work, consider purchasing a fixed benefit indemnity plan or a short-term medical plan. These will cover medical expenses in the event of a serious illness or injury.
Doing an insurance check-up is one of the easiest ways to learn money-saving options as well as ensure you are well covered for your situation. Mid Oregon partner Cascade Insurance Center is a local insurance broker who can help you evaluate your needs.
Emergency fund
Do you have one? If not, consider starting one, depositing a specific amount into that account with each paycheck. Start by putting at least 1% of each paycheck into an emergency fund. Aim to save enough to cover 3 to 6 months of household expenses. This will provide you with peace of mind in the event of a sudden loss of income or a major repair bill.
The Mid Oregon Credit Union Saver’s Club is perfect for starting your emergency fund. Saver’s Clubs can also help build more quickly the one you already have. You may be familiar with Christmas Club accounts? While similar the Saver’s Club has more flexibility and can be used for other purposes as well! Just visit Mid Oregon’s Savings Accounts page, and click on the “Certificates” tab to see the details.
So get your financial check-up done soon, and move forward on your way to better financial health!
Six Signs It Is A Scam
Presentation at Mid Oregon’s Annual Meeting
On Saturday, February 9th, Mid Oregon Credit Union held its 62nd Annual Meeting at The Riverhouse on the Deschutes Convention Center. Almost 200 people braved blizzard-like conditions to attend, and they were treated to a very informative presentation.
Billie McNeely, State Elder Financial Exploitation Specialist with the State of Oregon Adult Protective Services, engaged the audience with “Six Signs It Is A Scam”. Below, we are sharing the main points of her presention.
1. Scammers Contact You “Out Of The Blue”
It could be a knock on the door, a phone call, or a piece of mail you weren’t expecting. For example, you didn’t think you owed the IRS or a debt collection agency money, but they called claiming you could be in trouble if you don’t pay.
2. Scammers Claim There Is An “Emergency”
A scam might warn that if you don’t respond immediately your prize winnings will be lost, or that a relative or friend is in trouble in a foreign country. If something prompts immediate action, be cautious.
3. Scammers Ask For Your Personal Information
Scammers often pose as banks, healthcare providers and government officials asking for identifying personal or financial information. Anytime someone asks you for this information, be suspicious!
4. Scammers Want You To Wire Money
You may be asked to wire money or purchase pre-paid debit cards. This is the easiest way for scam artists to get their hands on your money, and it’s almost impossible to get it back once it has been sent. Don’t do it!
5. Scammers Tell You To Keep It “Secret”
By asking you to keep a transaction secret, scammers know you won’t have to respond to questions from family and friends who might see through the scam. Check with someone you trust before acting.
6. Scammers Make It Sound Too Good To Be True
If it seems too good to be true, it probably is! Above all, use this simple mantra to help you detect and avoid scams. It’s always better to be cautious than to be a victim.
Mid Oregon is very concerned about our members and the communities of Central Oregon. For additional resources and information, visit our Security and Fraud Center, and stay up-to-date with Stickley on Security.
For more information on scams, or to file a complaint, contact the Oregon Department of Justice online at www.oregonconsumer.gov or call 1-877-877-9392.