Average mortgage interest rates on 30-year and 15-year fixed-rate mortgages have risen a bit in comparison to the last several years. Depending on when you purchased your home and the rate you have on your current mortgage, the time might still be right to refinance into a new mortgage. You might not hit the historic low-interest rates of the last several years, but rates are still attractively low. This leads to the big question of whether the time is right to refinance your mortgage? The answer, not surprisingly, depends on several factors, most notably your financial health, your current mortgage interest rate and how long you plan to stay in your home. Your Finances Before deciding to refinance, take a honest look at your current financial health. Have you been paying your bills on time every month or have been late or missed several payments? Do you have tiny credit card balances or have you run up mountains of credit card debt? Your ability to qualify for low mortgage interest rates that you see advertised online or in your local newspaper depends heavily on your three-digit credit score. That score will not be strong if you have a recent history dotted with missed car loan payments and soaring credit card balances. To qualify for today’s lowest rates, you’ll need a credit score of 740 or higher on the commonly used FICO credit-scoring system. If your credit score is much lower than that, you might not qualify for an interest rate low enough to make refinancing worth your while. Your Current Interest Rate Interest rates, of course, play a key role in whether you can justify refinancing your mortgage. If you can significantly reduce the interest rate on your mortgage, you can realize dramatic savings by refinancing. For instance, if you originally obtained a $200,000 mortgage at a 6 percent rate and made your $1,199.10 payment each month for 60 months, you would have an outstanding balance of $186,108.71. If you refinance that outstanding balance at an interest rate of 4 percent, your monthly mortgage payment will fall to $888.51 a month. That is a saving of $310.59 a month or $3,727.08 a year. That is significant. However, if your original $200,000 mortgage had an interest rate of 5 percent and 60 months later you lowered it only to 4.5 percent by refinancing, you’ll only save about $143.07 a month. That might not be worth the time and money of refinancing. Remember, refinancing your mortgage costs a significant amount of money. According to estimates from the Federal Reserve Board, you can expect to pay from 3 to 6 percent of your outstanding loan balance in closing and settlement costs when you refinance. For a $200,000 mortgage balance, that comes out to $6,000 to $12,000. You want to make sure that you’ll be saving enough money to pay back those fees over a reasonable period. Length of Stay Finally, consider how long you plan on staying in your home before you decide to refinance. The goal of refinancing is to save money. You will not be able to do that if you plan on selling your home before you can realize the financial savings of a refinance. For instance, if you saved $1,500 a year by refinancing with $5,000 in closing costs, you’ll need to stay in your home for at least four years before your savings pay back those costs.

Tips for Refinancing Your Home

View Resource Tips for Refinancing Your Home
Companies of all sizes are being targeted by criminals through business email compromise scams. In these scams, cybercriminals gain access to an employee’s legitimate business email through social engineering or computer intrusion. The criminal then impersonates the employee — often a senior executive or someone who can authorize payments — and instructs others to transfer funds on their behalf. First Federal Lakewood recommends the following tips to help businesses and employees avoid business email compromise attacks: • Educate your employees. You and your employees are the first line of defense against business email compromise. A strong security program paired with employee education about the warning signs, safe practices, and responses to a suspected takeover are essential to protecting your company and customers. • Protect your online environment. It is important to protect your cyber environment just as you would your cash and physical location. Do not use unprotected internet connections. Encrypt sensitive data and keep updated virus protections on your computer. Use complex passwords and change them periodically. • Use alternative communication channels to verify significant requests. Have multiple methods outside of email – such as phone numbers, alternate email addresses – established in advance through which you can contact the person making the request to ensure it is valid. • Be wary of sudden changes in business practices or contacts. If an employee, customer or vendor suddenly asks to be contacted via their personal e-mail address, verify the request through known, official and previously used correspondence as the request could be fraudulent. • Be wary of requests marked “urgent” or “confidential. Fraudsters will often instill a sense of urgency, fear or secrecy to compel the employee to facilitate the request without consulting others. Use an alternative communication channel outside of email to confirm the request. • Partner with your bank to prevent unauthorized transactions. Talk to your banker about programs that safeguard you from unauthorized transactions such as call backs, device authentication and multi-person approval processes. For more tips, see the FBI’s Internet Crime Complaint Center’s public service announcement If you fall victim to a business email compromise scam: • Contact your financial institution immediately to notify them about the fraudulent transfer and request that they contact the institution where the fraudulent transfer was sent. • Contact your local Federal Bureau of Investigation office as they might be able to freeze or return the funds, if notified quickly. • File a complaint, regardless of dollar loss, at www.IC3.gov.

6 Ways to Avoid Business Email Fraud

View Resource 6 Ways to Avoid Business Email Fraud
The internet is not only an incredibly vast source of information and entertainment, it’s also a convenient, time-saving tool for important tasks like banking. With online banking on the rise for both consumers and businesses, it’s more important than ever to follow a few basic steps to safeguard both your computer and your company’s sensitive information from malware, identity theft and other online threats. Here are some things you can do: 1. Keep Your Browser up to Date Most of today’s internet browsers, like Internet Explorer, Firefox, Google Chrome and Safari, provide built-in safeguards to help block malware. It’s a good idea to always use the latest version of whatever browser you choose, and be sure to configure it to automatically install security updates as they’re made available. 2. Block Pop-Ups, Consider Ad-Blocking Software Many browsers give you the choice to automatically block pop-up ads, which you should do whenever possible. “Malvertising,” or malware-embedded advertising, is a serious and growing threat – but you can avoid it by blocking ads or never clicking on them. For added protection, you can run dedicated ad-blocking software designed to keep other forms of advertising (beyond pop-ups) off of your browser. 3. Two Browsers: One for Business, One for Fun It’s a good idea to do all your business-related surfing (such as online banking, shopping and bill paying) on a separate browser from the one you use for all of your other internet activity. Make sure to keep the browser you use for secure work current with the latest security updates, and never use it for non-secure browsing. 4. Steer Clear of Questionable Websites Malware is often spread via websites with questionable content, so it’s best to avoid such sites. Also avoid clicking on those sensationalist ads promising shocking or “incredible” information that you find on some news and entertainment sites. You know the type, with headlines like, “One Weird Trick For Weight Loss” or “15 Shocking Celebrity Selfies.” The websites you visit don’t control these links or their content, so clicking on them is always a risk. 5. Only Trust Known Sites When Shopping or Downloading If you’re not familiar with a site or if it doesn’t have a good reputation for protecting personal information, don’t buy or download anything from it, and don’t share any personal account information. When purchasing from a trusted site, using a service like PayPal may be the safest way to pay. Pre-paid gift cards and credit cards are good options too, but a debit card doesn’t provide the same level of protection and should be avoided for online purchases. 6. Use an Up-to-Date Anti-Virus/Anti-Malware Program A good anti-virus and/or anti-malware program will go a long way in protecting your system from any viruses that could accidentally be downloaded while you’re browsing. These programs will also help your browser identify potential attacks that may be directed against it. 7. Keep Your Computer’s Operating System Up to Date Operating system vulnerabilities are regularly being discovered and fixed, so using the latest version is a good way to help stay protected. You will also want to install any patches and security updates as they become available from the company who makes your operating system. Updates often contain fixes for security vulnerabilities that could be exploited in previous versions of the operating system. Staying up to date helps you stay safe. By following these steps, handling your business’ banking online can be an efficient, easy, and – most importantly – safe way to keep all your important financial needs in order.

7 Tips for Safer Online Business Banking

View Resource 7 Tips for Safer Online Business Banking
Getting into shape or maintaining your fitness level is a common goal for people to have, but it requires some work to make it happen. Joining a gym is one of the best ways to have access to the tools you need to succeed in your fitness goals. However, you can end up spending a lot of money on your gym membership unless you do your homework and search out the best deal. Find potential gyms to join Start your search by making a list of all the gyms around you that you could join. You will save money if you choose a gym that is close to your home or work so you do not have to travel out of your way getting there. If the gym is in your usual path of travel, you are also more likely to go more frequently so that you are not wasting your money on an unused membership. List your desired features The last thing you want to do is to waste your money on a gym that has plenty of features you do not need, but is lacking in what you are looking for the most. Consider how you plan to use the gym, and make a list of your must-have features. They may include a pool for lap swimming or water aerobics, TV screens on cardio equipment, yoga classes, sports leagues, personal training, or a sauna. If you can find a gym that includes some or all of these features in the basic fee, you will be able to avoid paying for extras. At the same time, you do not want to overpay for a membership that includes many extras you will not use if an a-la-carte approach is available at another gym that would lower your monthly cost. Use free trials Before you buy a membership, try out the gym for as long as they will let you. Some gyms offer just a day pass, whereas others will let you try it out for three days, a week, or even longer. If you go through free trials at all the gyms in your area, they will often add up to a free month of workouts that ultimately helps you decide where you want to get your membership. Get yourself the lowest price Once you have identified the gym you want to join, your last task is to get the price as low as you possibly can. Start off by looking for coupons online. You can also check with your employer to see if they subsidize the cost of gym memberships. Also, ask the gym if they give a discount for joining with a friend. If possible, join a gym at the end of the month. That is the time when staff will be trying to meet their membership quota for the month, so they are more willing to negotiate on price. You can also save some money by joining during the slower time of the year, which is in the summer when people are busy with vacations and outdoor activities. Lastly, use your negotiation skills. Go to the gym and talk to a sales person about the price you are willing to pay. You can mention the competitor’s prices and see if the gym you want will match that price. You can also mention some of the features that are included in the membership that you will not use and see if they will cut you a deal. Gyms often won’t turn people away who want to buy a membership!

Saving Money When You Join a Gym

View Resource Saving Money When You Join a Gym
Prioritizing how you repay your debt is essential since it can impact how efficiently and quickly you become debt-free. It could also affect the ease in which you maintain your financial motivation. Having a well-organized priority list can not only help you to save money and time but also ensure you stay motivated to repay your debt. Make a List of Your Debt First, you’ll want to list all your debt, such as: Not only list them, but write down the amount you owe, the monthly payment, the interest rate, and if the loan is current, in default, or late. Strategies for Debt Repayment Here are four strategies for prioritizing how you repay your debt:
  1. Pay High-Interest Rate Debt First
    Prioritizing your debt by annual percentage rate (APR) is essentially the best strategy. If you pay off your debts with the highest APR first, you will save money overall. High APR debts accrue higher monthly interest fees. Therefore, the more you allow the debt to linger, the more it will cost you.

  2. Pay Small Balances First
    If your high APR debt is your highest balance, it can take some time for you to pay it all off, and this could cause you to lose motivation and decide to just stay in debt.
    That is not good, so you may want a different strategy. Instead, you might want to start with your smallest balances first. Tackling your small balances are quick wins and can help keep you motivated to tackle your larger debts.

  3. Pay Your Largest Balances First
    There may be some situations where you will want to pay your largest balances off first, such as:

    • Your largest balances are on a 0% promotional period, and you will want to pay it off before the promotion ends.

    • Part of your balance has a high APR since you used a special type of transaction like a cash advance.

    • You are paying a joint account off from a divorce decree to allow you to close the account.

    • The larger balance is harming your credit score since you are using over the 30% available credit limit.

  4. Pay All Your Balances Off At Once with Debt Consolidation
    If you cannot pay off your debt within five years or have high rate loans that are making it difficult, you might consider debt consolidation. In some cases, individuals consolidate debt because it is difficult keeping track of a handful of payments and their due dates.
    Debt consolidation is where you take all your debt and roll it over into a single loan. When individuals talk about debt consolidation, it’s usually because they can get a lower monthly payment or lower overall interest rate.
    One common way of consolidating debt is rolling your current credit card balances over onto a single credit card with a low-interest rate (often 0% APR for a specific period). You can save hundreds or thousands of dollars on interest if you pay the balance off before the 0% APR expires.
Takeaway Ultimately, success in repaying your debt will come down to knowing your options, setting priorities, and deciding on the right strategy. With a little bit of diligence, organization, and persistence, you will soon become debt-free.

Prioritizing How You Repay Debt

View Resource Prioritizing How You Repay Debt
The process of buying a home can be daunting if you’re a first-time buyer, especially when it comes to acquiring a home loan. Proper preparation can be the key to a smooth home-buying experience. Here are five recommendations on how to prepare yourself and your finances ahead of the mortgage application process so you can focus more on finding the home of your dreams and less on the paperwork to get you there.
  1. Consider holding off on large purchases prior to applying for a loan Lenders typically don’t want to see any sort of pattern relating to large, spontaneous purchases. Even if you are able to afford a new HDTV or bedroom furniture set, hold off on making the purchase until your loan has closed. That TV will look so nice in your new living room!
  2. Avoid moving your money around between accounts Even though moving money around between your accounts isn’t a deal breaker, it can delay the approval process. Lenders are very thorough with their research and due diligence, and will review bank statements, money market accounts, checking account and all other assets. If you do need to move money between accounts, plan to document your movements and the reasons for them. It’s smart to make it as easy as possible for the lenders. Also, ensure you are fully disclosing any monthly expenses including student loans, alimony or child support payments or revolving credit accounts.
  3. Try to wait before looking to change jobs A steady, reliable income is an essential piece in getting a loan for a home. Lenders always look for job consistency, and changing jobs during the loan approval process could influence the outcome. If there is no way to avoid the situation, be sure to discuss it with your lender, as earlier in the process as you are able.
  4. Familiarize yourself with your credit report It’s important to fully understand your credit report and score prior to applying for residential lending. This way, if there are any discrepancies on your report, you can take care of the situation before the lender reviews it. Bad marks on your credit report can result in your loan being declined or a higher mortgage rate and sometimes a few phone calls can eliminate issues you may otherwise have been unaware of. There are a number of free services available to help you gain access to your credit reports from all 3 credit bureaus- Experian, Equifax®, and TransUnion®.
  5. Don’t apply for additional credit accounts while applying for a mortgage Banks and other lenders appreciate seeing responsible applicants without a lot of debt or too many credit accounts. Applying for credit also can temporarily decrease your credit score, which can negatively affect your application.
Although the mortgage application process can be a bit of an undertaking, avoiding common pitfalls and mistakes can go a long way towards making the process less stressful. If you have questions about purchasing a home or acquiring a loan, visit the mortgage section of our website for more information and to help you find the right mortgage for you. We look forward to hearing from you.

5 Tips for Applying for a Mortgage

View Resource 5 Tips for Applying for a Mortgage
Corporate account takeover is a type of fraud where thieves gain access to a business’ finances to make unauthorized transactions, including transferring funds from the company, creating and adding new fake employees to payroll, and stealing sensitive customer information that may not be recoverable. First Federal Lakewood recommends following these tips to keep your small business safe. 1. Educate your employees. You and your employees are the first line of defense against corporate account takeover. A strong security program paired with employee education about the warning signs, safe practices, and responses to a suspected takeover are essential to protecting your company and customers. 2. Protect your online environment. It is important to protect your cyber environment just as you would your cash and physical location. Do not use unprotected internet connections. Encrypt sensitive data and keep updated virus protections on your computer. Use complex passwords and change them periodically. 3. Partner with your bank to prevent unauthorized transactions. Talk to your banker about programs that safeguard you from unauthorized transactions. Positive Pay and other services offer call backs, device authentication, multi-person approval processes and batch limits help protect you from fraud. 4. Pay attention to suspicious activity and react quickly. Look out for unexplained account or network activity, pop ups, and suspicious emails. If detected, immediately contact your financial institution, stop all online activity and remove any systems that may have been compromised. Keep records of what happened. 5. Understand your responsibilities and liabilities. The account agreement with your bank will detail what commercially reasonable security measures are required in your business. It is critical that you understand and implement the security safeguards in the agreement. If you don’t, you could be liable for losses resulting from a takeover. Talk to your banker if you have any questions about your responsibilities.

5 Ways to Protect Against Fraud

View Resource 5 Ways to Protect Against Fraud
According to the Internal Revenue Service, more than 70 percent of the nation’s taxpayers received a tax refund averaging nearly $3,000 in 2017 and will get a similar amount this year. As Americans receive their refunds along with additional benefits coming from the Tax Cuts and Jobs Act passed in December, we have highlighted seven tips to help you make the most out of your money: • Save for emergencies. More than 60 percent of Americans are not prepared for unexpected expenses. You can prepare by opening or adding to a savings account that serves as an “emergency fund.” Ideally, it should hold about three-to-six months of living expenses in case of sudden financial hardships like losing your job or having to replace your car. • Pay off debt. Pay down existing balances either by chipping away at loans with the highest interest rates or eliminating smaller debt first. • Save for retirement, your child’s education or future health expenses. Open or increase contributions to a tax-deferred savings plan like a 401(k) or an IRA. Your bank can help set up an IRA, while a 401(k) is employer-sponsored. Look into opening a tax-advantaged 529 education savings plan to ensure school expenses will be covered when your child reaches college age. Or save for future health expenses with tax-free dollars by investing in a Health Savings Account. • Pay down your mortgage or student loans. Make an extra payment on your mortgage or student loans each year to save money on interest while reducing the term of your loans. Be sure to inform your lender that your extra payments should be applied to principal, not interest. • Invest safely with U.S. savings bonds or municipal bonds. The U.S. Treasury allows for savings bond to be purchased using your tax refund for as little as $50. Savings bonds earn interest for a maximum of 30 years. • Invest in your current home. Use your refund to invest in home improvements that will pay you back in the long run by increasing the value of your home. This can include small, cost-effective upgrades like energy-efficient appliances that will pay off in both the short and long term – and with tax credits (as long as Congress continues to renew the program). • Donate to charity. The benefit is two-fold: Giving to charity will make a difference in your community, and you can also claim the tax deduction, if you itemize. Regardless of your income status it is important for everyone to file a tax return especially for lower income workers —even if their income is too low to trigger any federal tax liability—in order to potentially claim the Earned Income Tax Credit (EITC). Depending on a recipient’s income, marital status and number of children, the EITC can result in a refund of up to $6,318 to help them achieve financial goals.

7 Ways to Use Your Tax Refund

View Resource 7 Ways to Use Your Tax Refund
You already know how important health insurance is. Without it, a serious illness or injury could devastate you or your family financially. However, what about vision plans or dental insurance? Do you need a prescription drug plan? The good news is that many employers offer vision plans, dental insurance and prescription drug plans to their employees, along with basic health insurance. The bad news? It’ s not always easy to determine if these company-offered health plans are good buys. Health Insurance There’s little debate that if your company offers health insurance, you should sign up for it. Taking out private health insurance will cost you far more. The odds are that your company offers more than one form of health insurance plan. Determining which is right for you takes some research. An HMO plan is usually the least expensive of the health insurance options offered by employers. These plans will provide coverage for a broad range of routine and severe health matters. The drawback, though, is that you’ll be limited to a network of doctors. If your favorite doctor is not in the network, you will not be able to see this professional unless you are willing to pay for the costs of the visit and any treatment out of your pocket. Most employers also offer a PPO plan. PPOs allow you to see any doctor. However, you will pay more if you see physicians located out of your network. For instance, if you see a doctor inside your PPO’s network, your insurance might cover 80 percent of the costs of your visit or treatment. If you see a doctor outside the network, you may have to pay as much as 50 percent of the costs of your visit. Fewer employers offer an indemnity plan. With this type of plan, you can see any doctor you’d like. The provider will then bill your insurance company. Your insurance company usually will pay 80 percent of the costs of the visit and treatment. Analyzing costs When determining which employer-sponsored health plan to consider, it is important to look at the costs associated with them. First, look at the monthly fee. A portion of every paycheck will go toward paying for your health insurance coverage. This deduction will vary depending upon which of your employee’s health plans you choose. Next, look at the deductible. This is an important figure: It is how much you have to pay before your insurance coverage kicks in. For instance, you might have a deductible of $500. You’ll need to pay that much whenever you receive medical care before your insurance benefits kick in. There’s also coinsurance to consider. Once your insurance coverage does kick in, your coinsurance is how much you’ll have to pay for your insurance coverage. Your plan, for instance, might require you to pay for 20 percent of the costs of care after your benefits kick in. Voluntary coverage Your employer might offer voluntary health programs; policies that offer vision benefits, dental care or prescription drug benefits. Before signing up for any of these programs, you’ll need again to analyze their costs and benefits. Dental plans can cost from $15 to $100 a month. They usually provide complete coverage for routine dental care. However, when it comes to more complicated procedures, that coverage level usually drops to about 50 percent. So if you should need crowns that cost a total $1,000, you’d be responsible for paying $500 of that total. Vision plans are often limited, too. Most plans only cover the costs of routine eye exams and screenings while providing discounts for glasses and contact lenses. This does not mean that these plans are not worthwhile investments. It is important to monitor your health, and these supplemental medical benefits can help you do that. Just make sure that the benefits that come with these extra plans are worth the monthly cost. For instance, if you are investigating dental plans, make sure that your plan provides coverage for exams, x-rays, cleanings and basic care. You might also, if you have children who might need braces, want a plan that provides access to orthodontic services. When deciding whether a vision plan is a good buy, consider how often you can receive free eye exams and how big of a discount you’ll receive when ordering glasses or contact lenses. For a prescription drug plan, consider how large of a discount you’ll be receiving on medication. Researching health insurance and supplemental plans is no one’s idea of a good time. However, this research can dramatically boost your odds of choosing the right insurance plan for you and your family.

Types of Health Insurance Plans

View Resource Types of Health Insurance Plans
The hallmark moments in our lives — the ones that truly change our trajectory – are celebrated down every greeting card aisle in America. Beyond “Happy Birthday,” “Bon Voyage,” “It’s a Girl,” and “Congratulations on your Marriage” sentiments, there is always a card with a quaint water-colored cottage that says, “Good Luck in your New Home.” From the time we are young we are filled with hope that we’ll live a life full of card-worthy moments—including buying our own home. Getting to “Good Luck…” requires far more than crossing our fingers. After all, how to buy a house isn’t a course offered in school or something readily taught by parents or peers who have bought before us. We somehow still assume that we’ll have plenty of time to figure it out, but when opportunity knocks we can get swept up without being properly prepared. You can begin preparing now with these five steps to successful first-time home-buying. Step #1 Start by determining your budget. While seemingly obvious, this step goes beyond checking your current bank account balance. While saving for a down payment is a great start, you need to develop a well-thought-out budget. By calculating your take home pay, spending and future savings goals you will have a strong snapshot of your finances. Creating a monthly budget and actively monitoring it on a regular basis will not only help you get organized, but this new-found control can also help reduce stress. To help you decide the true amount you can afford to spend on a home, start looking at home prices that are two to three times your annual income. Remember to factor in closing costs, home improvements and moving expenses. Step #2 Know and embrace your credit. Credit is the key in so much of the home-buying process. Your credit score helps to determine your eligibility for borrowing money and for securing better interest rates. Remember, even if your credit score isn’t exactly where you want it to be the first time you check, you can absolutely work to improve it. Step #3 Choose a lender and get pre-qualified. Before you start digging through real estate listings and scheduling visits to open houses, you need to first work with a reputable lender to get pre-qualified for a loan. Doing so sends a signal to sellers that you are a serious shopper. To choose the best lender and mortgage for you, remember that it is a long-term relationship. Consider all of your options and select the one that is the best fit for you based on your relationship with the bank as well as: Step #4 Shop around and find a real estate agent. Especially for first time home buyers, a real estate agent will help guide the process and provide access to more home options than you’ll likely find yourself. Interview several buyers’ agents – these will exclusively represent you and not the seller – until you find someone who makes you feel comfortable and understands your needs, wants and deal breakers. Ask friends and family for agent recommendations too. Step #5 Make an educated offer. You’re almost there, but before you make an offer, crunch your numbers again. This time, factor in costs you may not have thought about such as the home inspection and appraisal fees, insurance, property taxes and any homeowners’ association fees you may have. Ask yourself if you can realistically afford this home including the cost for utilities, living expenses, and long-term maintenance of the property. If you are confident that this is the house and you can indeed comfortably afford it, move ahead with an offer. To avoid low-balling or paying more than necessary, be sure have your realtor look at other homes in the area (comparables or “comps”) to determine if the asking price is reasonable. If any immediate repairs need to be made, drop your offer so you can cover those costs. In the end, don’t make the rookie mistake that many first-time home buyers do by taking on more of a financial obligation than you can handle. You will know when you are ready to take the leap into buying a home, so take your time, save up and research as much as possible. This is your moment, so—Good Luck!

Tips for a First Time Home Buyer

View Resource Tips for a First Time Home Buyer