U.S. Treasury amends proposal to track nearly all bank accounts
Should I Refinance my Mortgage?
Should I Refinance My Mortgage?
Refinancing your mortgage is usually worth it if you’re planning to stay in your home for a long while. That’s when a shorter loan term and lower interest rates really start to pay off!
How to Calculate Your Refinance Savings
Do a Break-Even Analysis
Will You Stay in Your Home Long Enough to Benefit From a Refi?
When Should I Refinance My Mortgage?
With your ARM having adjustable interest rates, you might start off with the first few years at a fixed rate. But after that, the rate can adjust based on a lot of factors, like the mortgage market, and the rate that banks themselves use to lend each other money.
If your mortgage has a higher interest rate compared to ones in the current market, then refinancing could be a smart financial move if it lowers your interest rate or shortens your payment schedule.
If your original mortgage is a 30-year term (or more), then refinancing is a good way to get to the ultimate goal of locking in a 15-year fixed-rate mortgage—ideally with a new payment that’s no more than 25% of your take-home pay.
Is It Worth It to Refinance?
- Refinance application, new home appraisal and title search
- Home inspection fee
- Lender’s attorney review fee
- Origination fee
- Points fees
When Is Refinancing a Bad Idea?
- Get a new car
- Remodel your kitchen
- Pay off credit card bills
- Roll up other debt (credit cards, student loans, etc.) into a refinanced mortgage
What if I Can’t Pay My Current Mortgage?
We are grateful for the blessing and privilege of meaningful work. Every person in the Unity Family – bankers, directors, advisors, owners, community members – contributes to our work together. Every person in this family is valued, included as a necessary contributor, and worthy of our respect and appreciation.
Your Money is Safe and Sound in a Bank: Here’s Why
Some people spend their whole lives trying to figure out what their purpose is. Meaningful work has been continuously recognized as a key employee engagement driver. Deloitte reported in its’ Talent 2020 series, the survey results of 560 employees from virtually every major industry and global region. One of the top 3 engagement drivers that they identified: meaningful work.
In a recent Harvard Business Review, it was noted that more than 9 out of 10 employees, are willing to trade a percentage of their lifetime earnings for greater meaning at work. Across age and salary groups, workers want meaningful work badly enough that they’re willing to pay for it.
On January 20th, 2020, more than 130 Unity Bankers and board members gathered in St. Cloud to focus on meaningful work. Participants were asked to list 5 tasks that they do each day and determine whether those tasks added meaning to their day. If the answer was no, the participant was challenged to think whether the task could be eliminated, automated or transferred to a team mate. At the conclusion of this thought provoking exercise, each participant wrote their idea of meaningful work on a puzzle piece and all of the 130 pieces were joined together in a giant jigsaw puzzle.
The importance of excellent customer service was further reinforced at the Unity gathering when participants listened to John McHugh talk about the employee first principles and the service standards of Kwik Trip. It is not enough to just have great customer service but it is important to go the next step of creating loyal customers.
“It was inspiring to see how many of my fellow employees had the same meaningful work statement: caring for my customers.” Kay Maurstad, Unity Bank Teller
In the Harvard Business Review noted above, they found that employees with very meaningful work, spend one additional hour per week working, and take two fewer days of paid leave per year. With regards to the sheer quantity of work hours, organizations will see more work time put in by employees who find greater meaning in that work. More importantly, though, employees who find work meaningful experience significantly greater job satisfaction, which is known to correlate with increased productivity.
Another benefit to meaningful work comes in the form of retained talent. This same Harvard Business Review noted that employees who find work highly meaningful are 69% less likely to plan on quitting their jobs within the next 6 months, and have job tenures that are 7.4 months longer on average than employees who find work lacking in meaning. This can add real dollars to the bottom line.
Meaningful work only has upsides. Employees are more productive, quit less, and gravitate to supportive work cultures that help them grow. Creating meaningful work in our local communities can help us be sustainable. It is something worth considering.
Five Plans to Pay Down DebtHave credit card debt? You're not alone. According to analysis from NerdWallet, the average U.S. household owed just under $7,000 in revolving credit card debt (the balance carried from month to month). Credit card debt has increased almost 6% in the past year and more than 34% in the past five years. Unlike more benign debt like a mortgage—where you gain assets (equity in the house) as you pay off the debt—credit card debt is a drag on your finances with no benefit to you. With interest rates rising, now is the perfect time to make a plan for becoming debt-free. There are several strategies you can use to pay off your credit card debt in manageable increments. Here's a look at five of the most effective options:
- Follow a Budget
The first step in paying down debt is to create a monthly household budget. This will give you an accurate view of how much you make, how much you spend, and how much you can afford to put toward paying off debt each month. It can also help you see where you can redirect some money each month toward paying down your credit card debt. One popular example is to commit to skipping the morning coffee run every day and putting the extra toward your debt. For example, if you spend an average of $3.00 on your coffee every weekday morning, that's $60 every month you could put toward paying down your debt. That's $720 in a year! If you're not sure how to set up a budget or track your expenses, ask your bank. Most financial institutions have tools built into their online banking software that can help you.
- Increase Your Monthly Payments
The most effective plan for paying down credit card debt is to pay more than the minimum balance every month, even if it's only by a few dollars, and always pay on time. By doing this, you will decrease the amount on your credit card bill that's only interest on what you didn't pay from last month, and you'll avoid costly late payment fees that make it harder to pay off your balance each month. If possible, increase the amount you pay each month to cover more than what you owe for that month. For example, if your total credit card bill is $1,000 and you spent $500 this month, pay $750 even if the minimum payment is only $25.
- Tackle the Highest Interest Rate First
If you're carrying debt on multiple credit cards, a great plan is to focus on paying down the one with highest interest rate first. This approach is effective because it gives you the most bang for your buck. The higher the interest rate, the more expensive the debt is and the more it will cost you in the long run. For example, if you owe $3,000 on a 20% interest credit card and $4,000 on a 15% card, this strategy advises paying off the first credit card debt first because it will have a bigger long-term impact than paying the higher balance first.
- Sort Debts by Principal Size
Another possible strategy is to sort your debt by the principal size (the amount you still owe, not including interest). One school of thought says to pay off the largest principal first, because it typically has the largest monthly payment. Therefore, once that debt is paid off, you'll have more money left each month to apply to other debts. On the other hand, some think that paying off the smallest principal first works better. That strategy is most effective if you've experienced a financial windfall (such as a higher-than-expected tax refund) and are able to completely eliminate one of your debts. For example, if you've been carrying $2,500 on a credit card that you don't use anymore, using your tax return to completely pay off the card and then cancel it will be more beneficial than spreading that money around to all of your debts and then continuing to make just the minimum payment on that credit card.
Finally, another plan that works very well for many people is to consolidate your debts into a single payment. Sometimes done by taking out a home equity loan or a personal loan, consolidation is an effective way to combine all of your individual debts into one loan with one payment, ideally at a better interest rate than what you were paying. This is a common tactic for credit card debt held on multiple cards with similar interest rates. If you are able to consolidate, it may feel like you've just eliminated a lot of debt, but be sure to control your spending to avoid piling more debt on top of what you already owe.
- Get a feel for it. Unlike the cotton-linen blend that real dollars are made of, fake bills are often made of high-quality paper.
- Look at the color. Counterfeiters typically use an inkjet printer and have a hard time getting the color right. Typically, fake bills are a bit too dark.
- Test the color-changing sections. Take a bill of $10 or and look at the denomination number in the bottom right corner. It should appear copper when you hold straight up and down. Now tilt it 45 degrees away from you—the color will change to green on a real bill. If you happen to have a $100 note, pay attention to the brown picture of the Liberty Bell over a lighter brown inkwell. When you tilt the bill, that section will change, too. If it stays one color, you have counterfeit money in your hands.
- Hold the bill to the light. Every $5 bill and higher has a couple of security features that aren’t always visible. If you hold your bill against the light, though, you’ll see some new developments. Each one has a security thread that goes in a straight line from top to bottom but on a different side of each note. Plus, you should also see a watermark of the same portrait that’s on the front of the bill—unless it’s an imposter.
- Check the portrait quality. When money is made, the U.S. mints use a process called intaglio printing to put the pictures on the bills. The ink goes in the engraved areas, instead of on the raised areas of the plate, like an inkjet would use. That’s why fake bills look flat, while real ones have an almost 3D quality. Experts suggest that it is like looking at a painting vs. looking at a picture.
- Hunt for weird phrases. Normally the top right corner on the front says “the United States of America”, but at second glance, you might notice some counterfeit money says something weird, like “for Motion Picture Use Only.” By law, prop money made for movies needs to be either bigger or smaller than a real bill and have only one side printed. Some movie sets don’t follow those rules, though, and print convincing fake bills for the screen.
- Check the border. Because the borders are so intricate, a counterfeiter’s bad print job might mess it up. The line could look blurry, or the color could be darker than normal.
- Pick at the fibers. Give the white space on your bill a close look. The cotton-linen blend U.S. currency is made of has little blue and red threads sitting randomly in each note, and sometimes the fibers will even poke out a bit. It might be hard to tell without a magnifying glass, but even if a fake bill looks like it has the strings, those “threads” are really just pictures printed flat on the counterfeit money.
- Compare the serial number to other bills. If you’re suspicious of the big stack of cash you just received, double check the security numbers. Most counterfeiters are making multiple copies of the same bills. Often, they’ll have three or four originals, but some will have just one, meaning every fake note will have the same serial number. It might be odd if multiple bills have the exact same serial number.
- Keep your guard up. Whether you’re holding a yard sale or selling an old car, be cautious when taking cash from strangers. Sure, you’ll want to be careful if you’re accepting hundreds or thousands of dollars in cash, but even little splurges could leave a chance you’re getting duped. A big red flag is someone trying to purchase something of low value in high denominator bills who wants change.
Tax season is always seems to sneak up on us. Once year end is over and all of the resolutions have been made (and some broken), it is time to plan for 2020 and prepare for spring taxes. Organizing and reviewing your finances can help reduce stress during tax season, too! Here are a few tips to keep in mind:
Dispose of old records
Go through all of the paper files and receipts you've saved over the past year and place everything into either the "File/Save" or "Toss/Shred" pile. Items that should be shredded include ATM receipts, bank deposit receipts and credit card statements, once the accounts are current. Utility statements can also be discarded after they've been paid. This helps protect you against identity theft as well as clutter. If possible, switch to e-statements to reduce the amount of paper lying around. Save pdf files or copies of the e-statements until they have been paid, then archive or delete them. Note: Tax information should be kept for seven years, so be sure to put those in the "Save" pile.
Update your beneficiaries
Look back at insurance and retirement account policies to make sure the beneficiaries are current. If your marital status recently changed or you experienced the loss of a spouse or child it is especially important to update your beneficiary information. Make sure the money will go where you want it to go if it gets distributed today, not where you wanted it to go when you first signed the policy. This is also a good time to reassess your insurance coverage - is the amount you originally signed up for still enough to protect you and your family?
Cash in your rewards
Go through any credit card points, airline frequent flyer miles, store credits, loyalty club memberships, etc. Schedule when you'll need to use these benefits by before you lose them. If you're currently paying a fee to participate in these programs (such as an annual fee for a credit card) do the math to figure out if the reward outweighs the fee. If it doesn't, consider dropping the program.
Organize your credit cards
Cut up and cancel cards that you haven't used in six months or more, especially if they carry an annual fee or have a higher interest rate than your other cards. You'll have more space in your wallet and fewer bills to worry about. If you're trying to eliminate debt, try to stick with just one or two credit cards or a debit card. If you're carrying debt on multiple cards, talk to your local bank about the possibility of consolidating that debt into a single payment so you can close the extra card accounts.
No matter what areas of your personal finances need a little dusting off, taking a little extra time this spring to work on your money issues will make budgeting throughout the rest of the year much easier.
By the end of the year, an estimated 1.92 billion people will be digital buyers. That means around 25% of everyone on the planet shops online. With that many consumers on the web, it’s no surprise that criminals are flocking to the digital space, too. You can fight back against the hackers and frauds who may try to steal from you with a few precautions and common sense. Protect your wallet when shopping online by paying attention to the tips below:
Monitor Your Accounts
Proactively monitoring your financial accounts (such as bank and credit card statements) can help you catch errors and spot potential fraud at the first sign.
Always Think Before You Click
To avoid infecting your computer or mobile device with malicious software, never click on a link to a deal or special savings on a social networking site or in an unsolicited email.
Avoid Public Wi-Fi
Online purchases require transmitting your credit card, bank account information, or other financial information over the internet. Using a public Wi-Fi connection to do so puts that sensitive information at risk. Hackers can tap into unsecured Wi-Fi connections at hotspots like coffee shops and airport terminals to capture it without you knowing. The new, more secure EMV chip cards do not protect against this kind of fraud.
Finally, take action if you hear about a data breach or other fraud that could affect your accounts by changing your passwords.
You, or someone you know, could become the victim of a growing crime in America — financial abuse of older Americans. Seniors are increasingly becoming targets for financial abuse. As people over 50 years old control over 70 percent of the nation's wealth, fraudsters are using new tactics to take advantage of retiring baby boomers and the growing number of older Americans. Senior financial abuse is estimated to have cost victims at least $2.9 billion last year alone.
Over the next two decades, Minnesota's 65 and older population will increase by 72 percent. In 2017, one in nine seniors reported being abused, neglected, or exploited. Law enforcement, advocacy groups, and Minnesota bankers are working together to prevent financial exploitation of our state's seniors, and you can help, too!
Seniors are extremely vulnerable to financial swindle due to isolation, cognitive decline, physical limitations, health problems and/or recent loss of a loved one or friends. With their significant assets, equity in their homes and steady incomes from retirement funds, older adults are prime targets for scam artists, including scammers operating on the internet, telemarketing, home repair, financial advisers and fiduciaries, and people holding powers of attorney. Unfortunately, many times family members and caretakers can take advantage of seniors in their vulnerable state.
In order to help, you need to first, understand what financial exploitation is. The U.S. Centers for Disease Control (CDC) defines elder financial abuse as "the illegal, unauthorized, or improper use of an older individual's resources by a caregiver or other person in a trusting relationship, for the benefit of someone other than the older individual." Common examples include forgery, misuse or theft of money or possessions, and use of coercion or deception to surrender finances or property.
The exploiter may describe themselves as “family caregivers”, while the truth is that they are dependent on their victims for financial assistance, housing and other support. This risk further increases when the exploiter knows where important papers are and has access to person information such as social security numbers or pin numbers.
Financial exploitation can happen in many ways. A person may have the legal authority to manage someone’s money but makes unauthorized expenditures of a vulnerable adult’s funds, or fails to use the funds for his/her food, clothing, shelter, health care or supervision. It could also be a person that has no legal authority but disposes of money or property anyway.
Financial institutions are on the front lines to help stop financial abuse of senior citizens, identifying irregularities in a customer’s financial activity and reporting it to the appropriate authorities. We all need to work together to stop this injustice.
Learn to recognize the red flags of financial abuse. Keep a close watch on your elderly family members and friends and look for signs such as unusual spending or withdrawal patterns, frequent purchases of unusual or out-of-character items, unpaid bills and/or utilities being turned off, or the presence of a new "best friend" who is accepting generous "gifts" from the older adult.
Erratic or unusual banking transactions or change in banking patterns could include any of the following:
- Frequent large withdrawals, including daily maximum cash withdrawals from ATM’s
- Abnormal nonpayment for normal services, such as utilities and insurance, indicating a loss of funds or access to funds
- Debit transactions that are not normal for an older adult
- Uncharacteristic attempts to wire large sums of money
- Closing of CDs or accounts without regard to penalties
- A caregiver or other individual showing interest in the older adult’s finances or assets
- An individual not allowing the older adult to speak for him/herself
- A caregiver not willing to allow the older adult to have a conversation alone
- The older adult shows unusual degree of fear or submissiveness toward a caregiver
- The older adult expresses fear of eviction or nursing home placement if money is not given to the caretaker
- The financial institution is unable to speak directly with the older adult, despite repeated attempts to contact the person
- A new family member, caretaker, or friend suddenly begins conducting financial transactions on behalf of the older adult without proper documentation
- The older adult abandons current relationship in exchange for new “friends”
- A sudden change in the elder’s financial management, such as a new power of attorney or a new family member or individual, and
- The older adult lacks knowledge about his/her financial status or shows a reluctance to discuss financial matters.
If you witness any of these signs of red flags, you should contact the authorities, so the situation can be investigated and the exploitation be stopped.
Unfortunately, in most cases the abuser is someone the elderly person knows and trusts. Many times the perpetrator is a family member. They may express feeling that the elderly person's belongings are rightfully theirs. The abuser may have financial difficulties such as a tendency to gamble. They may also express fears that the victim will "use up" all of their savings and deprive the perpetrator of an inheritance. Non-relatives may move from community to community in order to avoid detection. They may also try to gain access to elderly persons by masquerading as a counselor or by finding a job as a caretaker.
Below is a list of commonly reported forms of financial exploitation reported to Adult Protective Services agencies. These could be done by a person the senior knows and trusts or a stranger.
- Theft: involves assets taken without knowledge, consent or authorization; may include taking of cash, valuables, medications or other personal property.
- Fraud: involves acts of dishonestly by persons entrusted to manage assets but appropriates assets for unintended uses; may include falsification of records, forgeries, unauthorized check-writing, and Ponzi-type financial schemes.
- Real Estate: involves unauthorized sales, transfers or changes to property title(s); may include unauthorized or invalid changes to estate documents.
- Contractor: includes building contractors or handymen who receive payment(s) for building repairs, but fail to initiate or complete project; may include invalid liens by contractors.
- Lottery scams: involves payments (or transfer of funds) to collect unclaimed property or “prizes” from lotteries or sweepstakes.
- Electronic: includes “phishing” e-mail messages to trick persons into unwittingly surrendering bank passwords; may include faxes, wire transfers, telephonic communications.
- Mortgage: includes financial products which are unaffordable or out-of-compliance with regulatory requirements; may include loans issued against property by unauthorized parties.
- Investment: includes investments made without knowledge or consent; may include high-fee funds (front or back-loaded) or excessive trading activity to generate commissions for financial advisors.
- Insurance: involves sales of inappropriate products, such as a thirty-year annuity for a very elderly person; may include unauthorized trading of life insurance policies.
If you suspect that elder financial abuse or exploitation has occurred, you should contact your local authorities or your local Adult Protective Services agency.
There are simple steps that can be taken to safeguard personal information and protect aging men and women from financial abuse. Below are a few:
- Plan ahead to protect your assets and to ensure your wishes are followed. Talk to someone at your financial institution, an attorney, or financial advisor about the best options for you.
- Shred receipts, bank statements and unused credit card offers before throwing them away.
- Carefully choose a trustworthy person to act as your agent in all estate-planning matters.
- Lock up your checkbook, account statements and other sensitive information when others will be in your home.
- Order copies of your credit report once a year to ensure accuracy.
- Never pay a fee or taxes to collect sweepstakes or lottery “winnings.”
- Never rush into a financial decision. Ask for details in writing and get a second opinion.
- Consult with a financial advisor or attorney before signing any document you don’t understand.
- Get to know your banker and build a relationship with the people who handle your finances. They can look out for any suspicious activity related to your account.
- Check references and credentials before hiring anyone. Don’t allow workers to have access to information about your finances.
- Pay with checks and credit cards instead of cash to keep a paper trail.
- Feel free to say “no.” After all, it’s your money.
- You have the right not to be threatened or intimidated. If you think someone close to you is trying to take control of your finances, call your local Adult Protective Services or tell someone at your bank.
- Trust your instincts. Exploiters and abusers often are very skilled. They can be charming and forceful in their effort to convince you to give up control of your finances. Don’t be fooled—if something doesn’t feel right, it may not be right. If it sounds too good to be true, it probably is.
Remember: Never give personal information, including Social Security Number, account number or other financial information to anyone over the phone unless you initiated the call and the other party is trusted.
New Year, New Me, right? We’re well into the new year and you may have dropped your New Year’s Resolution to become financially fit. Don’t despair. It’s still early in the new year and a great time to clean up your financials, adopt better spending habits, and start saving more. Here are a few tips to keep in mind:
Make a budget and stick with it
This almost cliché financial advice is repeated so often for one important reason: it works. Start by tracking your spending, once you’ve tracked how much money you spend over the course of a few weeks, you can look for trends in what you’re spending. These trends help you start planning on how much income goes towards necessities (like rent/mortgage, utilities, groceries), and see areas where you can cut back (rarely-used subscription services, eating out less) and start putting away a portion of your income towards a savings goal. The most important part of a budget is sticking with it, once you start tracking your spending you should make sure to take time every day or every few days to log your spending and compare that to your planned spending.
Deal with any debt
Debt is an extremely stressful thing to deal with but the new year is a time to get a handle on any debt that may have piled up around the holidays. Debt should be something factored into your budget like your electric bill and tracked. Although it may be daunting, contact your creditors to discuss your situation, they may be willing to work with you to put together a repayment plan. If you're carrying debt on multiple credit cards, talk to your local bank about the possibility of consolidating that debt into a single payment so you can close the extra card accounts. No matter what you do, addressing debt instead of ignoring it will help you get a handle on it and make positive progress.
Many times people will stick with whatever they find first, be it their internet provider, car insurance, or brand of soup, but that may not be the best deal, especially a few years down the line. There’s nothing wrong with being loyal to a company but just because they’ve been your cable provider for a few years isn’t necessarily a good reason to stay with them and doesn’t ensure that you are getting the best value for what you are paying. Look around to see what other companies are charging for similar services, you may find that your current company is priced competitively or you may find that you can get a better deal elsewhere. One thing to beware of is a cheaper product or service that is cheaper for a reason, make sure you are still getting a similar quality or ask yourself if you are ok with a downgrade.
Making a commitment to financial health and wellness can be a great way to start the New Year on good footing that can last throughout the year and your life.