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August 2010 - Why choose a credit union?

By “joining” a credit union, you become a member. As a member, you are not a customer, you are an owner. Credit unions are member-owned and operated, for the benefit of members. Banks and other financial institutions are owned by a select group of shareholders and those shareholders – not necessarily customers - are major beneficiaries of profits earned. Credit unions are not-for-profit organizations because all earnings go back to members in the form of lower loan rates, higher deposit rates, lower fees – and a higher level of personalized service.

Here are some things you should know about today’s credit union:

1. Product availability. While it was true years ago that credit unions tended to have a limited set of products, that’s no longer the case. Many credit unions – including Cornerstone – offer a full range of products, from checking and savings, to mortgages, lines of credit, personal and auto loans, and investment and insurance products.
2. Membership. Many years ago, credit unions were almost exclusively tied to a specific company – meaning membership was limited to employees of companies with credit unions. That’s no longer the case – anyone can find a credit union to join. Though some credit unions will have a few restrictions, you aren’t likely to encounter any obstacles, so just identify the one you’d like to join, and make the call!
3. ATMs. While many credit unions are relatively small and do not operate their own branded ATMS, you’ll find most credit unions are affiliated with national ATM networks and offer fee-free withdrawals from thousands of ATMs. (Find available Cornerstone ATMs through our ATM locater found here.)
4. Insurance. You have probably heard of FDIC insurance. Credit union deposits are similarly insured by the National Credit Union Association, an agency of the federal government just like the FDIC.

With the onslaught of new regulations hitting the financial services industry, the service and fee gap between banks and credit unions is likely to further widen. Credit card fees are on the rise. Some banks have already started charging checking account fees. Credit unions will continue to focus on providing the best possible rates and fees for their members, while continuing to stress personalized, friendly service.

Learn more about credit unions in these articles:

The Lifeline for College Students: Credit Unions

Why try a credit union?

Bye-bye, Megabank?

A Better Bet Than Banks?

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July 2010 - Understanding home equity loans.

A home equity loan, sometimes called a second mortgage, allows you to borrow money at a very competitive rate using your home as collateral. Your available equity is based on the appraised value of your home less the amount you currently owe on your first mortgage. There’s an added benefit of using a home equity loan: your interest may be tax deductible. (Consult your tax advisor for information specific to your situation.)

A home equity loan is an installment loan offering either a fixed or variable rate of interest for a set dollar amount and a set term.

A home equity line of credit is a revolving line of credit that works very much like a credit card – but the rate is typically much lower. You can borrow what you need, up to the amount of the limit of your credit line (which is determined by the available equity in your home and other factors) for a period of time defined as the “draw period”. After that, you’ll pay off the balance over a period of years.

Getting a home equity loan or line of credit can be a great way to make major purchases at very attractive interest rates. Just remember that you are using your home as collateral. If you are unable to repay the loan, you are risking your home.

Learn more about home equity in this article from Balance – a free financial education resource for Cornerstone members.

Find current rates and terms on Cornerstone home equity products here.

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June 2010 - BALANCE your budget.

Whether you need to develop a budget, save for your children's education, put away funds for retirement, or buy your first home, BALANCE can help. The BALANCE Financial Fitness Program is a free benefit available to Cornerstone members. From self-guided financial education modules to formal money management counseling programs, BALANCE can help you achieve your financial goals.

BalanceTrack: Personal Finance Education Center

These self-guided online courses can help you make better decisions about buying your next car, help your teenager learn how to manage that first checking account responsibly, teach you to protect yourself from identify theft, and more.

BALANCE Member Website

An extensive publications library, full suite of financial calculators, and an archive of electronic newsletters will provide you with the tools you need to make sound financial decisions.

Financial Counseling

Certified financial counselors are available Monday through Saturday to provide you with answers to a wide variety of money management, personal finance and credit-related questions. Whether you have a simple question or need more extensive counseling, this free resource is available to help you by simply calling 888.456.2227.

Want to learn more about this free member benefit?

Call your Cornerstone branch or test out the BALANCE hotline directly at 888.456.2227 today to improve your financial fitness.

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May 2010 - The skinny on credit card regulations.

Key Credit Card Changes

Sweeping changes in the credit card laws designed to protect consumers provide primarily good news for the millions of Americans who routinely say, "charge it." Key among these changes:

• Rate increases (other than those related to a change in a variable index) cannot be applied to existing balances unless a cardholder is delinquent
• Cardholders must be given 45 days notice of a rate increase
• Those under 21 will have to have either a co-signer or proof of income to qualify for a credit card

Good news for consumers.

The new law protects consumers from what sometimes seemed to be arbitrary rate increases on current balances. Under the new law, credit card issuers will only be able to increase rates on current balances in a few situations. Examples of these situations include increases on variable rate cards that occur when the rate to which the card is indexed increases, or when a limited-time promotional rate expires. Whereas in the past, payments beyond the minimum went first to pay off lower rate balances, now these payments will go against higher interest balances, helping to keep those interest charges from piling up. There are a variety of additional features of the new law designed to minimize over-limit fees, reduce finance charges, extend due dates for payments and generally provide more advance and clear notice of increases. Learn more here.

Protection for young adults.

The proliferation of credit card issuers showing up on college campuses in the past has often saddled young adults with more debt than they are prepared to handle. The intent of the rule that requires a co-signer or proof of income is to reduce the likelihood that those under 21 will get themselves into credit trouble.

Click here for a great article from BALANCE about credit cards and college students.

Shopping for the best deal.

Industry analysts predict the new law will make it more difficult for some to get credit cards. Additionally, because of a variety of new restrictions that will reduce certain fees for consumers, it is anticipated that there will be a return to more annual fees, and a reduction in rewards-type cards. So it pays to do your homework when shopping for a credit card. Rather than being swayed simply by short-term promotional rates or "freebies" offered for the sign-up of a card, pay attention to:

• The card's regular Annual Percentage Rate (APR). This is the interest you are charged on outstanding balances. If you carry balances, this will be the most critical point of comparison.
• Miscellaneous fees, like annual fees. It does pay to read the fine print!

For more educational information on credit and debt, access free articles from BALANCE, a free financial education and counseling service for Cornerstone members.

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April 2010 - Tips for financing or refinancing an auto loan.

It's no secret that the auto dealers have inventories they want to move. It's a buyer's market. But the fundamentals of getting the best deal haven't really changed. Long before considering a visit to a dealership, you need to know what you want to buy. Once you zero in on the model of car, the more flexible you can be on color and options, the more negotiating room you'll have. Know that there is a big savings between "sticker" price (what is actually printed on the sticker you see on the car) and "invoice" price (the price the dealer pays for the car). And in today's market, with rebates and incentives, know that paying below sticker price is a reasonable scenario.

Who gets 0% dealer financing anyway?
While it is true that there may be restrictions on the amount that can be financed, the number of months available to finance, and particularly, the credit scores required to qualify, 0% dealer financing is available for those who meet the guidelines. Many people will not qualify for 0% financing, but the prospect of getting that rate can lure people into the dealership before they've done their homework. So before you head straight to the dealer to see if you qualify, do all of the appropriate homework first to know what you want to buy, what rebates and incentives are available, etc. Finally, have a fallback plan for financing if you don't qualify for the 0%. Getting preapproved for a low interest auto loan before you ever walk on the first dealer's lot can give you more negotiating power and won't leave you vulnerable to a last minute dealer financed rate that could end up well above the enticing 0% advertised offer.

Should I refinance my current auto loan?
If you still owe at least 24 months on your current auto loan, chances are that rates have dropped enough to make a noticeable difference in your monthly loan payment if you refinance. Just do the calculations to see if it might make sense for you. Cornerstone can lower your rate by at least 2%* , so if you are paying considerably higher than that, use our handy calculator to see what the difference is in the monthly payment at your current rate and number of months left to pay, and what it might be at Cornerstone.* Stop by a Cornerstone branch today, call 615-385-6898 or email us. One of our loan experts will be happy to help you get preapproved for a loan or to talk with you about refinancing your current auto loan.

*Down to a floor rate of 4.0%APR. Actual rate may vary based on age of vehicle, credit score and other factors.

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March 2010 - Tax Time IRA Tips.

New Rules for 2010 Roth Conversions May Help You Save on Taxes

Many investors are familiar with the traditional IRA – an individual retirement account or annuity that provides a tax-deferred way to save for retirement. But many people are not aware of the Roth IRA alternative, an option that offers the potential for tax-free savings. Many are also not aware of the ability to convert a traditional IRA to a Roth IRA, to take advantage of the Roth IRA’s unique benefits. In the past, there were income limits that kept many traditional IRA owners from converting to a Roth. But beginning in 2010, the rules change.

No income limits for Roth conversions starting in 2010.

Before 2010, conversions from a traditional IRA to a Roth IRA were available only for those making $100,000 or less in modified adjusted gross income (MAGI). Beginning in 2010, though, the income limit goes away and everyone is eligible. Not only that, for conversions done in 2010, the taxes due when switching to a Roth IRA can be deferred and spread across two years – 2011 and 2012. For those considering a Roth conversion, that could provide real advantages.

Consider the differences.

Keep in mind there are distinct differences between a traditional and a Roth IRA:

Making the shift with a Roth conversion.

Deciding whether it pays to shift from a traditional to a Roth IRA can be complex, and just because you can convert starting in 2010 doesn’t mean you should. You need to weigh the possibility of future tax savings from a Roth conversion against the tax bill that will come due now. If you believe your tax bracket may be higher in the future, a Roth conversion might be the right move. But there are many issues to consider, including the product to select for your converted Roth IRA. Annuities are just one choice and can offer safety of principal, guaranteed growth at a declared rate and guaranteed income for life.

For more information about the new rules for Roth conversions in 2010 and the potential use of annuities when converting to a Roth IRA, contact Mick Anderson, the Investment & Insurance Representative located at Cornerstone Financial Credit Union at 615.385.6858.

All guarantees are based on the claims-paying ability of the issuer. If you are considering purchasing an annuity as an IRA or other tax-qualified plan, you should consider benefits other than tax deferral since those plans already provide tax-deferred status. Withdrawals may be subject to surrender charges during the early years of the contract. Withdrawals before age 59½ may be subject to a 10% federal tax penalty.

Representatives are registered, securities are sold and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (866) 512-6109. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members.

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February 2010 - Home sweet home: Smart financing tips.

Information in a January 28, 2010 article in the Tennessean indicates a positive momentum shift for the residential real estate market in Middle Tennessee:

In the nine-county Nashville area, residential real estate sales were off by 30 percent at mid-year but rallied in part because of federal first-time homebuyer incentives to end 2009 off 12.6 percent. "The fourth quarter was awesome," said Don Klein, CEO of the Greater Nashville Association of Realtors. Federal tax credits during the second half of the year gave housing a boost.

Whether you are looking to buy or refinance, or are considering accessing the equity available in your home, money is available to borrow and it can actually be a great time to take advantage of the benefits of home ownership.

Want to buy a home?
Here’s why now could be a great time:

• Home values have declined: there are some bargains out there.
• Mortgage rates are low.
• There are two federal tax homebuyer credits available on homes purchased by April 30, 2010 and closed by June 30, 2010 – one for new homebuyers and another for existing homebuyers who have lived in their current home for at least five years and buy a new primary residence. Learn more here.

Are you considering becoming a homeowner for the first time?

Cornerstone’s BALANCE financial education program can help. Read a brief overview on homeownership here.

Or get a more in-depth view of the home buying process, from mortgages to the closing process, through The Road to Home Ownership, a part of Cornerstone’s BALANCE educational series.

Could you save by refinancing your mortgage?
Today’s low rates make now a good time to consider a mortgage refinance. To know if refinancing at a lower rate will actually save you money, you’ll want to consider how long you’ll stay in your home and know how much it will cost you to refinance - there are typically several fees involved. Examples here.

Want to know more about the potential benefits of refinancing your mortgage?
Get the details in this BALANCE financial education article then call a Cornerstone loan counselor at 615.385.6898 to discuss your options.

Would you benefit from a home equity loan?
Using the equity in your home can be one of the most affordable ways to finance major purchases like home improvements or even to pay off high interest rate credit cards. Because home equity loans or lines of credit typically offer much lower rates than you can receive on unsecured debt like credit cards or unsecured loans, you can save a considerable amount of money by accessing this valuable financing source.

Not sure if you should consider borrowing against your home?
Read this BALANCE financial education article to learn more or call a loan counselor at Cornerstone at 615.385.6898.

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January 2010 - Put yourself in the driver’s seat.

Buying the right used car the right way can be a great financial decision for several reasons:

• You’ll be able to take advantage of that “immediate” depreciation that occurs as soon as a new car has been driven off the lot. In just the first year, that can mean as 20% or more.
• If you buy a newer used car, it may still be under warranty.
• Insurance premiums will be lower on a used car than on a new car.

So how do you choose the right vehicle?

Here are a few things you’ll want to do:

• Establish a budget.
• Determine what vehicles fit within your price range.
• Know the history of the vehicle you are considering. There are a number of services - like Carfax or Autocheck available that allow you to check the history of a particular vehicle.

How do you get the best deal on financing?

One of the best things you can do to increase your leverage when buying a new or used auto is to have your financing pre-approved in advance. Getting pre-approved doesn’t obligate you. But it does give you negotiating power. Whether you are buying from a private owner or through a dealership, finding out ahead of time what you can borrow and securing a competitive rate will prepare you to shop confidently.

There is a misperception that in today's economy, it is all but impossible to get a loan if you don't have a perfect credit score. While it is true that the rate you receive on a loan typically is dependent on your credit score, at Cornerstone our credit policies are the same as they've always been. It is our mission to help our members make sound financial decisions and to provide competitive rates and products to support their goals.

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December 2009 - Tax season is approaching...

2009 has been a financially challenging year for most all of us. Finding ways to reduce your tax burden – for now and potentially in the future – can provide some consolation. Some things to consider:

• Getting rid of “losers” in your portfolio – potentially offsetting gains with the losses or getting up to a $3000 deduction against ordinary taxable income (and then carrying forward any additional losses into future tax years.) Hurry! You must sell by the end of 2010 to take advantage of losses on your 2009 tax return!
• Making your traditional IRA contributions by April 15th 2010.
• Considering the conversion of your traditional IRA to a Roth IRA in 2010. New rules going into effect in 2010 provide an interesting conversion opportunity that could be advantageous – particularly if tax rates go up in 2011 as many predict.

Find more details, click here.

Click here for additional tips from the IRS related to the American Recovery and Reinvestment Act of 2009.

If you’ve changed jobs, had a change in family status, or had any change in your financial situation, we’d like to help. Consider reviewing your long-term savings and investment strategy. Visit us here or call Mick Anderson at 615.385.6858.

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November 2009 - Want to reduce stress during the holidays?

Get a game plan. Last minute shopping often means you'll spend more. Make a list, check it twice - and then stick to it.

Feel like you are headed into the holidays with more debt than you'd like? Consider a Holiday Loan at rates as low as 9.9% APR*. Pay off those higher rate credit cards, reduce your monthly payments or both!

Apply now , contact a Cornerstone loan counselor at any branch location, or call 615.385.6866 for more information.

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October 2009 - Creating a Personal Financial Directory

If you were to become incapacitated or die, how easy would it be for relatives or someone else to take over your financial affairs? Would they have to search through a mountain of paperwork? If you don't receive paper statements, would they even find out about all of your accounts?

No one likes doing funeral planning or other things that remind us of our own mortality. But death and injury are a fact of life. Creating a personal financial directory makes it easier for someone to cancel your accounts or otherwise manage your finances if you are not able to. You may also find yourself using it if, for example, your wallet is stolen and you need to notify financial institutions and creditors or you forget an online password.

All you need to do is set aside a few hours one day. Think about all of the accounts and obligations you have, including a mortgage or rent, loans, credit cards, utilities, checking and savings accounts, investments, retirement funds, and insurance. On a piece of paper, list the following information about each one: the account number, who it is with, company contact information, online username and password, location of statements, and monthly payment and due date (if applicable). You should also include the name and contact information for any financial advisors, such as an accountant or insurance agent. Periodically revisit the list to make sure it is up-to-date.

In order for your financial directory to be helpful, someone has to know it exists. You may have no problem giving it to a trustworthy relative or friend, but it is completely understandable if you are worried about handing over your account information while you are still in good health. After all, what is to prevent your brother Bob from logging into your checking account online and transferring a little bit of money to himself? One option is to leave the list in a safety deposit box or fire-proof safe in your house. (Just make sure that whoever will be handling your affairs will be able to access it). Another option is to give it to a lawyer or other financial professional. (Once again, make sure the designated person knows who to contact).

Besides creating a financial directory, another way to make it easier for your financial affairs to be taken care of is to assign someone durable power of attorney for finances. This specifically gives him or her the legal right to make financial decisions for you if you are unable. You can create a durable power of attorney document with the help of a lawyer or computer software. Make sure to choose someone who is trustworthy - if you have no friends or relatives who are appropriate, you can use a professional, such as a lawyer or accountant.

A little bit of planning can ensure that your finances are taken care of even when you are not able to manage them yourself.

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September 2009 - Key Credit Card Changes

Sweeping changes in the credit card laws designed to protect consumers provide primarily good news for the millions of Americans who routinely say, "charge it." Key among these changes:

• Rate increases (other than those related to a change in a variable index) cannot be applied to existing balances unless a cardholder is delinquent
• Cardholders must be given 45 days notice of a rate increase
• Those under 21 will have to have either a co-signer or proof of income to qualify for a credit card

Good news for consumers.
The new law protects consumers from what sometimes seemed to be arbitrary rate increases on current balances. Under the new law, credit card issuers will only be able to increase rates on current balances in a few situations. Examples of these situations include increases on variable rate cards that occur when the rate to which the card is indexed increases, or when a limited-time promotional rate expires. Whereas in the past, payments beyond the minimum went first to pay off lower rate balances, now these payments will go against higher interest balances, helping to keep those interest charges from piling up. There are a variety of additional features of the new law designed to minimize over-limit fees, reduce finance charges, extend due dates for payments and generally provide more advance and clear notice of increases.

Protection for young adults.
The proliferation of credit card issuers showing up on college campuses in the past has often saddled young adults with more debt than they are prepared to handle. The intent of the rule that requires a co-signer or proof of income is to reduce the likelihood that those under 21 will get themselves into credit trouble.

Shopping for the best deal.
Industry analysts predict the new law will make it more difficult for some to get credit cards. Additionally, because of a variety of new restrictions that will reduce certain fees for consumers, it is anticipated that there will be a return to more annual fees, and a reduction in rewards-type cards. So it pays to do your homework when shopping for a credit card. Rather than being swayed simply by short-term promotional rates or "freebies" offered for the sign-up of a card, pay attention to:

• The card's regular Annual Percentage Rate (APR). This is the interest you are charged on outstanding balances. If you carry balances, this will be the most critical point of comparison. Pay attention to whether or not the rate is variable. Most are variable, which means they are tied to some index rate like the prime rate. When the index rate increases, so does the credit card rate. Non-variable rate cards can provide a much more stable option, particularly in a rising rate environment.
• Miscellaneous fees, like annual fees. It does pay to read the fine print!

Cornerstone offers non-variable credit card options. Contact a loan counselor at 615.385.6866 or at your local branch to discuss whether this is a good option for you. For more educational information on credit and debt, access free articles here from BALANCE, a free financial education and counseling service for Cornerstone members.

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August 2009 - Succeeding in the NEW ECONOMY

Virtually everyone has been touched in some way by the recession. And while there may be as much debate about the end point of the recession as there was about its beginning, few will argue that it will have long-reaching effects.

So how do you make permanent changes that will allow you to meet your financial goals in this "new economy"? The simple answer: educate yourself using free BALANCE financial information provided to Cornerstone members.

1. Get debt under control. Find more than 30 articles on credit and debt on our website through Balance- from what to know before you borrow to how to overcome the stress associated with getting behind in bill payments. Rolling all of your debt into a single loan may make sense for your situation.
2. Review your current housing situation. Whether you need to downsize, help an aging parent make a change, or are ready to consider buying a new home, understanding your options can help. First-time home buyers have special incentive to buy now: rates are exceptionally low, home prices are particularly attractive and, through December 1, 2009, a tax credit of up to $8000 is available to qualified first-time home buyers. Learn more or call a Cornerstone mortgage counselor at 615.385.6898.

Plan for the future. If you haven't started already, put together a plan. If you already have a plan and you haven't reviewed it in the last 12 months, it's time for a review. Be prepared to ask the right questions by reviewing information on a variety of topics on our website. Or simply contact Mick Anderson for a free, no obligation financial consultation at 615.385.6858.

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July 2009 - BALANCING back-to-school expenses

Clothes. Books. Tuition. Back-to-school means adding expense to what may already be a tight budget. How can we help our members maintain balance?

Continuous Learning
We're never too old to learn something new. As caring financial advisors to our members, you can provide them with the right BALANCE of financial education and competitively priced products to help them make "smart" financial decisions appropriate for their specific situations:

• Maybe it's time to consolidate high interest credit cards into a single loan.
• Members with kids heading off to college may need help with student loans, new or used auto loans, maybe even a co-signed credit card.
• Members with teens at home can help them begin learning the ins and outs of wise money management by having them take a quick course on teens and money through the BALANCE website. Remember - anyone completing any of the online courses and taking the quiz by August 31 will automatically be entered into a drawing for $100!

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June 2009 - Wedding Bells Bring About Financial Change

Summer is the most popular time for weddings. Life changes, like getting married, often bring about potential changes in financial condition. Financial stress is not a good way to start married life. Here are a few quick tips to think about and ways Cornerstone can help you get off on the right financial foot as a newlywed:

• Let us make it easy to get accounts updated. You may need to open a joint checking account and set up online banking, or change names on existing accounts, or get direct deposit set up.
• Getting married often involves a move. Whether that involves a new home for both of you, or a move into an existing home for one of you, we can help with a new mortgage or potentially save you money with a refinance.
• Now is a great time to do a credit report review through BALANCE, a free financial education resource for our members. Knowing the status of each of your credit reports will be very beneficial.
• Or, you may want to consider a more in-depth Money Management Counseling session through BALANCE.

Healthy finances can contribute to a healthy marriage!

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May 2009 - Introducing BALANCE Financial Fitness Program

We’re dedicated to helping you realize your financial goals – reducing your debt, saving for higher education, buying your first home, or planning for retirement. Which is why we are excited to announce your newest benefit of membership: BALANCE Financial Fitness Program. It’s one more way to show our members that our primary goal is to be focused on you!

Through BALANCE, you have access to free, unbiased money management information and assistance. All you have to do is make a toll-free phone call.

BALANCE counselors can answer many of your questions immediately – from how long an item stays on your credit report to whether it's better to lease or buy a car. Should I co-sign or what does it mean for your mortgage to be “underwater”? It’s these questions and more that Balance can give you sensible answers and help you improve your financial life. For more complex issues, such as debt elimination or budget development, an appointment will be scheduled – giving you the personal attention you need to meet your objectives.

If bills have gotten out of hand, your counselor may be able to arrange a Debt Management Plan. BALANCE negotiates with creditors to reduce interest and fees so you can pay your debt quickly and efficiently. To use the new program, simply call 888-456-2227. Counselors are available Monday through Thursday, 7am to 10pm, Friday, 7am to 7pm, and Saturday, 10am to 7pm (CST) or visit more information. You can also access Balance through our website to get to even more resources and quizzes to test your financial knowledge.

We recognize that money concerns have a serious effect on our quality of life. Now, through our newest partnership, you have access to the very best professional guidance – so you can achieve financial security faster than you ever thought possible.

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April 2009 - How can I negotiate a great price on a new auto?

It's no secret that the auto dealers have inventories they want to move. It's a buyer's market. But the fundamentals of getting the best deal haven't really changed. Long before considering a visit to a dealership, you need to know what you want to buy. Once you zero in on the model of car, the more flexible you can be on color and options, the more negotiating room you'll have. Know that there is a big savings between "sticker" price (what is actually printed on the sticker you see on the car) and "invoice" price (the price the dealer pays for the car). And in today's market, with rebates and incentives, know that paying below sticker price is a reasonable scenario.

Who gets 0% dealer financing anyway?
While it is true that there may be restrictions on the amount that can be financed, the number of months available to finance, and particularly, the credit scores required to qualify, 0% dealer financing is available for those who meet the guidelines. Many people will not qualify for 0% financing, but the prospect of getting that rate can lure people into the dealership before they've done their homework. So before you head straight to the dealer to see if you qualify, do all of the appropriate homework first to know what you want to buy, what rebates and incentives are available, etc. Finally, have a fallback plan for financing if you don't qualify for the 0%. Getting preapproved for a low interest auto loan before you ever walk on the first dealer's lot can give you more negotiating power and won't leave you vulnerable to a last minute dealer financed rate that could end up well above the enticing 0% advertised offer.

Should I refinance my current auto loan?
If you still owe at least 24 months on your current auto loan, chances are that rates have dropped enough to make a noticeable difference in your monthly loan payment if you refinance. Just do the calculations to see if it might make sense for you. Cornerstone can lower your rate by at least 2%* , so if you are paying considerably higher than that, use our handy calculator to see what the difference is in the monthly payment at your current rate and number of months left to pay, and what it might be at Cornerstone.* Stop by a Cornerstone branch today, call 615-385-6898 or email us. One of our loan experts will be happy to help you get preapproved for a loan or to talk with you about refinancing your current auto loan.

*Down to a floor rate of 4.0%APR. Actual rate may vary based on age of vehicle, credit score and other factors.

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March 2009 - Lighten Your Tax Burden

What types of loans have tax-deductible interest?
Several different types of loans offer potential tax-deductible interest opportunities. One of the most common is interest paid on home loans and home equity loans or lines of credit. Partner potential tax deductibility with exceptionally low interest rates, and you may find that a home equity loan or line of credit is a great way to consolidate higher interest loans or credit cards into a single loan and enjoy significant savings. Interest of up to $2500 on student loans may also be tax deductible, whether or not you itemize on your taxes. Finally, the interest you pay on loans for items used for business purposes may also be deductible. Consult a tax advisor to learn more about tax-deductible interest opportunities based on your specific situation.

What are the tax advantages of annuities and municipal bonds?
An annuity is a financial product issued by an insurance company that offers tax-deferred growth of assets. At retirement, an annuity can help provide an income stream for one or more people, in specified amounts for a specified period of time or for life. There are variable annuities and fixed annuities, each offering their own particular benefits to investors.

Municipal securities are interest-paying instruments issued by state and municipal governments to fund operating expenditures or various tax-exempt entities. Interest rates on these types of investments is generally lower than on other taxable securities but for those in higher tax brackets, may actually provide a higher "after tax yield" than some taxable securities. Additionally, if you purchase municipal securities issued by your home state, you may get both a federal and state tax exemption.

Why should I take advantage of a 401k plan?
If your employer offers a 401k plan, there are numerous reasons you should participate if you can. First, your employer may match a portion of your contribution. Second, you'll lower your taxable income by the amount you contribute, plus the interest earned is tax deferred. Third, it's one of the easiest ways you can have a disciplined savings program that is automatically deducted from your paycheck.

Knowing how to invest for your future in this uncertain economy can be a challenge. To learn more about investment options that fit your situation, or for more information on the tax advantages of a particular investment, please contact Mick Anderson, the MEMBERS Financial Advisor located at Cornerstone Financial Credit Union at 615-385-6858.

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February 2009 - Is it time to refinance your mortgage?

If you are a homeowner, your home is likely one of your biggest investments and your mortgage, one of your largest monthly expenses. If you happen to stay in your home until your mortgage is paid off, the total amount you’ll pay over the life of the loan – including principal and interest - will be considerably more than the original loan amount.

Let’s just say that you borrowed $150,000 on a 30 year mortgage at 6.75%. If you pay off your mortgage over those 30 years, you’ll end up paying approximately $200,000 in interest. The opportunity to lower your interest rate and/or reduce the term of your mortgage can have a significant impact on your total interest expense.

For example, take the same $150,000 for 30 years at 5.5%. Not only would you save just over $120 on your monthly payment, you’d save more than $43,000 in interest over the life of the loan.

Let’s continue with our example and consider a 15 year mortgage for $150,000 at 5.5%. Though your monthly payment would increase, you not only would pay off your mortgage in half the time, but you’ll save almost $86,000 in interest as compared to the 30 year mortgage.

Use our handy loan calculator to calculate your own scenarios.

Because there are costs associated with refinancing you’ll need to factor this in when you evaluate the potential savings of a refinance. If you’ve been in your home for a number of years, you may actually be able to reduce the term on your mortgage with minimal impact to your monthly payment, but with a major impact on total interest paid. Finally, depending on the amount you refinance and the value of your home, you may get the added benefit of eliminating PMI (Private Mortgage Insurance) if you are currently required to have this insurance on your mortgage. You can refer to your escrow statement for your PMI amount.

With mortgage rates at historical lows, it just makes sense to talk to a Cornerstone loan counselor to see if you can benefit from refinancing your current mortgage. Just call 615-385-6898 for email for more information.

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January 2009 - Credit Reports

Do you know if your credit report information is correct and up-to-date? You’ve probably heard that it’s important to review your credit report on an ongoing basis. Did you know that you have the option to receive free credit reports from the three credit reporting agencies each year? Here’s the information you need to start getting your financial life in order.

AnnualCreditReport.com is a centralized service for consumers to request free annual credit reports. It was created by the three nationwide consumer credit reporting companies - Equifax, Experian and TransUnion.

AnnualCreditReport.com provides consumers with the secure means to request and obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies in accordance with the Fair and Accurate Credit Transactions Act (FACT Act).

AnnualCreditReport.com offers consumers a fast and convenient way to request, view and print their credit reports in a secure Internet environment. They also provide options to request reports by telephone and by mail.

AnnualCreditReport.com is the only service authorized by Equifax, Experian and TransUnion for this purpose. The three nationwide consumer credit reporting companies have always encouraged consumers to regularly review their credit reports.

Please note that, as a security precaution,

• Consumers should never provide their personal information to any other company or person for requesting free annual credit reports under the FACT Act.
• AnnualCreditReport.com will not approach consumers via email, telemarketing or direct mail solicitations.

To get copies of your credit reports, visit annualcreditreport.com or call 1-877-322-8228.

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