Best Loans in Limited Incomes

Loans are of different kinds and it is a good idea to have a sound knowledge of them before you decide which would be the most fitting option. Also, we will give you an understanding of what is required to avail the loans that you regard most suitable. As we discuss all the options it is important to remember that your credit score is a consideration that will decide your loan approval and the rate of interest in your loan. Let us have a look at the different types of personal loan Wareham that you could avail. 

Personal loan unsecured

Personal loans unsecured do not come with collateral like a house, car, jewelry or any other property. Generally termed as an unsecured loan, it is mostly availed by people with a high-interest credit card debt. They apply for these personal loans to pay off their debts sooner. How do you do it? Apply for a loan of the same amount that you owe on your credit card. If your loan amount is approved, you pay off the credit card loan and that saves you from monthly payments on your personal loan.  Your personal loan could demand lower interest rate depending on the credit and that would generally help you make a better saving. Personal loans are used by people for home building or purchasing. Some also take them for home renovation. Your credit score has a lot to do with your loan approval.

Personal loan secured

Secured personal loans are against a certificate or a deposit that offer security against the loan taken. These loans have low-interest rates as the element of risk involved in these loans are much less owing to the collateral and the lender is sure of a payback. The money saved on interest could be used as a good saving asset. However, in case of nonpayment of the loan, there is always the risk of losing the property. Whatever the collateral it could be taken away by the lender if you fail to pay back within the stipulated time. 

Payday loans

These are short term loans and usually, come with a high cost as they have to be repaid with the next salary within 7-60 days. The lender expects post-dated cheques that have to be written during the time of borrowing and the amount gets automatically withdrawn along with interest from your account. This is an emergency option to be used only when you are really out of cash and require urgent monetary help. These loans come with high fees which are much higher than personal loans that can equate to annual percentage rates of around 400% which is huge. 

Credit card cash advances

Your credit card’s cash advance too is a short-term loan, and you can borrow against the card's available balance. This has a high-interest rate and if not paid in time your credit score will plunge low. 

Conclusion

These are just a few loan options but a discussion with personal PCT Federal Credit Union https://pctfcu.org/ will give you a better idea on your loan eligibility and how you can get the right credit that fits your income and payback capacity.

Understanding Mortgage

While buying a home, mortgage loans are the best way by which you can have a dream house quickly. However, the terms are sometimes confusing and people back out thinking it may be complicated with a lot of paperwork. A mortgage in Wareham Ma is the easiest to get provided you find a dependable lender. Read our blog to get a better understanding.

For most citizens of America, a home is their biggest dream, and they go to any length to fulfil it. Homes can be easily procured by taking a mortgage. So, let us learn about the basics of a mortgage. What is it and how can mortgage in Wareham Ma help aspiring homeowners to have a house of their own?

What is Mortgage?

It is a loan that is taken to finance a home. This is also known as a Mortgage loan, an easy way to buy a house without full upfront payment.

People aspire to buy homes but do not have the full money to pay for the house out of their pocket, choose this process of payment. This is also used by some investors to free up funds for investing elsewhere. 

However, there are some qualification criteria for being eligible for a mortgage. The person taking a mortgage loan should have a stable income. The debt-to-income ratio should be 50% and all credit scores should be good. For conventional loans, the score should be 620 and for FHA loans 580. 

Difference between Loan and Mortgage

A loan is a financial agreement where one party receives a lumpsum and has to pay back within a term. This could be for anything. 

A mortgage is a loan specifically finance for purchasing a property. However, this is a secured loan with collateral which the borrower keeps with the lender in case of inability to pay back. When it comes to the property, or a home purchase, the collateral is your home and if you are unable to pay it the lender, they will take possession of your property as a foreclosure. 

When the mortgage loan is approved your lender hands over a sum which you pay for the property. You agree to pay back over a certain period with the decided interest and once that is achieved you fully own your home. 

In a mortgage, there are two parties involved, the lender and the borrower. A lender is a financial institution or a credit union like http://www.pctfcu.org/. 

The borrower is of course one who applies for the mortgage. 

Two factors determine the interest rate.

One of the current market rates and the level of risk taken by the lender to lend you the money. 

The current market rate is not in your hand.

However, what kind of a borrower you appear to be for the lender is dependent on you. If your credit score is high, then the lender finds you dependable. 

Nevertheless, if your DTI is low that will give you more money to make the mortgage payment. Then you are a low-risk investor for the lender and the interest rates too will be lower. 

The amount of money you can borrow is related to your affordability and the fair market value of the home is decided after an appraisal. The lender cannot lend an amount higher than the appraisal value of the home. 

A mortgage is extended to the borrower through verification. 

Some terms that you should be familiar with while taking a mortgage are:

Amortization is how the payment is broken up in the repayment period. A part of each monthly mortgage payment will also include the interest amount to be paid to the lender and the other part will go for repaying the loan balance or loan principal. 

Down Payment: The upfront money you pay to purchase your home. A large down payment means lower monthly payments. 

Escrow: As account set by the lender to meet the expenses of homeowner insurance and property tax deducted from the monthly payment and kept separately for this purpose. Not all mortgages need this option. 

Conclusion

Learn more about mortgage in Wareham Ma and avail the best from PCT Federal Credit Union. Contact us to get personal assistance of the best plans. We are there to help with the best mortgage options.

Credit Unions Help You Become Financially Independent

Planning a better life on credit is not bad at all. With proper training, you can manage your finances and make your life so much more comfortable. Credit firms work with this simple thought in mind and many financial advisors draw a map based on your income to help you live a better life. If life can move smoothly with better planning, then why not depend on the experts.

It is festival time, and you need to do a lot of personal spending to meet your family's needs. Yes, times are hard, but one must act according to their means and capabilities. At the same time, you do not want to let your family down. PCT Federal Credit Union is just the financial link who understands your desires and helps you to meet them. The facility they offer is so friendly that no bank in Wareham MA will be able to match their offerings.

Planning a financial journey

From an auto loan to any consumer loan, just have a word with them and they will calculate the best options for you. For example, if you are looking for a car loan, they offer loans not just on new cars but also on used ones. If you have financial support on your new car, they offer to refinance, that takes away a lot of your burden. They also have some great plans for home loans so speak to them in case your Christmas wish is a new house.

With help from the home equity conversion mortgage, you can take advantage of several benefits by supplementing your monthly income and planning out a credit line that will help you in several activities like home infrastructural improvements and soft home improvements. You can change home furnishings or remodel your rooms. Allow all your home dreams to come true with only low up-front closing costs.

Bank safety or credit surety?

Banks are always encouraging customers to take their services, as they claim to offer a wide range of choice. Sometimes visiting a bank and talking to their loan disbursement manager convinces you that a personal finance entity may not be the best decision after all.  In the long run, you will be losing much more money when it comes down to basic calculations. What counts is who is standing with you when you need something.

Knowing the Facilities

All you need to do in this personal finance institution is make 5 minimum deposits and you and your family are entitled to take advantage of their wide range of products and services. They also give you a chance to capitalize your income while at the same time maintain flexibility. Take advantage of the money market account where you just need to maintain a balance of $2000 while you can maximize your savings.  The interest based on your savings is a tiered rate account.  Also, you can make maximum gain from their certificate that can be bought for a minimum of $500 deposit. You can lock a sum for a fixed term. Also, make use of their member bonus incentives. With retirement, education benefits and a professional tax planner to help you chalk your financial plan, facilities here do supersede other banks in Wareham, MA.

Conclusion

Weigh the pros and cons and visit other financial bodies in Wareham, MA before deciding to invest in https://pctfcu.org/. Lifelong financial assistance is gladly rendered once you enter the PCT Federal Credit Union Family.

Set Better Life Goals with Personal Loan in Wareham

If you find a company that provides personal loans with no hidden costs, how would you feel? You have a lot of requirements to fulfil but are apprehensive of taking loans. This is mainly because you feel that the loan companies will cheat you leaving you in utter misery. You don't understand the basics of taking 'intelligent' loans.

Plan it

Reliable professional service providers set comprehensive financial goals for you that draws a roadmap helping you to meet your financial targets. They also help you plan method in which you can meet the targets and at the same time fulfil your requirements. Trusted loan dispersal companies offering personal loans in Wareham follow the online procedure to disburse loans which makes the procedure rather simple. https://pctfcu.org/ understands the value of happy homes and invites invitations from loan seekers without any hidden costs.

Seamless application

All one is required to do is submit an online security application to qualify for the loan. Being a personalized service, individual needs are taken to consideration. If all goes well and your loan is approved, you get fast funding. Once the loan is approved, you get funds immediately and can fulfil your needs for making additional changes in your home or buying something you had wanted or for taking a much-needed long holiday. 

The online facility helps the applications to be processed instantaneously and is completely free as online applications are not charged. The applications are short and to the point and only take a few minutes to complete. Users find it hassle free and easy. One can avail loans without having to fill up papers after papers with almost the same data. That is the reason PCT attracts customers for availing personal loans in Wareham.

Better rates

PCT loans comes with better rates than credit cards and affordable bank rates.  That is the reason for its popularity. There are so many things at home that get stuck merely due to the lack of funds, but with the advantage of personal loans in Wareham why wait when returning the loan amount will not press on you and at the same time you will find all your personal wishes accomplished with a little bit of planning. However, in case of mortgage loans, the risk is less for the company and you can make large purchases with it. For unsecured loan, the percentage rate will vary depending upon a number of conditions. The current credit history is taken in account along with other factors and depending upon that the lender assigns an interest rate. PCT weighs all the pros and cons and then settles on the best deal for the user.

Conclusion

Your credit score matters and based on that you can buy yourself a house, car or take that holiday you had always longed for. Realise your dreams with a bit of planning. Shake hands with PCT and consult with our personal loan calculator. A full proof plan will be worked out on your expected payback each month which will be dependent on your credit score and your earning. This gives you a good idea of what is expected of you even before you prepare yourself to take the loan. Many personal loan companies operate in Wareham and it is good idea to conduct an online search. You can also speak to a financial expert regarding personal loan in Wareham. Consult with our personnel before you take a decision.

Do You Know the Important Benefits of Personal Loans?

The idea of having a stable lifestyle is a dream for every individual, but to acquire that state is the most difficult task in the world. To achieve that state you can take any other route in terms of finances, but taking personal loan in Wareham is an appropriate thing to do. However, people often have second thoughts, and that is exactly why you should understand the benefits of taking personal loans. Some of the benefits are as follows:

• You get complete security for loan tenure and full assistance regarding any query
  
• Low and fixed interest rates throughout the loan tenure
• You will not have to provide any security or collateral
• A financial security with long-term repayment policy
• No hidden charges to cringe later

These benefits are some of the most satisfying things about the right personal loan in Wareham. However, you will often find it difficult to come across a reliable bank in Wareham. To help you get over that challenge, we would like you to get in touch with PCT Federal Credit Union. They offer reasonable personal loan plans for all related need.  Just visit http://www.pctfcu.org/  or dial 508-291-0777 to know more.

Busting Some Myths on Personal Loans

The personal loans are multi-purpose debts that can be used for a host of tasks including, emergency medical bills or funding home improvement projects. Overall, this type of debt is useful in solving financial crunches and helping you in reaching your growth goals.

As the manager for personal loan Wareham department points out, such loans can help in solving a lot of financial issues for a person – but often a customer tends to overlook them. It mostly due to a lack of understanding of how the personal loan schemes work, or how to best utilize them.

Here are some of the biggest myths associated with personal loans and the truth behind it:

     1. Personal loans are expensive

Personal loans do charge interest, but when comparing with the credit card – the annual percentage rates are marginally less. Loan applicants who have a higher credit score will automatically be eligible to get lower interest rates for the mortgage. Additionally, the loyal consumers are offered an additional loyalty bonus from the bank.

As financial manager points out, in most of the case the rate of interest for personal loans is calculated a bit differently from the credit cards interests. For credit cards, the rate of interest is variable. Thus, the APR for the credit card rises with the index rate. For personal loans, the index rate is somewhat fixed – making the interest rate stagnant throughout the life of the loan.

     2. Personal loan application involves a lot of paperwork

Contrary to popular belief, personal loans do not involve you filling out numerous paperwork, and signing multiple papers. However, now the situation has changed and with the help of technology, the process has simplified. You can apply for the loan online and the bank will follow up with you.

For the sake of simplicity, keep your review documents handy and upload them as the requirement arises. This facility is limited, mostly, toward the customers of the bank. In case you are not a member of the bank, then you might not be eligible to apply for the loan online. It is recommended to verify the same before starting the process.

Overall, personal loans are a helpful aid in solving financial emergencies. The personal loan Wareham department of PCT Federal Credit Union could help you in filling out the details for consolidates mortgages and help in getting the amount. To know more, visit http://www.pctfcu.org/ or call 508-291-0777.

Five Important Things for Choosing a Credit Union

There will come a point when you will have to choose a bank or a credit union to settle your financial matters. It does not matter if you are new to banking or switching your selection, you will come across a challenge of selecting the right one. To help you in choosing the right credit union or banks in Wareham, we have prepared a few factors to consider before you make a decision. If your choice of the credit union has all these factors, then know that you are making the right choice.

• Low-Interest rates

• Online banking features

• Brach availability

• Ease of deposit

• Security of your fund

These five points are some of the most important factors that will help you decide whether to choose a particular bank in Wareham. However, it is often easy to be confused while selecting a suitable bank. If that is the case with you, then filtering your search with the help of these factors will let you choose the right credit union. You can also get help from PCT Federal Credit Union; they have a reliable reputation in the market and known as one of the trusted banks in Wareham. Just visit http://www.pctfcu.org/ or dial 508-291-0777 to know more.

Five Hacks to Save Money for Your New Car

Buying a car is probably the first big purchase we make in our life. Most of us opt for auto loans to buy a new car and often without the down-payment. However, the loan comes with interest, and it can, in the long run, increase the cost of the car by a few thousand dollars.

The executive handling auto loans Wareham MA at a credit union explains how. When we buy a car for US$20000 and take a loan for four years at a 6% interest without a down payment, you will end up paying close to US$2600 extra as interest. On the other hand, when you pay a down payment for US$1,500 is made for the same car, with four percent interest for three years, ends up shelling out US$19,662.84 for vehicle1.

So, in this scenario, paying the down payment seems a favorable option. Also, since the car’s value depreciates at a tremendous rate, paying an auto loan for an extended tenure doesn’t seem to be a good decision – finance-wise.

How to save for down payment?

Now that we have proven why you need a down payment for buying your vehicle let us learn how we work towards it.

     1. Setting up a realistic figure for down

 Before proceeding with saving for the down, try to set up a realistic estimate for the same. Choose a suitable price range for a car – one that does not put a hole in your pocket – and work towards saving a down payment. Usually, as a thumb rule, try to save around 18% to 20% as down for a new car. For used vehicles, generally, 10% is enough.

Ideally, the more money you can save as down payment, the better deals you can expect from the dealership.

     2. Open a savings account

The savings account will be a safe house for your money. Open in a separate account for the purpose, so that you are not tempted to pull up the cash for other expenses. Saving the money in a high-interest savings account can fetch you an additional income in the future. If you have time, buy a certificate of deposit for the same.

     3. Spend carefully

When saving for a major purchase, you have to be careful with money. In these times, a thrifty attitude is always beneficial. Cut down unnecessary purchases and work towards bringing down existing expenses like while grocery shopping, phone, and internet connection. The money you will save should be redirected to your savings for the car.

     4. Setting up a budget for car-related expenses

Buying a car is one part of the journey, maintaining it is another. You have to work through other ongoing costs like insurance, fuel, and other maintenances charges. As a thumb rule, the cost of insurance premiums is determined by the credit score, age, and driving record. To make it work, before choosing insurance for your car, go for an insurance shopping.

     5. Trading the existing car

This hack is suitable for people who own a car and want to buy a new car. Selling the old car at a favorable amount can help you in getting closer to your goals. Selling your car on your own will fetch you a higher price, but can be time-consuming at the same time. Several online car appraisal tools can be used to estimate the car’s value – making your job easier.

Apart from that, you can take a side hustle for an additional income that can help you achieve the dream amount quickly. Overall, with some patience and perseverance, you can easily arrange the down payment for your car. After arranging the amount, head to your car dealership to make the purchase.

However, here are a few things to remember while financing a car:

     a) Car’s value depreciates quickly, so paying interest over an extended tenure is not a smart decision

     b) ALWAYS choose a car you can afford while purchasing a vehicle on an auto loan

Your car is probably the first big purchase you will ever make in your life. With some intelligent savings, you can buy your car at a cheaper rate. 

The auto loans Wareham MA department of PCT Federal Credit Union can help you in financing the car. To know more, visit http://www.pctfcu.org/ or call 508-291-0777.

Reference from

     1. https://www.nerdwallet.com/article/loans/auto-loans/car-loan-calculator

Three Efficient Hacks on Doing the Taxes on Your Own by Bankers

Before we begin, answer a question of mine.

Last year, who did your taxes?

If you have hired someone to file your taxes, then fret not you are among the 59% of Americans who outsource their tax filing to a professional.

However, as the officers of credit union and banks in Wareham MA point out, doing your taxes by yourself not only saves you money but also helps you in auditing your finances.

Filing your taxes can be a tedious process, and might take some time to complete. But, at the end of the process, you will find yourself enlightened about your current financial condition. There is a high chance you might discover new strategies to save money, as well as create new modes of investments.

Hacks to file taxes on your own

Here are three popular hacks to make the tax-filing process easier as presented by the bankers:

     1. Collect important documents

Before embarking on the humongous task of filing taxes personally, it is essential to collect all the paperwork required for the job. Also, gather the previous year’s tax return – to make the job easier. Gather your employer’s details and the W2 forms for the job.

     2. Always sit before-time to make the filing less stressful

Individuals with one job, and lesser financial responsibilities, the entire filing process can be wind up in two to three days. However, filing the taxes before the deadline will save you late fines. These fines can range up to 5% of the unpaid taxes.

     3. Don’t miss state taxes

You might be expected to pay state taxes, depending on the area of your residence. The update on a state tax return can be found in the state department of revenue website, and file accordingly.

What do you need to file your taxes?

Well, after a lengthy discussion for filing taxes and hacks surrounding it – let discuss what you need to file taxes. For starters, you will need some time and plenty of patience for the job. Investment officers at banks in Wareham MA mention that people with a single source of income – and fewer financial debts – will need a lesser amount of time to file the taxes. And, overall, the paperwork will be somewhat straightforward. In these cases, using the 1040EZ form is recommended.

To know about the investment and tax saving and tax filing update, you can always reach out to PCT Federal Credit Union. Visit http://www.pctfcu.org/ or call 508-291-0777 to know more.

When Refinancing Personal Loan Becomes an Intelligent Choice?

The loan refinancing, simply, is the process of replacing the existing loan with a new one. According to a few financial experts, refinancing can assist in managing the loans, as well as save some money in the long run. However, as personal loan Wareham credit union financial officer points out refinancing might not be the right for everyone.

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Here are some of the scenarios where refinancing can be a good idea for you:

Good credit score

Debtors with a good or excellent credit score are usually offered loans on lower interest rates. People who pay their loans on time, witness a rise in the credit score. In these circumstances, getting a refinanced loan can be a good option.

Need to pay loans faster

Individuals who can pay higher monthly payments for a loan can refinance the loan to short-term debt. It will bring down the interest, making it possible to pay the loan a faster rate. This strategy would work best for people with a long term loan, and refinancing helps in getting a better rate of interest.

Lower payments

With loan refinancing, the repayment term can be extended – meaning you will have to pay lower installments each month. It can help in improving your cash inflow, and the extra money can be used as an emergency fund.

But it is important to note that, longer loan repayment means that you have to pay more in interest – a real Catch 22.

Changing from variable to fixed interest rate

Individuals paying variable interest on their loans can refinance the loan for a consistent monthly payment.

You have to note that refinancing the loan does not mean debt is waivered off. It simply means the debt has shifted from one format to another.

To know more about personal loans and debt refinancing, you can reach out to personal loan Wareham credit union – PCT Federal Credit Union. To know more, visit http://www.pctfcu.org/ or call 508-291-0777.

Credit Unions vs. Big Banks – Which one to choose?

Stashing your money in a financial institution is the right decision, as your hard-earned cash won’t grow laying hidden underneath your mattress. But where should you invest your money? Should you save the money in a credit union or keep it in a bank? Before setting up a savings account in either of the institutions, you have to remember a few common differences in both the institutions.

While credit unions offer higher interest rates to the members, in a bank you will get better customer service. Also, banks have a bigger number of branches giving you quick access to your money in the time of need.

Also, while banks are owned by investors and run on a profit motivation, a credit union is owned by its members and run on non-profit motivations. The credit union aims to keep the saving interest rates higher, their service fee lower.

Before investing in credit unions or banks in Wareham, do ask yourself the following questions:

   1. Fee structure, and how much do they charge?

Usually, the financial institutions charge a service fee, overdraft fee, and monthly maintenance from their consumers. While one group of financial advisors point out that banks are comparatively expensive for the checking account. But some advisors beg to differ on the ground. The best way to know about the respective institution’s fee structure is to politely ask them.

   2. Online banking facility

While banks were the pioneers in bringing in mobile banking facility into the financial sector, the credit unions were not far behind in adopting the technology. Remote banking helps the consumer in payment of the bills, making transactions, or order checks. Endure whether your chosen financial institution offers this service.

   3. Number of locations

In case you are interested in money deposit and withdrawal service, verify the number of accessible ATM branches the said institution has at a specific location. On the contrary, if you are more interested in in-person services, inquire about the institution’s number of local branches.

Overall, before going with the credit unions or banks in Wareham, verify whether the said institution can help you in achieving your financial goals. The PCT Federal Credit Union, a Wareham-based credit union, offers many facilities as well as financial advisory to their members. Go to http://www.pctfcu.org/ or call 508-291-0777 to know more about money matters.

Managing Mortgages with COVID-19 Crisis

With the coronavirus outbreak, most industries and their respective consumers are facing financial hardships. Millions are now facing unemployment, and it seems the situation is heading for the worse in the coming times. Federal relief programs like unemployment insurance and Families First Coronavirus Response Act (FFCRA) is helping the US citizens in the time of need. But some financial experts point out these measures will not be enough for people with mortgages and other financial responsibilities.

As the credit union handling mortgages in Wareham MA puts it, these financial aids are just providing the prime nutritional funding to an individual. No way it (the funding) can cover the loans and mortgages taken by an individual. Several financial experts state that with borrowers without a definitive source of income, one can expect the following three things happening:

1. Request for forbearance

With time, the financial institutions and the credit unions will be flooded with requests from the borrowers to understand their current situation and seek forbearance.

2. Rise in outbound collection

Secondly, the financial institutions will witness a surge in the number of past due accounts. People who do not belong to any government-sponsored mortgage program or borrowers who failed to proactively did not initiate a conversation with the banks earlier would fall under this category.

3. Liquidation of assets

Last in the chain of events would liquidation of assets in the event of forbearance tenure. In most cases, families who could not get back on track would end up either liquidating their assets or setting up a repayment plan for the mortgage.

Financial Action Plan during the crisis

These are tough challenges, and we were not ready for them. The credit union, dealing with mortgages in Wareham MA, points out lenders (like them), as well as the borrowers, have to gear up for the change and develop suitable workarounds. In this situation, we can:

i. Taskforce

Start with forming a task force. The job of this command center would be to collect all the intel available and process the data for the resources.

ii. Working with the new normal

We have to adjust to the new normal and revise the way we function. With revised guidelines and changes in federal policies, there needs to be well-documented paperwork to ensure the rightful utilization of the resources.

Advice for borrowers

In the moment of crisis, borrowers must look into the following options to help them manage their mortgage:

a. Seeking assistance from the lenders

Many federal loan agencies have made provisions for the debtors affected by the financial crisis created by COVID 19. Few of them are offering penalty-free forbearance for almost 12 months, without impacting the credit score. Additionally, mortgage modification schemes are also being introduced. Private lenders are also coming forward, and offering waivers for COVID impacted debtors.

Mortgagors looking for relief in the current financial crisis should proactively approach the lender and discuss the available options. The process might take some time to complete but bear with the situation. The lender can demand proof of financial hardship before approving the relief on the mortgage payment. You can offer the pay stubs to verify your financial crisis.

b. Using the home equity

Home equity could help finance your mortgage. If your home has earned good value in equity, then it could be a good time to liquidate the value for cash-out refinancing. There is some difference between the regular refinancing and cash-out refinancing. 

c. Refinancing the mortgage

In situations where the lender does not agree to forbearance, you can look into refinancing the mortgage. Refinancing the loan means you are taking a new loan pay off the mortgage, at a revived interest rate. Although most refinancing institutions are currently overwhelmed with refinancing requests, some small lenders and community credit unions can come in assistance.

The mortgage management in the time of need could make it difficult for anyone with financial responsibilities. To make the matter easier, PCT Federal Credit Union is helping the Wareham community in managing their finances. You can reach them at http://www.pctfcu.org/ or call 508-291-0777.

Should You Go for Debt Consolidation?

How many monthly loan repayments do you make?

Let me guess – currently, you might be carrying home loan, student debts, an automobile loan, and some amount in credit card debts. Most of us, depending on our current financial portfolio, carry some amount of loans with us, for an extended tenure. Added to the mix are bills and some other mandatory payments expanding the monthly expenditure drastically.

Each loan comes with its own set of interest rates, due date, and payment gateways – making the debt repayment a stressful process. You have to keep track of a whole lot of details, to make the payment, making the entire process cumbersome and lengthy.

One way out of this entire lengthy process is debt consolidation with the help of a personal loan. According to the credit union handling personal loan in Wareham, a borrower can combine all his existing debts and make a payment via an approved personal loan. This way, you make only one payment at the end of the month and get a lower rate of interest on all consolidated loans. Additionally, debt consolidation does not impact the credit score.

However, before you head for a consolidating your loans – you should thoroughly consider the pros and cons. You see, debt consolidation is a good idea, but it is not for everyone.

Let’s learn about debt consolidation a little more – before signing out the dotted lines – to make a learned decision.

What is loan consolidation?

In banking terms, loan/debt consolidation is a process of combining all the existing loans and paying them off with a single mortgage, usually an unsecured personal loan. Prospect of combining the loans and making a once a month payment, with a lower rate of interest and lesser monthly payments makes loan consolidation a favorable for people with student loans, outstanding credit card debts, or some other liabilities.
 

How does it work?

Since loan consolidation is a simpler way of paying off the loans, most of the time borrowers take up this loan to pay off their existing debts. After the loans are paid off, they (the lender) has to make the payments towards the new loan on a new interest rate. Usually, banks or credit unions offer personal loans. However, few online lenders have recently introduced personal loans into their offered services.

One thing to note here is that debt consolidation does not eliminate the existing loan – it just transfers the existing loan from one lender to another. For consumers looking for loan relief, it is not the best option.

When should you consider it?

According to experts, there are two scenarios where loan consolidation is helpful:

1. Higher interest rates

People paying high-interest rates often consider consolidating their loans to pay less for an extended period. The floating/fluctuating rate of interest at times becomes expensive for borrowers. Additionally, the debtor might have received the loan at an inflated rate of interest (due to lower credit score during loan application). In this case, getting a personal loan to pay off the debt in one go could be a great idea.

      2. Difficulty in meeting the financial ends

Financial difficulties can make it harder for you to make the monthly payment on time. Sadly, failure to pay the loans on time can affect the credit score and make it more difficult for you in the future. With debt consolidation, this can be avoided.

If you are still interested in the personal loan, then you should approach PCT Federal Credit Union. Being in the community for more than five decades, they have been helping their members with their financial needs. For more insight on personal loan Wareham, visit http://www.pctfcu.org/ or call 508-291-0777.

Credit Unions – Are They a Better Option for Getting Loans?

For most essential investments – like housing or automobiles – we prefer to take a mortgage. Since none of us are endowed with huge wealth or a trust fund, systematic loans can help us in reaching our growth goals. Traditionally, banks have been the go-to option of many for their loaning requirements. But now, credit unions are slowly coming up as a preferred place for securing loans at an affordable rate.

Some of the benefits of getting a loan from a credit union instead of banks in Wareham MA include:

1. Lower interest rate
2. No or marginal processing fee
3. Easier loan approval

Key difference between banks and credits union include:

	Banks	Credit Union
Ownership	Banks are owned by an individual, group of individuals or organizations, or all three of them together.	It is owned by its members.
Intention	It runs with intentions of profit.	It runs with non-profit goals.

Additionally, credit unions offer loans at a comparatively lower rate.

Lastly,

Since members of the credit union are eligible to apply for a loan, you need to be a member first for loan application. However, membership is easy to obtain. The new members receive a membership kit, which contains their account number and a list of additional benefits. Non-members looking for a loan can simultaneously apply for debts and membership. 
    

You can approach the PCT Federal Credit Union instead of banks in Wareham MA for your loan requirements. Visit http://www.pctfcu.org or call 508-291-0777 to know more.

How to overcome five common fears associated with mortgages?

We all know that buying a home or a piece of real estate is among the biggest financial investments an individual does in their entire life. Many of us tend to opt for home-financing schemes, offered by banks or financial institutions, to sponsor our abode. 

These mortgages, as the officer handling mortgages in Wareham MA for a credit union points out, requires a bit of groundwork research and understanding on the part of the loan applicant. You see, applying for mortgages is an elaborate process – marked with multiple steps and formalities. These involve,

1. Some calculations on the part of the loan applicant
2. Fulfilling the loan criteria put forward by the lender
3. Coming forward with a respectable credit score
4. Bringing down payment
5. Considering other costs after the home is bought

These pointers, and similar other factors at a time, can cause anxiety and stress for potential homeowners. But don’t lose hope. There are ways to overcome anxiety and achieve the goal of buying your home.

Some common anxieties associated with home buying and ways to overcome them

Buying a home, especially for a first-time buyer, can be exciting as well as terrifying. The entire journey is nothing less than a rollercoaster ride – at the end of which you are handed your home keys. Here are some of the common worries in the minds of potential homeowners.

Worry Factor 1: Not enough credit score

The credit score is an important factor the lenders consider while choosing their potential borrowers. However, the good news is – it is not the only one. That being said, you cannot ignore the importance of a good credit score in the loan application.

Before placing the loan application, it is important to know what is the preferred credit score for the given financial institution and where does your credit score stand. If your credit score is not up to the mark, make sure to pay the outstanding bills and debts on time. Also, hard inquiries on the credit score can impact the negatively impact the credit score. So, beware of making them frequently.

Worry Factor 2: Not enough cash for a down payment 

Well, usually you have to pay 20% as a down payment for buying a house. But that is not written in stone. You can put a forward lesser percentage of the amount as down, but there is a catch. In these scenarios, you might have to put forward private mortgage insurance (PMI), which can be an added cost to your monthly installments.

As providers of mortgages in Wareham MA, a simple solution for this problem could be to ask the family member for the down payment amount as a gift. Although, the amount has to be thoroughly documented along with the statement of the give giver. Apart from that, you can seek assistance from the National Homebuyers Fund.

Worry Factor 3: Higher debt, lesser income 

Debt to income ratio (simply put, a portion of the income that goes to paying debts each month) is another factor considered by the lenders while considering you for the loans. Each lender has its own set of criteria, but as a ground-rule, it is better to minimize the number of debts you have. One way of doing so could be to increase income or to pay off some of the existing debts.

Overall, finding new sources of income and planning ways to repay the debts can help in realizing your dreams of buying the home. 

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Worry Factor 4: Too high-interest rates 

The interest rate on the mortgage is the overall cost of the loan over the tenure. A slight change in the interest rate can impact the overall cost of the loan, for better or worse. Usually, most homeowners stress on getting a lower interest rate against their mortgage.

However, a report presented by the Consumer Financial Protection Bureau revealed that close to 50% of the burrowers do not go for loan shopping before applying for a mortgage. Loan shopping can be beneficial leading to the most lucrative interest rates, especially for people with not so favorable credit scores.

Worry Factor 5: FOMMPs – Fear of Missing Mortgage Payments

We all know that buying a home could be one of the biggest financial decisions a person takes in their life. And the fear of not being able to pay off the home debts can be mortifying for many. Well as experts dealing with home mortgages in Wareham MA recommend setting up emergency cash funding for carrying out home maintenance and other associated costs after buying the property. The money would help in easing stress about missing out mortgage payments during the emergency home improvement project. 

It is ok to feel worried while making the biggest financial decision in your life. But, don’t let it come in the way of buying your own home sweet home. Your Wareham neighborhood financial institution, PCT Federal Credit Union, can help you in buying your home. Visit http://www.pctfcu.org/ or call 508-291-0777 to know more.