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With various financing institutions available today, finding the best deal on a home loan can be an overwhelming experience. When it comes to buying or refinancing a home, it is important that you carefully evaluate the pros and cons of different loan options. This will make sure that you are selecting the most suitable one according to your financial needs.

Given here are some of the important tips that can help you choose the right home loan from a credit union:

Loan Term: A lot of people opt for a longer term loan thinking that they can easily repay the amount. However, with this, they have to pay a greater amount of interest. On the other hand, short term loans can help you save thousands of dollars on your interest payments but requires a much higher monthly repayments to be made. If you have sufficient funds to pay off the loan easily, consider going for a loan with an optimum term and easy monthly installments.
Interest Rate: Mainly, credit unions offer two types of interest rates to the borrowers, fixed and variable. In the former one, the rate of interest and monthly repayments remain fixed throughout the loan tenure. In the latter option, the interest fluctuates as per the current market rates and so does the amount that you have to pay. It is advisable that you choose a fixed rate for a specific term and switch over to variable when the market rates are low.
Extra Fees: Besides the interest rates, you must also check out any additional fees or charges levied by the lender. These may include the application fees, lender’s mortgage insurance, valuation fees, break fee, penalty for late payments etc. All these can make substantial changes to your monthly repayments.
Additional Features: Make sure you clear all your doubts before signing your home loan contract. Ask your credit union if they offer redraw facility and if the loan is portable. This will help you to transfer your home loan to another property without having to carry out the entire process all over again. You should also ask if they offer any discounts for the repayments.

We, at Greater Central Texas Federal Credit Union offer low interest home loans in Killeen, TX. For more information, feel free to call us at (254) 690 - 2274.

Reasons To Open A Roth IRA

Roth IRAs are individual retirement accounts which promise tax-free income on retirement. Roth Individual retirement accounts are the best option for those interested in lower taxes and more retirement savings. Thus, you save after paying your taxes. It is a great form of investment for people of all ages. In addition to the tax advantage, Roth IRA’s allow you to use the money for different purposes other than as a retirement fund without being taxed or charged for the same. You can visit a nearby credit union for more information on Roth IRA’s.

If you are wondering whether a Roth IRA is a good investment option for you, here are some reasons in favor of this investment option:

Easy Withdrawal: The best thing about Roth IRA’s is that there are no restrictions on withdrawing money like in other retirement plans. You are free to withdraw any amount of money at any time for any purpose. This is helpful in case of emergencies when you might need quick cash.
Tax-Free Retirement Income: You are not expected to pay any taxes on the amount saved for decades. That translates into tax-free income in retirement. Credit unions offering Roth IRAs, charge tax only at the time of making the deposit but not at the time of withdrawing the principal amount and earnings. This also protects investors from future income tax raises.
Benefits To Your Heirs: Roth IRA’s are not only beneficial for you, but also for your heirs. The money in your account can be used by your heirs as tax-free income for the rest of their lives. However, the heirs will be subject to minimum distributions depending on their age at the time of the original account holder’s demise.
No RMDS (Required Minimum Distributions): Roth IRA’s do not impose any restriction on making contributions after a certain age (70 ½ years). Investors can keep on adding to their Roth IRA accounts irrespective of how old they get. They are not required to take distributions and pay taxes.
No One-Time Investment Amount Required: With Roth IRA’s there’s no pressure to invest a huge sum of money in one go. Most credit unions these days encourage members to pay steadily and comfortably by setting up automatic deposits. So you are saving without making much effort on your part.

For more information, visit Greater Central Texas Federal Credit Union at 3305 E Elms Road, Killeen, TX 76542 or call at (254) 690 – 2274.

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