I happened upon this video today on CNN. And lo and behold…Clark Howard – CNN’s Money Expert – is talking about getting the best deal for a car loan at a credit union. I’m biased, but I agree. Especially if you already have a car, and a car loan. I can’t speak for all credit unions, but here at MCCU, we are offering rates as low as 1.99% APR*, with 90 days NO PAYMENTS**. So if you have a used auto and are making payments, call us for a quote! We may be able to save you money each month. And who doesn’t like saving money?

You can also apply online for a fast response – and with no application fees to boot!

So listen to Mr. Howard – he is the Money Expert after all! Go to a credit union for your next car loan or refinance!

* APR=Annual Percentage Rate. Rates as of 01/01/12 and are subject to change at any time. Must meet credit and income criteria. Rate quoted is the preferred rate with a 24-month term. Subject to credit approval and membership eligibility. Sample Payment: $510.44 (based on 24 month new/used car loan, $12,000, 1.99% APR). Other rates and terms available. Restrictions may apply. Existing MCCU Auto Loans not eligible for refinancing. Membership required.
** Interest will accrue from date of funding.

Really?

Most of us can’t afford to buy a loved one a new car for the holidays, let’s get real. Especially a Lexus, Mercedes, BMW… However – there is something you can do for a loved one that involves a vehicle this holiday season. If they already have a car they love, or simply can’t afford a new car, talk to them about refinancing their loan! If their car is, let’s say, two years old – chances are their rate is fairly high, by today’s standards. If they refinanced at a lower rate, they may be able to save hundreds of dollars each month on their payments. What a wonderful gift, especially in this economy!

I’ll give you an example: Billy Jones bought his Nissan Altima in 2009. His rate was 5% when he got the loan, with a 48-month term and an original balance of $25,000. He now owes $13,000 and his monthly payments are $576. If he refinanced his loan now, at a rate of 2.99% annual percentage rate for 48 months, his new payment would be $288, cutting his monthly payment in half!

So how is this a gift, you ask? Maybe your family and friends didn’t realize they could refinance their loan, or just need that little nudge to do it. Show them this example and how much money they could possibly save. I think Billy would be ecstatic to save almost $300 a month!

MCCU has GREAT, low rates on auto loans, PLUS there are no payments for the first 60 days! Give the gift of Refinancing this holiday season – you and your recipient will have a very joyous holiday!

Do you have an auto loan with another lender – a bank perhaps? Would you like to lower your monthly payment? Of course you would. We’ve all been so preoccupied with checking accounts and debit cards that auto loans are being neglected. If you don’t already know your rate/monthly payment on your car loan, definitely find out what they are. You could be saving money!

Matadors Community Credit Union has great deals on new and used (refinances too!) auto loans right now, as low as 1.99% annual percentage rate!* We have other rates/terms as well. Let us quote you on your car loan and see if you can save money with us. Plus, you won’t have to make a payment for the first 60 days!**

Let’s call every day Auto Loan Transfer Day from now on. If you can save money each month, why not switch? Call us or go online and apply. We don’t charge any applications fees, so you have nothing to lose; only money to gain each month!

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* APR=Annual Percentage Rate. Rates as of 10/01/11 and are subject to change at any time. Must meet credit and income criteria. Rate quoted is the preferred rate with a 24-month term. Subject to credit approval and membership eligibility. Sample Payment: $510.44 (based on 24 month new/used car loan, $12,000, 1.99% APR). Other rates and terms available. Restrictions may apply. Existing MCCU Auto Loans not eligible for refinancing. Membership required.

** Interest will accrue from date of funding.

According to an article on CNNMoney.com:

Flooded vehicles are dangerous because the water damages the mechanical and electrical systems that control safety features. That means anti-lock brakes and turn signals can fail, airbags may not deploy in an accident, or — as in one unfortunate buyer’s case — the entire engine can simply blow up.  Health issues are another concern. Chemicals and filth can get into the seats and ventilation, and can result in a buildup of mold and bacteria.

See full article from DailyFinance.

The best way to avoid purchasing a flooded vehicle is to take it to a trusted mechanic before you buy it. If you are purchasing the car online, find a mechanic who is not connected to the seller and have them check the car out for you.

If you do purchase a used car that is in good condition, finance it with MCCU! We have low rates, no application fees, and no payments for 60 days (interest will accrue)! You can even apply online for  fast response.
Good luck in your new car search – and remember, an informed shopper is a happy shopper!

One of life’s greatest conveniences is the automobile. It can, however, become quite cumbersome when not maintained properly and unexpected expenses arise due to necessary repairs.  All too often, required and preventative maintenance needs can easily fall by the wayside, resulting in a shorter life span for the car.  Unmaintained cars often break down faster than those that receive regular service and care, resulting in hundreds, even thousands, of avoidable repair bills. The California Department of Motor Vehicles would like to offer common maintenance tips that will certainly lengthen the life of your car.

The following represents a list of tips that provide a general overview of basic maintenance. Be sure to check your owner’s manual for more specific directions on how to properly maintain your car:

Belts

Through preventative care for your car, you can reduce the chances of it breaking down and leaving you stranded. Be sure to prevent engine failure by inspecting belts and hoses monthly. Replace worn, glazed or frayed belts. Take your car to a mechanic to tighten them when more than 1/2″ of slack can be depressed between the pulleys. Remember to replace bulging, rotten or brittle hoses and tighten hose clamps in order for your car to operate smoothly. If a hose looks bad, or feels too soft or too hard, it should be replaced. If not replaced, a belt or hose can eventually tear or snap apart which could lead to engine failure and possibly leaving you stranded, with a broken down car, at an inopportune time.

Brake Fluid

Don’t wait for the next time someone stops short in front of you to know if your brakes are working properly. Check brake fluid monthly to ensure your brakes have enough fluid to promptly stop. First, wipe dirt from the brake master cylinder reservoir lid. Pry off the retainer clip and remove the rubber cap or unscrew the plastic lid, depending on which type your car has.  If your car is low on brake fluid, you may not be able to stop immediately, potentially leading to a collision. If you need fluid, add the approved type and check for possible leaks throughout the system.

Power Steering Fluid

No one wants to work harder when they don’t have to and the same goes for your car. To keep your car from being over worked, check the power steering fluid level once a month. If the fluid levels aren’t regularly checked, over time the internal power steering components will tend to wear down and become filled with debris, forcing the power steering pump to work harder than it needs to.  Simply remove the reservoir dipstick to check the steering fluid level. If the level is down, add fluid and inspect the pump and hoses for leaks

Transmission Fluid

Check transmission fluid monthly while the engine is warm and still running – make sure the parking brake is also on. With your foot on the brake, shift to the “drive” position and then back to “park.” Remove the dipstick, wipe dry, reinsert it and remove it again. Make sure the fluid level is above the line marked “MIN,” or as recommended in the owner’s manual. Failure to keep transmission fluid at the minimum level can lead to car problems such as erratic transmission shifts or, at times, damage to the system. If needed, add only the approved fluid type.  Check your owner’s manual for the approved fluid type for your car.

Engine Oil

Check your oil at least once a month. Remove the dipstick, wipe it clean. Reinsert it fully and remove it again. You should be able to easily see the level of oil on the dipstick. If it is low, add the recommended oil type. The performance levels are dependent on the type of oil used.   To maintain peak performance, refer to your owner’s manual for the manufacturers recommended mileage for oil changes.  Manufacturers typically recommend an oil change at 5,000, 7,000, or even 10,000 miles, depending on driving conditions. Replace oil filter with every oil change. Changing the engine oil in a car will keep the engine clean and lubricated; if ignored it could lead to an engine failure.

Smog

Going green has been the new trend and it applies to your car , too. Don’t get caught driving an environmentally hazardous vehicle. Cars registered in areas subject to the biennial smog certification programs are required to submit evidence of a smog certification every other renewal period. Owners of cars six or less model years old will pay an annual smog abatement fee for the first six registration years instead of being required to provide a biennial smog certification. The registration renewal notice mailed to you by the Department of Motor Vehicles will indicate if a smog certification is required. If a smog certification is required, and you have not had a smog inspection, you may still pay your registration fees to avoid any late fees. However, you will not receive your new registration or year sticker until the smog information has been received by the DMV. It is important to get smog checks to assess your car’s emission levels. Cars with excessive emissions are required to be repaired before returning to the road. For more information on smog checks and where to find a smog test station nearest you, check our website www.dmv.ca.gov

As you squeeze in that last summer or fall road trip, be sure to keep up the maintenance of your car to ensure that you will reliably, and safely, get to your destination. The DMV recognizes that some people may be less car savvy than others.  Auto repair shops and other businesses in the auto industry can assist you with the upkeep of your car. A well-maintained car will last years beyond its life expectancy and save you money over time. Remember to check your owner’s manual for specific maintenance needs and visit our site, www.dmv.ca.gov to watch videos about car maintenance.

If you need a new car, or simply want to refinance your well-maintained car, contact MCCU for a low-rate, no application fee auto loan! And, you won’t have to make any payments for the first 60 days (interest will accrue)!

Summer is here and we are going tropical! Visit any branch and enter to win a weekly drawing for either a $50 L&L Hawaiian Barbecue or Roy’s Hawaiian restaurant gift cards! While you’re here, enjoy Hawaiian music and find out more about all of the great products and services we have to offer, like:

• Free Checking
• Low-Rate Auto Loans
• MasterMoney Debit Cards
• Free Online Banking and Bill Pay
• No Annual Fee Credit Cards with Rewards

Visit us today and enter to win!

Aloha Days will run August 1-31, 2011. One gift card awarded weekly, with five winners total. One entry per person. No purchase necessary. Winners will be chosen by random drawing each Friday and the winner will be notified the following Monday.

 FHA Loans:  These loans can require as little at 3.5% as a down payment.  They are available for purchases and refinances (even if you have little to no equity in your home).  FHA loans are available up to $729,750 and you don’t have to be a first time home buyer to qualify for this type of loan.  The home needs to be your primary residence unless you cosign for a significant other or child and they are occupying the home as their primary residence.

VA Loans:  As the name implies, these loans are designed for veterans, and offer some terrific benefits, including no down payment requirement, and you may even be able to have the seller pay your closing costs.  You will be required to have your DD214, and you’ll want to check with the Veteran’s Association to determine your eligibility, or visit www.vba.va.gov, but you do not need to be a first time home buyer.

Fannie Mae/Freddie Mac:  Two of the most popular government sponsored loans available, Fannie Mae and Freddie Mac offer loans for purchases, refinances and even cash-out refinances.  They will require a minimum of a 5% down payment.  Their conforming loan limits max out at $417,000.  However, high balance conforming loans are available up to $729,750.  These are the typical loans you see advertised in the newspaper most often. Most borrowers are taking advantage of the low 30 and 15 year rates and you will typically save one-half percent for the 15 year loan.

Streamline Rehabilitation Program, aka Streamline 203(k):  This government backed program is also a great option for homeowners and homebuyers. Its appeal to homebuyers lies in the fact that you can purchase a home that is damaged, and needs repair, with the loan including the amount of money needed for the repairs, up to an additional $35,000. A down payment for purchases can be as little as 3.5%. Similarly, if you already own a home that desperately needs repairs, a refinance may be available to you above the current value of the home, including the cost of home repairs and improvements.

 CalSTRS:  The California State Teachers Retirement System is available to employees of California Public Schools and Community Colleges.  These 15-year and 30-year fixed purchase loans are offered through an exclusive program, and offer loans ranging from $417,000 to $834,000.  Check www.calstrs.com for eligibity.

Refi-Plus: This government sponsored refinance loan is available to allow homeowners to refinance with little to no-equity in their home (up to 125% of the home’s value) if the loan was previously owned by Fannie Mae or Freddie Mac.

If you need more information on whether you qualify for a government sponsored loan, or have questions about whether any of these loans are right for you, contact the MCCU Loan Department at 818.993.6328 or go online for more information!

Refinance your car loan with rates as low as

 2.99% APR¹

But that doesn’t mean you should shy away from purchasing or refinancing.  Interest rates are still historically low and home prices are more or less stable.  Instead, what it means is that you should be prepared for your loan approval and funding to take at least a month and you should expect curveballs to be thrown your way during the process.

The first thing to prepare for is the fact that, online, you may see interest rates that are absolutely incredible.  However, what the fine print may or may not explain is that those rates apply to 15 day lock-ins for borrowers with very high credit scores and a lot of equity.  This sounds great at first glance, of course, except for the fact that it is next to impossible to fund a loan in 15 days especially given the changes in the lending industry.

The reasons these quick turnaround loans are impossible are many.  First, new rules mandate that before you can be charged for an appraisal on your home you must acknowledge and sign certain disclosures.  This means you must receive and understand your Truth in Lending Statement and your Good Faith Estimate (GFE) before the appraisal takes place at your expense.

The new GFEs have become incredibly confusing.  If you’re purchasing a home for example, some seller’s costs will be included (which as the buyer you’re not responsible for).  This makes your closing costs look higher than they actually are. They are also confusing as they do not include your monthly property taxes, insurance or any HOA fees.  You need to make sure you understand your GFE before signing.  Obviously, signing immediately for your receipt of these becomes problematic if you need time to sit down with your mortgage professional to clarify (which I highly recommend).

The next delay that might occur is with the appraisal itself.  It can take days for the appraiser to view the property.  Moreover, unless your agent is there to educate them on comparable sales in the area where you’re buying, the appraisal may come back grossly inaccurate. It is important to note that your mortgage professional is not permitted to select your appraiser. Appraisers are randomly selected from a panel and, unfortunately, your mortgage professional can’t guarantee that the appraiser is from your area or even familiar with your area.  Nor can we guarantee that the appraiser selected will be the most experienced available. That’s why you’ll need to rely on your REALTOR® to ensure that your appointed appraiser is professionally educated about home prices and sales in your area as an inaccurate appraisal will certainly present another delay.

Next, you need to be prepared that the lender will request copies of almost everything except your first-born.  Your income tax returns, pay stubs, investment account statements, bank statements and proof of any other income you have will be required.  My advice to prevent delays during this stage is to have copies of everything ready before you apply for your loan.

Finally, whatever you do, don’t make a big purchase on credit anywhere near the time that you’re applying for a mortgage loan.  The lender will run your credit right before the close of escrow and a debt appearing during the escrow period may lower your score or cause your overall debt to increase which, in turn, can throw off the approval.

Don’t get me wrong, it’s a great time to buy a home or refinance, just do yourself a big favor and prepare for the process to take a minimum of 30 days.  Prepare your documents before applying for a loan. And remember, your mortgage professional wants to close your loan for you as quickly and seamlessly as you, so we’ll do everything in our power to move the process along, as expediently as is reasonably possible.  Happy house hunting!

Want to see how low rates are? Contact the MCCU Loan Department at 818-993-6328 today! Check out our mortgage program here.

Why? Rates are extremely low right now! You could possibly save hundreds, if not thousands, of dollars simply by refinancing your car or home loan.

I challenge you to look at the rate you’re currently paying on your car or home, and then shop for current rates at your local credit union. You can go to MCCU’s Loan Calculator to see how much you can save with a new, lower rate! Plus, most credit unions, including MCCU, won’t charge you to apply for a new loan. Here’s an example of how much you can save on a car loan refinance with MCCU:

Your Rate – 6.00% annual percentage rate

MCCU’s Rate – 2.99% annual percentage rate (restrictions apply)

For a 60-month loan for $20,000, total interest for your loan at 6.00% would be $3,202. Total interest if you refinance with MCCU is $1,558. That’s a total savings of over $1,600!

I won’t quote mortgage rates here since they can change so frequently but they are extremely low right now! Talk to a mortgage broker or loan officer and find out if you can take advantage of these low rates. MCCU offers mortgages – fixed and ARMs (Adjustable Rate Mortgages). We can help you find the product that best fits your current needs.

Take the time to get this done, you’ll be happy you did when you see how much money you may be able to save. If you are already with a credit union, talk to them about their current rates and see if refinancing can help you save money. Otherwise check out MCCU’s current rates and contact us today to see if we can help. As long as you live in California we can help you!

Questions or comments? E-mail me at blogger@matadorsmoneymatters.com.