fee waived on First Mortgage Loans!

Spring 2016
$699
fee waived on
First Mortgage
Loans!
Details on Page 2
In this issue:
Benefits of a HELOC 3
New Home Banking 4
Better than 0% Financing 5
Travel Visa Rewards 7
College Scholarships 9
and much more!
The Newsletter for Aerospace Federal Credit Union Members • www.aerofcu.org
Contents
$699 Fee Waived on First Mortgage Loans
Benefits of a Home Equity Line of Credit
New Online and Mobile Banking Features
You Can Do Better Than 0% Financing
Autoland’s Frequently Asked Questions
Treat Yourself This Summer, You Deserve It!
Eight Ways to Save on Vacation
Last Call for AFCU College Scholarships
Look Who’s Walking!
How to Do Children’s Allowances Right
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3
4
5
6
7
8
9
9
10
Holidays & Special Events
Memorial Day
May 30
(Branch Closed)
Independence Day
July 4
(Branch Closed)
Saturday Open House
July 9
(Open 9:00 a.m. — 1:00 p.m.)
Labor Day
September 5
(Branch Closed)
1
2310 E. El Segundo Blvd. | El Segundo, CA 90245 | www.aerofcu.org | (800) 795-2325
$699 Fee Waived on First Mortgage Loans
Spring is a beautiful time of year. It’s a time of transitions, rejuvenation and new beginnings. This
corresponds with the AFCU initiative of Going Green in 2016. The color green, much like the Spring
season, represents new growth, conservation and fresh starts. In an effort to add value to the AFCU
membership, we are taking additional steps to save our members money. During this year’s Spring
season, we are waiving the $699 processing fee on all First Mortgage Loan Products, including
Investment Property Loans, for applications that are received by July 31, 2016.*
We believe that this savings, combined with our competitive interest rates, creates an outstanding
opportunity for our members. We’ve put together some examples of how our Mortgage Loan Products
can help different segments of our membership. Take a look and see if you fall into one of these
categories and can take advantage of this limited time opportunity.
First-Time Homebuyers
• Take advantage of low mortgage interest rates
• Home prices are still low
• Opportunities to purchase that starter home
and build up equity over time
• Have a place of your own
• Create a safe and secure family environment
• Eliminate potential rent increases
• Improve your income tax position
Getting Ready for Retirement
• Low 15 year rates can help you to be
mortgage free in your retirement years
• Opportunity to lower your interest rate
and payments and still pay your mortgage
loan off early
• Downsizing, buying a smaller home
• Cash out for that Dream Vacation without
touching retirement reserves
• Create a liquid emergency fund
Call 310-336-5030, option 7 to speak with a knowledgeable mortgage team member today.
*AFCU members who apply for an AFCU First Mortgage Loan including Investment Property Loans by July 31, 2016 will have the $699
processing fee waived. Offer subject to change at any time without notice.
Federally insured by NCUA
2
Benefits of a Home Equity Line of Credit
Are you a homeowner in need of extra funds, or would you like to have some "rainy day" money,
but don't want to refinance your mortgage or incur high interest credit card debt? An excellent
alternative is an AFCU Home Equity Line of Credit (HELOC) where you can put the equity in your
home to work for you. This low cost loan enables you to have funds at your fingertips for unexpected
emergencies or planned expenses.
For those who are unfamiliar with a HELOC, it is a secured, variable rate form of revolving credit
secured by the equity in your home. Some key features of an AFCU HELOC include:
• Low rate of 3.25% APR*
• Loan amounts up to $200,000
(secured by the equity in your home)
• 10-year draw period, 20-year repayment period
Some examples of how you can use a HELOC include:
• Property Taxes/Income Taxes
• Home Improvement
• College Tuition
• Family Emergencies
• New Vehicle
• Debt Consolidation
• Dream Vacation
We’re
Here to Help!
Our knowledgeable staff can
answer any questions you
might have. Call 310-336-5030
option 7 today to talk with
an AFCU mortgage
team member.
The great thing about a HELOC is interest is only charged on the portion of money you actually use.
If you're thinking this is a great deal, but you're unsure if you'll need the money right away, have no
fear! Once you qualify for a HELOC, you can pull out funds whenever you need them during the
10-year draw period.
Act now to lock in the initial interest rate of 3.25%. Stop by to meet with one of our real estate
lending professionals in person or simply call the Mortgage Loan department at 310-336-5030
option 7 if you have any questions. For more information or a quick and easy way to get started,
apply online at www.aerofcu.org.
*The Annual Percentage Rate (APR) is based on the value of an Index. The Index is the Prime Rate as published
in the Wall Street Journal. To determine the APR that applies to your HELOC, a margin is added to the Index value
in effect as of each adjustment date (rate changes). The initial APR is set forth in your Agreement. Rate changes
occur on April 1 and October 1 of each year and are based on the Prime Rate on March 1 and September 1,
respectively. Assuming your rate is 3.25% at opening, your maximum rate may not exceed 9.25% and your minimum rate
will never be lower than 2%. The rate will not exceed the 18.00% maximum rate that a federal credit union can impose.
Rates and terms are subject to change without notice.
3
Get Ready...
New Online and Mobile Banking Featuring:
• P2P Payments
• Integrated Credit Cards
• Mortgage Loans
• Enhanced Money Management
Coming Soon...
4
How You Can Do Better Than 0% Financing
When it comes to auto loans, a 0% interest rate is a head turner. But it's not always the best deal.
Car dealerships generally advertise 0% offers in the summer when they're looking to make room
in the showroom for newer models. The offers come from the financing arms of the large auto
manufacturers, who unlike traditional lenders, profit directly off the sale of the car and don't
necessarily need the interest revenue.
But like any great deal—there's a catch. The New York Times reports that only about 10% of
consumers actually qualify for 0% interest loans, which require pristine credit—usually a FICO score
of 720 or higher. And the loans typically are reserved for a limited number of models and are not
available if you're shopping for a used car, which obviously tend to cost less than newer models.
These 0% loans often are paired with shorter-term loans, which cost you less overall but mean a
higher monthly payment. Before you head to the dealership, keep these points in mind:
Look at all available deals - Check for other offers, such as cash back. If you can get a rebate—which
lowers the overall price of the car—paired with a low-interest loan, it may save you more than the 0%
financing. So be sure to crunch the numbers.
Negotiate the price - Before you get to the interest rate, finalize a sale price and stick to it. Don't feel
pressured to accept expensive add-ons. Once the sale price is established, then talk about financing.
Look for a loan at Aerospace Federal Credit Union - At AFCU, we can give you a great deal when
you buy your next car. With rates starting as low as 0.95% APR* and outstanding service, financing
with AFCU is a smart choice. With terms from 36 – 84 months, you have the flexibility to spread your
loan out over time and have smaller monthly payments, or pay it off quicker in case you like buying
a new car every few years. If you need help figuring out how to get a great deal by combining
manufacturer’s rebates with AFCU’s financing, contact a Loan Concierge at 800-795-2325.
Auto Buying Service - If you want to buy a new or used vehicle,
but don’t want to go through the negotiating process, Autoland,
AFCU’s Auto Buying Service, can help locate the car you are
looking for today!** They’ll scour their network of dealerships
to find your vehicle and negotiate a price on your behalf.
This service is free to AFCU members and there is no
obligation to purchase the vehicle they find for you.
Let them make the auto buying process convenient
and hassle-free. Happy Car Buying!
*APR = Annual Percentage Rate. The auto loan rate you receive
will be based on your creditworthiness. 0.95% APR loan is for a
36-month term on a new vehicle. Payment per $1,000 is $28.19.
Rates subject to change at any time without notice and are
accurate as of April 1, 2016. Visit www.aerofcu.org for full details.
**Service not available in all areas.
5
Autoland’s Frequently Asked Questions
As an Aerospace Federal Credit Union member, you have access to both great auto loan rates and
better car buying with Autoland to help you shop smart and drive happy. Autoland works for you and
is designed to make your car buying experience easy by saving you both time and hassle.
Q. Who is Autoland and how does the service work?
A. Since 1971, Autoland has helped credit union members find their perfect car at a fair price. Your
personal Consultant will do all the work to find the car and options you want, secure a fair price and
coordinate your AFCU auto loan. They’ll even deliver your vehicle to your work or home!*
Q. Why should I shop with Autoland?
A. With Autoland, there’s no need to search all over for the perfect car only to settle for something
less and haggle for hours over price. With Autoland, you’ll get the vehicle you want at a great value,
including all available manufacturer incentives. There’s absolutely no obligation and your personal
Auto Buying Concierge is available to help you regardless of where you buy your next car.
Q. Don’t most people just shop online now?
A. If you’re looking to shop for your next car online, Autoland has you covered! Visit their web site at
Autoland.com to research and compare new vehicles or search thousands of pre-owned cars.
Q. Do Autoland’s pre-owned vehicles come with a warranty?
A. Pre-owned cars purchased from Autoland’s dealer partner network come with a standard
3-month/3,000-mile, limited powertrain warranty with $0 deductible. There’s also a 3-day/300-mile,
money-back return policy with no restocking fee for additional peace-of-mind.
Q. I have a trade-in…can Autoland help?
A. Absolutely! Autoland will help you sell your current vehicle even if you don’t purchase your next
car from them.
When you’re ready for your next car, meet Stephanie Dunn, your personal car Auto Buying Concierge
for Aerospace Federal Credit Union members. For a no-obligation consultation with Stephanie, call
714-258-4390 today!
6
Treat Yourself This Summer, You Deserve It!
Summer is just around the corner and that means it's time to start planning your vacation! You
work hard all year and deserve some time to relax, explore new destinations and spend time with
the ones you love. AFCU wants to help you achieve those goals and that's why we’re offering Bonus
Rewards on travel purchases made with an AFCU Platinum Visa® Credit Card between May 1, 2016
through June 30, 2016. So get out your calendar and start planning your vacation itinerary. Earn
Double Bonus Rewards* on hotel, airline, travel agency or tour company purchases with your AFCU
Credit Card during May and June of 2016. Plus, earn Triple Bonus Rewards* on cruises and rental
car purchases with your AFCU Credit Card during those same months. Go somewhere you’ve been
wanting to visit, remember that AFCU Platinum Visa Credit Cards have no international fees. The
adventure and relaxation will rejuvenate you, and the Bonus Rewards will make your travel all the
more enjoyable!
PLATINUM VISA
CASH BACK CREDIT CARD
• Earn 3% cash back on all cruise, train & rental car charges
• Earn 2% cash back on all hotel, airline & travel agency charges
• Earn 1% cash back everywhere else and all year long
PLATINUM VISA
REWARDS CREDIT CARD
• Earn 3 points per $1.00 spent on all cruise, train & rental car charges
• Earn 2 points per $1.00 spent on all hotel, airline & travel agency charges
• Earn 1 point per $1.00 spent everywhere else and all year long
Both cards offer the following extra benefits:
•
•
•
•
No Annual Fees
No International Use Fees
No Cash Advance Fees
No Balance Transfer Fees
•
•
•
•
Credit Limits up to $20,000
$100,000 Travel Accident Insurance Coverage
25 Day Grace Period for Purchases
24-hour Customer Service and Lost/Stolen Reporting
*Bonus Rewards offer good only on purchase transactions conducted May 1, 2016 — June 30, 2016. Cash advances and balance transfers do not qualify.
Rewards will be posted to your account at the close of each billing cycle. Fees and finance charges do not earn points. Rewards subject to change at any time
without notice. Bonus rewarded only to members in good standing and current on their Visa payments.
7
Eight Ways to Save on Vacation
Here's one reason to cut costs during your next vacation: You can relax knowing that you won’t
be deep in debt when you get home. Plan ahead to ensure that you get the most vacation for
your money:
1. Find cheap airfare: Book flights on Tingo or Yapta and be eligible for
a voucher if the airfare goes down after you've purchased your tickets.
Sign up for alerts from Airfarewatchdog; follow other travel sites on
social media as well. Call your airline agent and ask for a deal.
Use a regional airport—low-cost airlines often don't service the
large international airports.
2. Get creative with lodging: If you book by phone, ask
the desk agent to beat the online rate. Consider an
apartment or home rental instead of a hotel—you'll save
even more by cooking your own meals. Consider
booking a place to stay through airbnb.com.
3. Save on food: Make lunch your main meal. Lunches
often are 30% cheaper than the same entrées on a
dinner menu and you'll be less likely to splurge on
expensive alcoholic beverages. Stock up on snack foods
before you leave home and replenish your supply at local
grocery stores rather than convenience marts.
4. Look for vacation package deals: Package deals often give
great discounts. Find them on Expedia and Priceline, or daily
deal sites like Groupon Getaways and LivingSocial Escapes.
5. Use travel rewards cards: Make sure to use your AFCU Platinum Visa
Credit Card when booking your travel and while you're on vacation to earn
Cash Back or CU Rewards, plus there are no international transaction fees!
6. Book by your budget: If budget is more important than destination, search whichbudget.com
and get ready to be inspired.
7. Add a free destination: Find deals under "special offers" or by searching "stopover" on your
airline's website. You might be able to squeeze in an extra destination at little or even no cost.
8. Travel off-season: If you're flexible, travel in the shoulder seasons—just before
or after peak season depending on your destination. Prices are low, the weather
could be really nice, shops and restaurants are open, and there are fewer tourists.
8
Last Call for AFCU College Scholarships
The AFCU understands the value and importance
of education. Every year we award $1,000 college
scholarships to five graduating high school seniors.
Applicants must be AFCU members in good
standing. All applications must be received by
April 30, 2016.
For complete details and to download an
application visit www.aerofcu.org. Who knows,
the next winner could be your son, daughter,
niece, nephew or grandchild!
Look Who's Walking!
The AFCU staff joined the AEA Walking Club for their “smoothie walks” to Jamba Juice in Manhattan
Beach. It's a great way to refresh past acquaintances, enjoy some sunshine and fresh air and “chill”
with nutritious and delicious smoothies. The AEA and AFCU alliance is a testament of supporting
the personal well-being and financial lifestyle of the employees affiliated with The Aerospace
Corporation. It’s never too late to join the fun! The AFCU has a walking team that meets in front
of Building A1 every Wednesday morning at 8:30 a.m. (schedule permitting) for a 15 minute walk
around campus. Feel free to join us - a small investment of your time is well worth the benefit of
better health!
9
How to Do Children’s Allowances Right
One of the best ways to ensure your children grow up financially fit is to give them practice managing
money with an allowance. But what’s the best way to do an allowance? There are many theories.
Ron Lieber, personal finance writer for The New York Times, says he and his wife pay their 7-year-old
daughter $3 a week, no chores necessary. Lieber’s daughter puts $1 in a “save” jar and $1 in a
“give” jar for a cause of her choosing. The final $1 she can spend as she wants. Lieber’s reasoning
is that an allowance is a teaching tool, and making it contingent on chores muddies the issue. What
if the children decide they don’t want money? Do they still have to do the chores?
Lewis Mandell, a financial economist and professor emeritus at the State University of New York,
Buffalo, however, says unconditional allowances are a “terrible idea,” citing a 2000 study that
showed kids who received a regular allowance left high school knowing less about personal finances
than kids who received no allowance—though the differences were slight. One problem may be that,
like many Americans, kids aren’t the most diligent about saving. While 61% of parents pay an allowance, only 1% report that their children save any of it, according to a 2012 survey by the American
Institute of CPAs. The survey found that as children age, they receive a higher allowance, but across
all ages the average take is $780 a year. That’s enough to buy an iPad or a good start for a college
savings plan—if they were saving.
About 90% of the parents who paid their children an allowance required them to do chores to earn it,
but only 81% had spoken to their kids about money management. More parents had spoken to their
kids about good manners, their grades, and healthy eating habits than how to handle their money.
So how should you handle an allowance with your own children?
Use it as a teaching tool
Regardless of how your children earn an allowance, use it as a tool to reinforce good money
habits from an early age. Talk about finances early and often, and set a good example.
Consider matching their savings
To encourage savings, tell your children for every $1 they set aside for long-term goals,
you’ll match it in their AFCU youth savings account. Share the statements with them
so they can see their money grow.
Gradually introduce them to financial products
Deposit their allowance into an AFCU youth savings account, later a share draft/
checking account, and help them manage them wisely. For more information
about our youth products, visit www.aerofcu.org/youth.
Research shows that kids who learn to manage money at an early age are better
prepared to handle their finances when they leave home. And, ultimately, teaching
kids good money skills is a sound investment for parents, who often are the
ones helping their adult children when they run into real-world problems.
10
Presorted
STANDARD
U.S. Postage
PAID
WC
2310 E. El Segundo Blvd.
El Segundo, CA 90245
Cut out and mail in to win!
Youth Corner:
Win a $25
gift card!*
Have fun completing our coloring contest!
Congratulations to the winner from our Fall 2015 issue —
Sarah T. from Arroyo Grande, CA.
Name ____________________________
Age ______________________________
Address __________________________
__________________________________
Phone ____________________________
*Official Rules: NO PURCHASE NECESSARY. VOID WHERE PROHIBITED. Mail in your completed artwork, along with your name, age, address, and phone number
to be entered to win a $25 gift card! Limit one entry per child. One winner will be selected randomly and notified using the phone number provided. Odds of
winning depend on number of entries received. Entries must be received by May 31, 2016. AFCU is not responsible for lost entries. Must be younger than 18
years of age to enter. You may photocopy this page to use if more than one child in your family wishes to enter. AFCU employees, board members, committee
members, volunteers and their immediate families are not eligible to participate. First name and first initial of last name of winner may be published online or in
print. Submit entry to: AFCU, Attn: Youth Contest, 2310 E. El Segundo Blvd., El Segundo, CA 90245.