Author Archives: PBTC Blogger

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How to Pay Off Debt Faster

Debt can seem intimidating at first, especially when you’re looking at all the different balances across various accounts and credit cards. Paying off your debt will allow you to increase your income and have a little extra room in your budget for other things. By following a few simple strategies, you can pay off your debt faster than you think.

Follow the tips we’ve provide below to pay off your debt faster.

  1. Review the Amount of Debt You Owe – Find out exactly how much debt you owe. Being able to visualize the total amount of debt will help you create a realistic repayment plan.
  2. Create a Repayment Plan – Track the total amount of debt you owe with an Excel spreadsheet or free smartphone app. Make sure to include the minimum payment amount, interest rate and how much you owe total. List everything from credit cards and personal loans to student loans and your mortgage. Now, determine how much the monthly payment would be.
  3. Pay the Most Expensive Debt Off First – Sort your debt by highest to lowest interest rate and tackle the credit card or loan with the highest rate first. By paying it off first, you’re reducing the overall amount of interest you pay and decreasing your overall debt. Continue paying down debts with the next highest interest rates to save on overall cost.
  4. Pay More Than the Minimum Balance – When you have extra room in your budget, pay more than the minimum balance so you can pay the debt off faster.
  5. Stay On Top of Bill Payments – Use bill reminders and online bill pay to pay your payments on time – this helps you avoid late fees.
  6. Reduce Your Spending – Review your current spending and consider areas where you can reduce it. For example, skipping your daily latte or canceling your subscription to yet another streaming service.
  7. Change Your Habits – Consider your daily habits and routines and if there are adjustments you can make to save money without sacrificing your lifestyle too much. For example, bringing your lunch to work instead of buying it several times per week.
  8. Sell Unwanted Gifts or Household Items – If you have any unused items laying around, such as electronics, books, appliances, clothes, etc., consider selling them off or hosting a garage sale to earn some extra cash.
  9. Consider Debt Consolidation – This option allows borrowers to repay their debt by combining several high-interest rate loans or credit card balances into one new loan with a lower interest rate.
  10. Celebrate – Reward yourself once you reach your goals to maintain your newfound mindset. It can be easy to shift back to old habits, so it’s important to treat yourself occasionally to keep the momentum going.

Interested in debt consolidation or using online bill pay to simplify your payments? We can help! Visit our website to learn more about those options or contact a financial professional for assistance. We’re here to help you create a more financially stable future.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

home

How to Increase Your Home’s Value

Buying a home is a major achievement—and investment! Mortgage payments help build up equity in your home over time, but there are changes and upgrades you can make to your home in order to increase its value, resulting in a bigger return on your investment.

Homeowners should look for simple, cost-effective ways to increase their home’s value, especially if they plan to sell in the future. Take a look at these 5 ways to increase your home’s value and get a stronger return on your investment.

1. Spice Up the Landscaping

Whether you heard it from a real estate agent or on HGTV, curb appeal matters! You want your home’s landscaping to leave a good first impression—on future homebuyers and neighbors alike. Ways to improve your home’s landscaping include:

  • A well-maintained lawn – this is one of the first things people see and is a well-rewarded investment.
  • Neat and tidy garden – keeping your garden tidy leaves buyers thinking it’s easy to maintain, which is always a plus.
  • Clean and lighted pathway – having a clean pathway that’s lined with pretty plants or LED lights leaves a great impression. Repair cracks and pressure wash it to remove built up dirt or grime.

2. Paint, paint, paint!

One of the most cost-effective and easiest upgrades to do to your home is to simply paint it! Adding a fresh coat of paint to each room of your house gives it a newer, refreshed look and ensures that there is no discoloration behind long-standing furniture or stains left by tiny hands. Peeling or outdated paint can be a turn-off and repainting saves the prospective buyer from having to do it themselves. Focus on painting areas like the bathroom and kitchen as those tend to have more wear. Painting the interior can result in a 107% return on investment (ROI).

3. Upgrade Your Bathroom

When searching for a home, buyers consider bathrooms as some of the most important rooms in the house. Bathroom upgrades are some of the most cost effective to upgrade and ensure you get a return on your investment. Some ways you can upgrade your bathroom include:

  • Repainting walls in a neutral, modern coat of paint or removing old wallpaper
  • Painting or refinishing cabinets (or replacing them if you have more room in your budget)
  • Installing matching modern hardware on drawers, cabinets and closets
  • Upgrading lighting, faucets, showerheads, or installing a new toilet
  • Cleaning everything – rid the bathroom of rust stains, scrub all the surfaces and re-caulk areas around the shower, bathtub and tile

Keep the design neutral and light so you can appeal to as many buyers as possible, colors like light blue or gray work well. If you’re looking to save money by doing the bathroom upgrades yourself, plan for a few days of work. For every $1 spent on bathroom renovations, you can make back $1.71 in home value.

4. Upgrade Your Kitchen

Many consider the kitchen to be the heart of the home. Upgrading a kitchen can make a big difference for some buyers. Depending on your budget, you will have to choose between minor or major kitchen upgrades. Below, we’ve listed some ways you can do both:

Minor Kitchen Upgrades

  • Replacing cabinet doors and hardware (but leaving the box of the cabinet)
  • Upgrading to quartz or granite countertops
  • Installing a set of new matching appliances
  • Repainting and adding backsplash throughout
  • Putting in new flooring if existing is outdated, damaged or worn

Major Kitchen Upgrades

  • Adding an island to the kitchen
  • Installing fully new or custom cabinetry throughout
  • Upgrading to more high-end, energy-efficient appliances
  • Replacing flooring with higher quality options and adding or upgrading trim
  • Adding undercabinet LED lighting

If you’re leaning toward making major improvements to your kitchen, we can help! Give us a call or contact us via our website to discuss your financing options for upgrading your home.

5. Make Your Home More Energy Efficient

Upgrading your home’s efficiency can be more affordable than you think. Some of the most popular environmentally friendly ways to increase your home’s value include improving heating and cooling costs, adding energy-efficient lighting and appliances, upgrading windows, doors and siding. Even adding a smart thermostat makes it easier for a homeowner to control the home’s climate from anywhere and allow them to manage their energy costs more easily. Home tech investments can provide a strong selling point for your home and increase its overall comfort, convenience and functionality.

Some upgrades, such as installing solar panels, are more of an investment and you may need to consider financing options to make this upgrade happen.

How Do I Pay for Improvements?

There are several routes you can take when upgrading your home. For upgrades that need to be done professionally, or those you cannot pay for in cash, there are several financing options available.

  • Credit Card – This option may work for you if you are able to pay off the home improvements in a short amount of time.
  • Personal Loan – A personal loan is a great option if you don’t have enough equity built up for a home equity loan or HELOC. These loans don’t require you to put your home or other property up as collateral to get approved. The interest rate for a personal loan will be higher than a home equity loan, but lower than a credit card in many cases.
  • Home Equity Loan or HELOC – A home equity loan is similar to a personal loan in that you receive a lump sum of cash with a fixed interest rate and monthly payment. A home equity line of credit (HELOC) works like a credit card and comes with variable rates and a line of credit that you can borrow against.

If you’re ready to spruce up your home and increase its value, give us a call, apply for a loan or credit card on our website or schedule an appointment with our team to further discuss your options.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407724

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Looking Ahead: Retirement Savings

Even though it may seem far off into the future, it is never too early to start saving for retirement. If you have an idea of what you want your retirement to look like, it makes it much easier to plan for it and set goals in order to reach that vision. Here are some tips on how you can look ahead toward retirement savings.

Set Your Goals

After all your years of hard work, you’re looking forward to some rest and relaxation—but how will you finance it after you retire? Are you looking forward to traveling the world or just don’t want to worry about finances while you’re hitting the links? Envisioning what you want your lifestyle to look like and when you want to retire will help you determine how much you should put away for retirement.

Find Out How Much Money You Need

Use a retirement planner tool to determine how much income you may need in retirement. You’ll need to enter in your current annual income, how often you’re paid, pre-tax contribution to your retirement account, current retirement savings, estimated Social Security benefit, current age and desired retirement age. You can also adjust your contribution to see how the numbers change.

Save and Invest

Most experts say 10-15% of your income should go toward retirement. If you aren’t comfortable doing that right now, save what you can and increase it 1% every year until you can reach that goal. There are a variety of retirement plans you can enroll in; we’ve listed some of the most common options below.

  • Company sponsored plans such as 401(k), 403(b)
  • Individual Retirement Accounts (IRAs)
  • Roth IRA
  • Various investments such as mutual funds, stocks, bonds

Make Up the Difference

If there is a difference in what you’re saving now and what you may need for the future, there are many options for you to make up the difference.

  • Increase your deferral into your 401(k) retirement plan. Figure out how much it costs per week to increase the deferral by 1%. Then, continue to bump that number up as needed. A great time to do this is when you get a promotion or raise.
  • Make annual contributions to an IRA. This is similar to a 401(k) as it allows you to invest for the long-term and pay taxes on earnings later.
  • Contribute to your 401(k) to catch up to where you need to be.
  • Manage your debt now so you can have more money later, as long-term savings are crucial for your retirement!
  • Boost your savings by delaying retirement. By waiting just an extra year or two, you could help increase your savings and increase your overall retirement budget.
  • Work for a significant promotion or raise and save some of the additional earnings.

Review Your 401(k) or Roth IRA Yearly

Once or twice a year, set aside time to review your 401(k) or Roth IRA. Firstly, review your asset allocation—your retirement accounts should match your goals. Check your progress to see if you’re saving more than anticipated or if you’re not quite there yet and need to make some changes. If you’re not saving as much as you wanted, consider increasing your deferral, adding more money to your IRA or making an extra contribution to catch up to where you want to be. Also, update the beneficiaries on your accounts and make sure your contact information is current.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

money

6 Things You Can Cut to Save Money

Our main goal is to provide you tips to help you achieve financial success. Finding ways to save more and cut costs can be difficult when many things feel essential. Peoples Bank & Trust is here to offer our advice on certain things you can cut to save money! 

Limit Subscriptions 

If you have Hulu, Netflix, HBO and Amazon Prime – you probably don’t need all of them and aren’t utilizing them enough to make it worth the money. All the monthly fees add up so look at your subscriptions and see which ones you can cut. If you’re being mailed vitamins monthly, for example, go to the store and find the same vitamins. You’ll save money in shipping and get 2-4x the number of vitamins for the price of what you were paying for the subscription. 

Review Your Bills 

Are you paying for a router or phone line within your internet bill that you weren’t aware of? That could be costing you $50+ a month if you don’t catch little additions like that. Be sure to look at each of your bills to make sure you understand the costs and weed out any unnecessary add-ons. 

Switch Providers 

If your internet or cell phone bills are too high, shop around for rates to see if you can save yourself an extra $50 or $100 a month. It’s important to look out for you so that you are finding the best services for the best price. 

Reduce Utility Use 

Electricity costs account for about 12% of the average household budget. Does the air conditioning need to be running or can you open windows to get enough of a cool breeze? Hang laundry outside to dry instead of using the dryer, turn down the thermostat so it’s not heating or cooling too much, switch to energy-efficient lightbulbs, lower your water heater temperature and so on. 

Don’t Eat Out 

This means you will bring your own lunch to work and try not to buy coffee – make it instead. Costs can add up quite a bit in just one month without you realizing it! Do the math in your head of what making a meal at home costs vs buying something like that in a restaurant to encourage less eating out. 

Look At Insurance 

There are so many options when it comes to insurance. Be sure you are getting the best price. If you are married, try to bundle your home, auto and life insurance – this normally can get you a deal! 

We hope you take a look at this list and choose to cut most of these items out or change them, so you are getting a better deal. Store that new savings in a savings account with us so we can keep your funds safe but accessible. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

credit-card

Building a Good Credit Score from Scratch

The elusive credit score… you know it’s important, but what actually is it and how does it affect you? We’re here to explain how you can build a good credit score from scratch! 

Become an Authorized User 

Before you open your own credit card, becoming an authorized user on a family member’s card is a great place to start! As an authorized user, your name is attached to their credit card and their payment history is added to your credit files. Be sure to choose someone who has a good track record of paying their bills on time, so their on-time payments help improve your score. You don’t need to use or even have the credit card!  

Ask the primary cardholder to find out whether the card issuer reports authorized user activity to the credit bureaus. That activity generally is reported, but you’ll want to make sure — otherwise, your credit-building efforts may be wasted. 

You should come to an agreement on whether and how you’ll use the card before you’re added as an authorized user. If you would like to use their credit card, we recommend you’re prepared to help pay off what you charge to the card. It’s the kind thing to do for your family members and it also teaches you financial responsibility! 

Start with a Secured Credit Card 

If you’re building your credit score from scratch, you’ll likely need to start with a secured credit card. A secured card is backed by a cash deposit you make upfront; the deposit amount is usually the same as your credit limit. Secured credit cards aren’t meant to be used forever. The purpose of a secured card is to build your credit enough to qualify for an unsecured card — a card without a deposit and with better benefits. Choose a secured card with a low annual fee and make sure it reports payment data to all three credit bureaus: Equifax, Experian and TransUnion. 

  • Keep Your Credit Cards Open – Unless your annual fees are through the roof, it’s a good idea to keep your credit card open. Credit bureaus will count a closed credit card against you, so you can pay off the card and leave it open, but don’t close it. 
  • Limit Credit Card Applications – Opening multiple credits cards in a short time period will also be flagged by the major credit bureaus. While not always the case, they see this as a sign that someone is unable to maintain an income to keep up with expenses and pay off debt, so your credit score will go down. It’s recommended to wait at least six months in between credit card applications. 
  • Set Up Automatic Payments – Paying your loans and credit cards regularly and on time is one of the best ways to build a positive credit. Making these timely payments shows the credit bureaus that you can maintain enough income to pay off debts and are capable of paying them on time which improves your score. 

Take Out a Starter Loan 

Ask us about credit builder loans, aka starter loans! Typically, the money you borrow is held by the lender in an account and not released to you until the loan is repaid. It’s a forced savings program of sorts, and your payments are reported to credit bureaus.  

Another option: If you have money deposited in a bank or credit union, ask them about a secured loan for credit-building. With these, the collateral is money in your account or certificate of deposit. The interest rate is typically a bit higher than the interest you’re earning on the account, but it may be significantly lower than your other options. 

Are you ready to start building your credit score? Talk to our lenders today to apply for a loan! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS #407724

plane

Planning a Summer Vacation on a Budget

There is no doubt that we could all use a vacation after this year! But that doesn’t mean we’re ready to blow the entire bank account on a trip. You just need to know how you can get savvy about saving on your vacay. Check out these tips for planning a summer vacation on a budget! 

Set a Budget Before You Plan 

Just like we suggest not searching for houses or wedding dresses before you set a budget, you’ll save yourself some heartbreak if you set a budget before planning. This gives you a great foundation to start the rest of your planning. 

To make it even easier on yourself, you can establish the maximum price you’re willing to spend on travel for: 

  • Airfare or gas 
  • Hotel or rental stay 
  • Food 
  • Local attractions 

Time Your Trip Wisely 

Planning a budget-friendly summer vacation is easier if you can travel when other people can’t because travel prices—for hotels, flights and car rentals—are virtually always calculated using a surge pricing model that’s based on supply and demand. Your travel costs are always going to be more expensive if you plan your trip during busy seasons of the year. For example, airfare typically goes up in price during holidays when many people are expected to travel, like Memorial Day, July 4th, Labor Day, Thanksgiving and Christmas. And warm beach vacation spots are pricier during the prime summer season when kids are out of school. 

Try to travel when the local kids at your travel destination are still in school. If your kids don’t start school until September but the local kids from your vacation spot go back to school in August, you’ve hit the jackpot! 

Book Flights in Advance 

According to CheapAir’s “When to Buy Flights” guide, the best time to purchase tickets on most domestic flights is between 21 days and six months in advance, and the lowest price-range occurs between 52 days and three months before you plan to travel. You can sometimes find some last-minute deals and specials on airfare, but it’s better not to risk a high-priced ticket when trying to budget for your vacation. 

Book Plane Tickets One at a Time 

Passengers on the same flight often pay different prices for seats in the same section of the plane for a variety of reasons, but one reason is that many airlines group seats into price buckets. Unfortunately, if you book tickets in a bundle, it will only place you within these individual buckets unless you’re forced to separate. If you’re okay sitting apart from your spouse, book your tickets separately! If your kids aren’t old enough to sit by themselves, you can book two tickets at a time for you and your spouse to each sit with a kid or two but on separate parts of the plane. 

Pack Your Own Snacks 

It’s no secret that airport food is expensive! If you can manage to pack snacks for the airport and plane ride(s), you’ve already managed to shave a few dollars off your expenses! The safest way to ensure that airplane snacks aren’t confiscated by TSA is to bring pre-packaged items in your carry-on. TSA also allows parents or guardians traveling with children to pack extra fluid and liquid that exceeds the 3.4 oz limit. Check out a full list of items children are allowed to bring onto a plane here. Even if you’re traveling by car, it’s much more cost and time-effective to pack items for making sandwiches than it is to stop and buy food for every meal. 

For more ways to save, simply reach out to our team! The bankers at Peoples Bank & Trust are always happy to help you accomplish your financial goals, especially when they’re as fun as a summer vacation! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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How much home can I afford?

How much can I reasonably spend on a home? This is a question every single prospective homeowner asks before purchasing a house, and this is exactly what we want them to be asking! While buying a home is a great financial investment to start building equity and wealth, no one wants to be house poor. Create a budget for yourself by using the tips below or jump straight to our mortgage calculator. 

Save for a Down Payment and Closing Costs 

A down payment on a house is what you pay for the home up front. The larger down payment you can do, the lower your loan amount will be. Not only does a large down payment lower monthly mortgage bills, but it cuts the amount of interest you pay on the home loan over time. 

Many loan programs allow first-time homeowners to buy a house with zero money down. This is a great option for some homebuyers, but many decide not to take this route because they end up spending more money on interest over a longer period of time. 

Another upfront expense to purchasing a home is the cost to close the deal, aka the closing costs. Many first-time buyers forget to save for the additional fees that are required on top of your down payment. Fees to consider are: 

  • Loan origination fees 
  • Appraisal and survey fees 
  • Title insurance 
  • Homeowners insurance 
  • Private mortgage insurance (PMI) 
  • Mortgage points 
  • Property tax (typically 6 months of property taxes) 
  • Escrow fee to the agent who helps you close  
  • Attorney fees 
  • Miscellaneous fees 

Down payments are typically 5-10% of the house cost (20% is ideal) and closing costs are typically 3-5%. So, keep that in mind when saving for your dream home! 

Add Up Your Monthly Expenses 

Most home loans are meant to be paid off over a thirty-year period, making your mortgage payment a monthly expense. Before you decide on a budget for your new home, you need to add up your current monthly expenses to determine how much of your monthly income is left for your mortgage. Monthly expenses include: 

  • Monthly bills 
  • Loan payments 
  • Food 
  • Subscriptions 
  • Childcare 
  • Etc. 

If you have not received a raise or started bringing in supplemental income since your previous home purchase, but you want a bigger house, you’ll need to pay a larger down payment. The larger your down payment is, the less your monthly mortgage payment will be. Obviously, if you’re making more money these days then you have more monthly income for a mortgage payment. 

Calculate Your DTI 

Your debt-to-income ratio is also vital to consider when establishing your home budget. Similar to adding up your monthly expenses, DTI is the total amount of monthly debt you have compared to your pre-tax income. The lower your DTI, the more home you can afford.  

A recommended DTI is 28% of your monthly income or lower. To calculate the DTI you should aim for, use this formula: monthly income x 0.28 = DTI. Once you pay off enough debt to reach that DTI, you are likely to get approved for a better loan, depending on your monthly expenses that are in addition to debt. 

Get Your Current Home Appraised 

If you currently own a home and you’re planning to purchase a new one, it’s a smart idea to get your current home appraised. Knowing the value of your home can help you predict how much money you’ll make from it. Homeowners in the market to buy a new home often use that surplus to pay for the down payment and closing costs on the new home. 

Have more questions about how you can afford your dream home? Reach out to our friendly and helpful mortgage lenders today! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS #407724

computer

Protect Yourself from Identity Theft

The Federal Trade Commission defines identity theft as theft that happens “when someone uses your Social Security number or other personal information to open new accounts, make purchases, or get a tax refund.” This kind of theft not only steals your money, but your precious time as you work to figure out what accounts are compromised and finding safe ways to re-open them. Keep reading to prevent identity theft. 

Start by Educating Yourself 

The first step to protecting yourself from identity theft is to learn what type of information a thief might be after. Different types of identity theft where criminals gather information about you include financial fraud, medical identity theft, social security theft, child identity theft, tax theft and others. For example: 

  • Financial Fraud – spending money with your debit and/or credit card numbers.  
  • Medical Identity Theft – personal information such as SSN, date of birth, etc. used to receive medical services under your name. 
  • Social Security Theft – using your SSN to open fraudulent accounts in your name. 
  • Child Identity Theft – family members who use a child’s SSN, birthday and address to open fraudulent accounts in the child’s name. 
  • Tax Identity Theft – using your personal information to file a tax return under your name and receive a refund. 

Next Step: Protecting Yourself 

Use can these tips to start protecting yourself from identity theft right away. It’s much more easy to prevent fraud than it is to recover from it, so you can save yourself a lot of trouble by taking the initiative to follow our guidelines as soon as you can. 

  • Check your bank account activity at least once a week to make sure there aren’t any suspicious transactions. With an online banking account, you can quickly see all transaction history and alert your bank if you suspect fraud.  
  • Shred important documents instead of throwing them in the garbage. It’s odd, we know, but people even sift through trash to find things like bank statements with account information or medical bills with your personal information. Shredding it will make it impossible for someone to use paper documents against you.  
  • Guard your pin number when typing it into a card reader or ATM. You never know when someone is looking over your shoulder! Better yet, use the “tap” method on your card if you have it. Then you won’t be asked to punch in a pin at all. 
  • Don’t click on suspicious links in your email. Watch your emails for links that contain spam. If you ever receive an email asking for personal or banking information, verify it’s legitimate before replying. 
  • Make sure the sites are secure before making an online purchase. When banking and shopping online, check to make sure the sites security is enabled. A site with “https://” is secure, while one with “http://” is not secure. 

If you’re ever in the situation where you think your identity has been stolen, report it immediately! You can get in touch with your bank and the FTC and they will both be able to help you recover information or close fraudulent accounts. If you have more questions or you’re wondering if your identity has been stolen, contact us and we’ll set up a time to chat. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

money

How Can I Lower My Monthly Bills?

It’s the question that every household asks. What can I do to cut my monthly costs? And it’s a great question! No one wants to spend unnecessary money when there are mouths to feed and basketball uniforms to pay for. While you can tighten the budget by setting strict guidelines for yourself, your experts here at Peoples Bank & Trust have a few more realistic ways to lower monthly bills. 

Plan Meals Ahead of Time 

At first glance, planning meals ahead of time may not sound like it has anything to do with your finances but trust us – this can make a huge difference! When you plan meals ahead, you can write down the list of ingredients you need at the store that week. Taking a list to the store can help you cut down on wandering down the aisles and picking up food you don’t need. While getting groceries, you can also choose the store brand instead of the name brand! Lastly, having a plan in place for meals, with all the ingredients to cook them, will help you avoid eating out or ordering to your door. This saves you from spending extra cash on delivery fees, tips and expensive food. 

Refinance Your Mortgage 

Chat with one of our mortgage lenders to refinance your mortgage. We can give you options to try and lower your interest rate which can save you hundreds of dollars every month. The better your credit score, the better your interest rate will be. You can also check out our mortgage calculator to get an idea of how much you can save by lowering your interest rate just a little bit. 

Bundle Your Bills 

Bundling is when you purchase multiple products or services with a company to get a discount on each product. You can bundle with almost anything if you look into it! For example, most insurance companies will let you bundle services like home and auto insurance. You can also bundle: cable and internet, different TV streaming services (like the Hulu, Disney+ and ESPN+ bundle) and more. 

Set Up Automatic Payments 

We can’t stress this enough! Not only do many companies offer a small discount for setting up automatic payments, but it’s a great way to avoid late fees. That way you aren’t paying additional money every month that you didn’t budget for. We encourage you to check out the discounts for your wireless carrier, most will save you $5-$10 for automatic payments! 

Keep Track of Your Transactions 

Whether you do paperless banking or receive your monthly statement by mail, it’s easy to forget how costly everyday expenses are. Be sure to check those monthly statements to track how much you actually spent, instead of going off your own assumptions. We tend to think we spent less than we really did! You should also check individual transactions from throughout the month to be sure you don’t have any unwanted subscriptions. One way companies lure you in is by giving you a free trial, only after you give your credit card information, so you’re automatically charged after the trial. People often forget to unsubscribe if they weren’t happy with the free trial which is a really easy way to lose money. 

If you need more help managing your finances, check out other tips in our blog or contact us to chat. We’re here to help you save money and build your wealth to provide the future you want for your family. 

table

Home Buying 101

Becoming a homeowner for the first time is no easy task! You’ve probably heard horror stories from friends about overpaying or missing a crucial piece of information before committing to an offer. Here are a few tips to help you prepare for buying your first (or next) home so you feel confident in the home you choose to buy! 

Before You Buy 

  • Start Saving Early – the earlier you start saving, the better! Many first-time homeowners assume they just need to save for a down payment, but home buyers must also pay closing costs up front! Closing costs include the down payment, title insurance, homeowner’s insurance, property tax, closing or escrow fee and others depending on your lender. Plus, the larger your down payment, the less you’ll pay in interest as you pay off the home loan. 
     
  • Strengthen Your Credit Score – if you know you’re going to purchase a house in the next few years, it’s a good idea to take action to earn a higher credit score. Start by making sure your bills are paid on time, pay off debt you have and keep credit card balances low. 
     
  • Learn About Mortgage Options – there are several different mortgage options to look into before you commit to a home loan. These include conventional loans, Federal Housing Administration (FHA) loans, U.S. Department of Agriculture (USDA) loans and loans from the Department of Federal Affairs. 
     
  • Find First-Time Home Buyer Programs – many states will assist with your down payment! Check with us to see what programs we recommend. 
     
  • Decide How Much You Can Afford – it’s a good idea to set your budget before you start shopping or get pre-approved for a home loan. Check out this tool from NerdWallet to see how much house you can afford.  

While You Look for the Perfect Home 

  • Get Pre-Approved – ask your lender to draft a pre-approval letter to send to a potential seller when you’re ready. If it’s all sorted out beforehand, you can put an offer in on your dream house quickly. 
     
  • Don’t Look at Houses Over Your Budget – this is a great rule of thumb for sticking to any budget, don’t look at what you can’t afford! You don’t want to fall in love with something that’s not realistic for your income level and prior financial commitments. 
     
  • Create a Priority List – decide what home features are important to you. This will help you weigh the pros and cons of each house. For example, if an office space is more important to you than having a large backyard, you’ll be able to narrow down your search easier. 

When You’re Ready to Make an Offer 

  • Pay for an Inspection – not only do inspections help you negotiate the price of a home down, but they also help you know what you’re paying for.  
     
  • Negotiate with the Seller – don’t be afraid to negotiate! In most instances, the worst-case scenario is that the seller will come back with a counteroffer. 
     
  • Buy the Right Home Insurance – home insurance covers the cost to repair or replace your home and belongings if they’re damaged by an incident covered in the policy. It also provides liability insurance if you’re held responsible for an injury or accident. Buy enough home insurance to cover the cost of rebuilding the home if it’s destroyed. 

If you’re in the market to buy a home, reach out to us! We’re here to help you find the right home loan for your budget. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407724