Videos

What is a down payment? 

A down payment is the initial cash you put down when you are buying your home. It represents a percentage of the total purchase price, and the buyer will often take out a mortgage loan to finance the remainder.

With a larger down payment, the buyer needs to borrow less, monthly mortgage payments are lower, and less is paid in interest over the loan term.

At Ascentra, a fixed-rate home loan requires a minimum 5% down payment and a first-time homebuyer adjustable rate mortgage loan requires a 3% down payment.  To avoid paying private mortgage insurance, a down payment of 20% is needed. 

The down payment funds can come from a variety of sources.  Oftentimes, people use assets like savings or retirement accounts.  Additional sources for funds include gifts from family members, grants or secured borrowed funds.  

Help may also be available in the form of down payment assistance programs.  At Ascentra, we offer a $7500 first-time home buyer grant for qualifying individuals.*

All down payment funds require documentation.  We want to make the process as simple as we can.  We are here to guide you and make sure your home buying experience is as smooth as possible.

We are your mortgage experts.      

Should I refinance?

This is a very good question, especially if rates are low!

The general rule of thumb is that if you can save at least one point in interest (for example lowering it from 4% to 3%), you can definitely save money in interest.  And often times, you can lower your payment or even the term of the loan down from, say, 30 years to 15 or even 10.

But while that may be a general rule, the most important question is “What is YOUR goal?”  

Some reasons you might want to refinance are

• To save money each month with a lower payment.
• To pay off your loan sooner by shortening the term of the loan.
• To consolidate other debts into one easy monthly mortgage payment.
• To borrowing against your home’s equity to make improvements or upgrades to your home.

Or maybe you are just unhappy with your current lender because your loan is constantly moving from one investor to another.  That won’t happen at Ascentra because we service all of our loans locally.  So when you need assistance WE will be here to help.

At Ascentra, we are your mortgage experts.

What is Escrow? 

An escrow is essentially an account that holds funds for your annual taxes and homeowners insurance throughout the year.  With each monthly mortgage payment you make, money is held in an account by the lender, then those funds are used to make your annual property tax payments and home owners insurance payments on your behalf.

When you escrow the lender will add 1/12^th of your insurance premium and 1/12^th of your tax bill to your monthly payment, so the lender has enough set aside to pay the bills when they are due.

It is important to know that escrow accounts are regulated, and all lenders are required to follow the same rules.  If you are purchasing a home and have less than a 20% down payment or you have less than 20% equity when you refinance, lenders require you to escrow your taxes and insurance as a part of your monthly payment.  If you are putting down at least 20% or have at least 20% equity on a refinance, you have the choice if you want to pay your taxes and insurance on your own. At Ascentra we do not require you to escrow in this situation, it is entirely up to you.

Annually our escrow department will do an escrow analysis, which includes new insurance premiums, new tax rates, and a 2-month cushion that is allowed by the government. We then calculate your new monthly payment based on those factors. 

Your mortgage payment may go up or down year to year depending on changes to your property taxes or insurance rates. 

If your escrow comes up short for any reason, you have the option to pay any shortage or you can finance that amount out over the next 12 months of mortgage payments.

At Ascentra, we handle all of our loan servicing in house, so if you ever have any questions, we are here to help.  We are your mortgage experts.

What is PMI?

PMI is short for private mortgage insurance. PMI is insurance required on mortgage loans for borrowers in two specific situations.

If you don’t submit a 20% down payment when purchasing a home, PMI is required.

OR If you don’t have 20% equity in your home when you are refinancing, PMI is required.

PMI is not homeowners insurance. Private Mortgage Insurance actually protects the lender in the instance that you stop making payments on your loan. The cost of PMI is included in your monthly mortgage payment.

You can request to stop PMI once your reach 20% equity in your home.  These requests are evaluated based on your payment history.  PMI is automatically canceled once you reach 78% equity in your home.

It is always a good idea to read your mortgage statement and be aware of the amount of equity you have in your home, since stopping PMI can save you money each month.

Here at Ascentra, members receive letters annually letting them know the percentage of equity in their home. This makes it really easy to track when you can cancel your private mortgage insurance.

At Ascentra, we handle all mortgage servicing in-house.  So if you have questions, we are here for you.  We are your mortgage experts.

 

What is a credit score?

A credit score is a number ranging from 300 to 850 that rates a consumer’s creditworthiness.

Financial Institutions use your credit score to determine your creditworthiness and often base interest rates for loans and credit cards on how high or low that number is.

Payment history, Total amount owed, Length of credit history, Types of credit, and credit inquiries are the main factors in determining your credit score.

Typically, a score of 680 or higher is considered good and will earn you the best interest rates, and a score of 550 or lower will often make getting approval difficult.

While some financial institutions determine your approval or denial exclusively by your credit score, at Ascentra your credit score is only one factor.  We listen to your story and help you make the best decision possible for your current situation and your future.

If your credit is considered low, we want to help you rebuild your score so you have more options and can pay less interest in the future.

So how can you improve your credit?

First, maintain on time payments. Create a budget and stick to it to help pay down your unsecured debt. The less debt you have, the more available credit and the better your score will typically be.

Next, consider consolidating your debt with a home equity loan, or secure the loan with other property. This will bring all your outstanding debts into one, easy-to-manage payment and make it easier for you to make progress.

Third, avoid new credit inquiries if possible. Each time you apply for a new credit card or loan, the financial institution will need to pull a credit report. These credit pulls can lower your score.,so make sure you plan ahead and don’t open any new lines of credit without considering the effects.

And lastly, manage credit card debt responsibly and keep your balance to 30% or less of your available credit.. It’s easy to spend with credit, but remember that you will pay interest. Keeping your debt below 30% of your available credit will help improve your score.

If you are looking to improve your credit, Ascentra can help. Our certified Financial Coaches are here to help you create a plan free of charge. We also offer a secured credit builder loan with a 6-12 month term to build your credit.

To learn more about improving your credit or creating a budget, feel free to set up an appointment to see an Ascentra Financial Counselor and see what Ascentra can do for you.

Setting a budget and learning how to save are a couple of the first and most important steps in getting on the path to financial wellness at Ascentra.
It's our job to help you learn and find success in managing your finances.

And while all situations are different, here are four steps for budgeting and saving that can help any member get started.

First, make it visual. 
Listing out your expenses and seeing on paper where your funds are going each month can really put things into perspective and in some cases provide the shock factor you may need to spend less.
Visualizing your spending can help determine where you're spending the most money and where it may be possible to cut back.

Next, make sure you pay yourself and make sure you budget to treat yourself.
Include yourself as a bill or expense and pay yourself too.
Personal savings needs to be a priority when budgeting.
If you aren't saving, it's hard to get ahead and have extra funds available when things do come up.
If you don't budget for fun things you like to spend your money on, you could end up overspending or using loans and credit cards or just unable to purchase the fun things or experiences you want at all.

Lastly, diversify your savings into different accounts.
It's best to have two or more savings accounts that serve different purposes.
You can have special accounts for things like long term or short term savings, vacations, home repairs and more.
Splitting your savings up can make it easier to track progress on the way to each savings goal and allow for flexibility when unplanned emergency expenses come up.
Having dedicated funds can make spending that money less painful, since it's coming from a predetermined place and not your main savings account.

We really hope this gave you a different perspective on what budgeting and saving can really be like.
When you're ready to sit down with the financial coach and get on the path to financial wellness, you can find one close to you at ascentra.org/coach.

No matter who you meet with all of our coaches are certified financial counselors and have gone through the financial counseling certification program and would love to help.
We hope to see you soon.

There are good tips, like having an emergency fund and there are bad tips, like spending all your money on the pizza pouch for your emergency slice of pizza. 
At Ascentra, we’re here to help you decide which ones to follow and which to leave behind. 
Bad tip: Let George make your lunch.
Good tip: Instead of opening a credit card with a big bank that hides the annual fee and high rates in the fine print, open an Ascentra Visa credit card. You'll love our fine print, where explain there will be no annual fee and no high rates.
So follow the good tips, not the bad and head on over to ascentra.org/visa to apply today.

There are good tips, like create a budget and there are bad tips, like spending large googly eyes. 
At Ascentra, we’re here to help you know which ones to follow and which to leave behind. 
Bad tip: Let George crive your card.
Good tip: Download the CardValet app and load your Ascentra Visa® Credit and Debit Cards. You can turn your cards on and off if they get misplaced, setup alerts for every time your card is used, and more!  
So follow the good tips, not the bad and head on over to ascentra.org/visa to apply today.

The holidays tend to get a bit out of hand, especially when it comes to spending money. The regret that comes with that January credit card bill can be a bit of a… pink nightmare.

But it doesn’t have to be that way. Here are a few tips to help you defeat the holiday bill regret.

Don’t buy on impulse. I know the deals are almost as attractive as my leg lamp, but don’t give in. Go into the holidays knowing what you need to buy and don’t buy random gifts on impulse JUST because it’s on sale.

Keep track of your spending. You can use Ascentra’s Financial Tools to see how much you’ve spent vs your income so you can stick to your spending plan.

Remember that the gift is in the giving, but it doesn’t need to be expensive. Shoot, my boys were just as happy with me telling them we’re going out for dinner as they were with their gifts.

While you’re doing your smart shopping, don’t forget to use your Ascentra VISA Credit Card. When you use it you’ll lock in a low 4.9% APR from November 1 - December 31. And you don’t even have to bargain like at the Christmas tree farm.

 

It seems no matter how hard you try, there’s always some CON FLABBERIN’ unexpected expenses around the holidays. Like your kid shoots their eye out and needs new glasses.

That’s not the only unexpected expense you might run into during the holidays. Here are a few things that could come up and how to be prepared for them.

Increased shipping costs. If you don’t start shopping early and plan on shopping online, you could end up paying for expedited shipping just so it’s under the tree in time for Christmas. Instead, take our advice and shop early!

Of all the people to buy me a Christmas gift, my paper boy? Really? Now I feel the need to get HIM something. Luckily, I know this happens every year, so I’ve added a little wiggle room in my holiday spending plan so it’s not as unexpected. That will come in handy when you forget about your office white elephant exchange.

Why is wrapping paper so dang expensive? I’ll save myself some money and hassle, and just use my newspapers. I’ve heard it will give it a “trendy” look anyways.

If that’s not enough to get you through the holidays, with an Ascentra Holiday loan you can borrow up to $2500 dollars for 12 months with a rate as low as 5.9% APR. You should take advantage of that.  I triple dog dare you.

 

You know back in my day, we didn’t have any CON FLABBERIN’ Black Friday or Cyber Monday.  You just went to the mall and left your kid in line to meet Santa while you got the shopping done.

But this year, things are different. That dadgummit virus has made things difficult, but there are still ways to make sure your holidays are as merry as ever. Here are a few things the wife and I plan on doing.

Shop early. Stores are using the entire month of November for deals, so we can get our shopping done early and save some money.

Why shop in store when I can shop online? The interwebs is so fast now that I can get all my shopping done in minutes!

Set a spending plan and stick to it! Ralphie doesn’t need the most expensive Red Ryder BB gun. A more affordable alternative will do just fine. (CU of Ralphie)

Take advantage of Black Friday and Cyber Monday. As the kids have told me, they’ll have “deals, on deals, on deals”. Whatever that means.

Lastly, use your Ascentra VISA Credit and Debit Cards for qualifying purchases on Black Friday and Cyber Monday. You’ll earn two times the uChoose Rewards points. Now that’s a major RE-ward.

 

“Today Ascentra is Making Sense of Estate Planning”

Estate planning is the process of designating the distribution of your assets upon your death. It also dictates how your affairs will be conducted, if you are no longer able to make these decisions yourself.

Is it just for the rich or older people?  No, regardless of your age or the size and complexity of your estate, a good estate plan should:

Identify the family members and other loved ones that you wish to receive your property;

Ensure that your property will be transferred to those you have identified; and

Minimize the amount of potential taxes and fees that may need to be paid.

Elements of estate planning include a Will or Trust, Power of Attorney for medical and financial needs, and a Medical directive - known as a Living Will - which in the event you’re incapacitated, spells out, the care you’ll accept.

A well-planned estate can help avoid family disputes, and is a valuable gift to your loved ones, during a tough time.

“Today Ascentra is Making Sense of Overdraft Protection”

Overdraft Protection is a service tied to your checking account that for a fee, will allow you to make purchases with a check, debit card, or allow automatic payments to process even if you lack sufficient funds.

Options and fees vary by financial institution.  One option is automatic transfers of predetermined increments from a savings account, when you fall below your available balance. Doing this will incur a fee in the $5 to $12 range.

Another option is tying your account to a line of credit. This also deposits predetermined increments to your account, but instead of a fee, you are charged interest on the amount borrowed. 

Finally, Be careful with  Courtesy Pay  which may charge a fee of up to $40 for every transaction that falls below your balance.

You can opt-out of these services, but you run the risk of being declined for purchases, or being charged Non-Sufficient Fund fees.

Avoid these fees altogether – by reconciling accounts, setting up text alerts, and sticking to your spending plan. 

“Today Ascentra is Making Sense of Annual Percentage Yields”

The APY is the actual rate of return that includes compounding interests on savings accounts, and investments that financial institutions pay you.    

While it’s important to compare the APY, the frequency of compounding is just as important. 

Because some financial institutions compound more frequently, comparing accounts based on the APY alone, is not accurate. 

Say two financial institutions offer a CD for 12 months at 2% APY, but one pays out compounding interest monthly, and the other annually. 

Your return will be higher with the one that compounds monthly, since each month; you have an increasing principle earning interest, as opposed to only once.

Also, be sure to compare penalties for pulling money out of an account early, or if you fall below a certain balance.  This may reduce your interest earnings, principal balance, or even hit you with fees. 

Read the fine print when comparing accounts or CDs, and realize that the highest APY doesn’t always pay you the best.  

“Today Ascentra is Making Sense of IRA Rollovers”

If you’ve been putting money away in an employer retirement plan such as a 401k, you have options on moving your retirement dollars safely.

If you’re switching jobs, and don’t want to move your existing retirement plan to your new employer, or pay penalties and taxes if you cash it out, you have the option of rolling it over to an IRA- an Individual Retirement Account. 

An IRA rollover from a qualified retirement plan has no penalty and no tax consequences.

Perhaps you’re retiring, and wish to have more control over who, where, and how your hard-earned money is invested -  An IRA rollover may be a perfect option. 

Before making any big financial decision, it’s important to talk to a trusted financial advisor, to find out what works best with your retirement goals, and to make sense of any penalties or tax consequences that could apply.  

With the right help, it can be done safely and easily.

“Today Ascentra is Making Sense of Auto Insurance”

Auto Insurance is a policy purchased by vehicle owners to alleviate costs in the event of an accident or theft.

Requirements may vary, but nearly every state requires drivers to carry a minimum of liability insurance.

Liability insurance will pay medical expenses, lost income, and vehicle repairs for the other driver, if you’re at fault in an accident.

Some states also require personal injury protection, and uninsured motorist coverage. --Which can cover the costs, when the other driver lacks insurance coverage.

While liability insurance covers the damage your vehicle has caused to others, it does not cover, damage to your own vehicle.

Collision and comprehensive are additional coverages,     that can protect your vehicle in the event of an accident, or non-collision related incident.

Review of your policy every year. You may find that you can save money, while keeping or even 

“Today Ascentra is Making Sense of Home Equity Line of Credit”

A home equity line of credit, or HELOC, can be a quick and convenient way to access funds for your next home improvement project or major life expense.  

Like a credit card, a HELOC is a form of revolving credit that turns your home into cash.

It gives you the flexibility to access funds and use them when needed over a period of time, usually 5 to 10 years, known as the draw period.

Once the draw period is up, monthly payments are made to repay the loan during a repayment period, which is typically 20 years.

The interest rate on a HELOC is based on your balance and the prime rate.

Most lenders let you borrow up to 80 percent of your home’s value; at Ascentra, you may borrow up to 100 percent.

Unlike other loans, the interest on a HELOC could be tax-deductible, and generally has a lower interest rate.

Head to Ascentra Credit Union and see if a HELOC can help you with that remodel you’ve always wanted. 

“Today Ascentra is Making Sense of Flood Insurance”

Many believe their homeowners or renters insurance will cover flooding due to rising floodwaters - Unfortunately, that is not the case. 

Usually the only flood damage covered by most of these policies is in cases where a pipe bursts, or if your roof is damaged by a storm and water enters your home.

Flood insurance specifically covers damage resulting from rising floodwaters, - protecting your finances and providing peace of mind.

Flood Risk Areas are determined by the Federal Emergency Management Agency, or FEMA, and are rated as low, moderate, or high-risk.

According to FEMA, more than 20 percent of flood claims come from properties outside high-risk flood zones.  

Flood hazards may change over time due to land developments, or changing weather. 

Visit FloodSmart.gov and use the Flood Map tool to find the risk zone for your home or business.

Then talk to a trusted insurance agent to see if flood insurance makes sense for you. 

“Today Ascentra is Making Sense of IRA Rollovers”

If you’ve been putting money away in an employer retirement plan such as a 401k, you have options on moving your retirement dollars safely.

If you’re switching jobs, and don’t want to move your existing retirement plan to your new employer, or pay penalties and taxes if you cash it out, you have the option of rolling it over to an IRA- an Individual Retirement Account. 

An IRA rollover from a qualified retirement plan has no penalty and no tax consequences.

Perhaps you’re retiring, and wish to have more control over who, where, and how your hard-earned money is invested -  An IRA rollover may be a perfect option. 

Before making any big financial decision, it’s important to talk to a trusted financial advisor, to find out what works best with your retirement goals, and to make sense of any penalties or tax consequences that could apply.  

With the right help, it can be done safely and easily. 

“Today Ascentra is Making Sense of Certificates of Deposit”

Looking to stack up your savings?

A certificate of deposit, or CD, is a safe investment option that locks in your funds while earning you higher interest.

When you put money into a CD, you make an agreement to let your financial institution hold onto your cash for a set amount of time.  

Most CD’s have a minimum deposit requirement, and can be opened with as little as $250.

Term lengths vary and are typically as short as three months or as long as five years.  The longer the term, the more you can earn.

If you invest $10,000 into a 53 month CD with a 3% APY, you can earn more than $1,300 once the term is up.

Avoid closing or making an early withdrawal as it will result in a penalty fee.

If you don’t need quick access to your cash, contact your trusted financial institution to apply for a CD and sit back, relax and watch your money grow!