Loans
Should I Buy an Electric Car?
Q: With gas prices soaring and expected to continue climbing into the foreseeable future, I’m wondering if this is a good time to consider purchasing an electric car. Should I buy an electric vehicle now?
A: Thousands of drivers are grappling with this question as gas prices peak. While an electric vehicle (EV) might be the right choice for many, there are lots of variables to consider before making this decision. Here’s what to know about electric cars before going this route: What are some pros of owning an electric car? The most obvious and prominent advantage of owning an electric vehicle is saving on fuel costs. Driving a car that runs on electricity instead of gasoline means saving money on a large expense category of your budget, month after month. Of course, the higher the cost of gas, the more you save. Right now, with most drivers experiencing pain at the pump, going electric is more popular than ever. Another budgeting bonus to consider is the fact that electricity costs tend to be far more stable than gasoline prices. Another well-known advantage of driving an electric-powered car is the environmental benefits. Lower fuel emissions means a smaller carbon footprint on the environment, which is always a good thing. Yet another advantage to EVs is their superior efficiency. EVs can convert more than 77% of their electric energy to power their wheels. In contrast, gas-powered cars can only convert 12-30% of the fuel stored in their gas tanks into driving power. What are some disadvantages of owning an electric vehicle? There are several disadvantages to owning an EV to be aware of before making a purchase. First, it’s important to note that the battery of every EV may need replacement sometime down the line. Federal regulations require automakers to cover the battery of their vehicles for a minimum of eight years or 100,000 miles, whichever comes first. Some automakers also cover battery degradation, which is when a full charge powers fewer miles than it should. However, if the battery dies after the warranty expires, the cost of replacing it, which can run from $5,000 and $16,000, will need to be covered by the owner. The good news is that, as EVs become increasingly more popular, they are also becoming less expensive to manufacture and the prices of their parts are decreasing as well. In addition, automakers are working to manufacture EVs with batteries that last longer than most drivers will own the vehicle. Another disadvantage to owning an EV is being limited in the number of miles you can drive before you will need to recharge your vehicle. The number of miles you can drive on a full charge, also known as the vehicle’s range, will vary with each car. Most EVs will average 250 miles of range. While this will cover most people’s daily commute, road-tripping in an EV will take some planning. Luckily, as electric cars become more commonplace, finding a charging station on a major highway is becoming a non-issue. However, if you plan to take many road trips with your EV, you may want to purchase a car that is capable of fast charging so you don’t have to spend hours at a charging station every few hundred miles on your trips. Can I charge my electric vehicle at home? Yes, you can charge your EV at home. Plug it in at night, and it’ll be ready to go in the morning. How’s that for convenience? However, before ordering a Tesla, it’s good to be aware that the standard 110-volt wall outlet (Level 1 charging) is relatively slow, adding approximately four miles of range per hour. If you depleted a full 250 miles of range, it can take several days to fully recharge your vehicle. If you’ll be charging your car outside, be sure to verify your charging cord is designed for outdoor use. Most EV owners hire an electrician to install a 240-volt outlet in their garage. This allows for Level 2 charging, which can add 25 miles of range per charging hour. Be sure to get a reliable quote to know the cost of such work. How much does electricity cost? Electricity, though much cheaper than gas, typically isn’t free. The exact price will vary by state, so check how much electricity will cost in your own home state before purchasing an EV. To save more on charging your EV, consider these points: Charging an EV at home is typically less expensive than charging it at a public charging station – unless, of course, you find one of those rare cost-free public charging stations. In addition, charging your EV overnight, or on the weekend will cost less than charging it at peak times, such as weekday afternoons and evenings. You may want to reach out to your utility company to learn exactly what it’ll cost you to charge your vehicle. Some companies offer special plans for EV owners, so be sure to inquire about that as well. What kind of maintenance will my electric vehicle need? A big bonus of owning an EV is having lower maintenance costs. Electric motors have fewer moving parts than gasoline engines. This makes EVs far easier to maintain than their gas-powered counterparts. In addition, many car parts, which generally need replacing after a while – like spark plugs, filters, and oil – are irrelevant to EVs. This means fewer trips to the mechanic and significantly lower maintenance costs. How much will an electric vehicle cost? All the convenience and long-term savings of an EV comes at a high price, and most of them have a higher starting cost than gas-powered cars. Of course, there’s a large range, starting with the Nissan Leaf at just $27,400 and going all the way up to the Tesla Model 3 at $58,990. Fortunately, there are many government-sponsored incentives for purchasing an electric car. These incentives are offered on the federal, state, and local government levels, so be sure to see what’s available before completing your purchase. It’s important to note, though, that many of these incentives are not open to every buyer and every kind of EV. For example, the most well-known incentive, the Federal Qualified PEV Tax Credit, which offers up to $7,500 off the MSRP of qualified EVs, is only available for the first 100,000 EVs an automaker manufacturers and is no longer available for the purchase of any Teslas. If you’re looking to finance an auto loan for your new electric car, look no further than SRI Federal Credit Union! Our auto loans offer low-interest rates with a discount rate [see for current rates], easy payback terms, and a quick approval process. Apply today!
The Nissan Rogue – A Buyers Guide and Breakdown
The Nissan Rogue at a Glance:
- Vehicle type: AWD, FWD, 5-seater SUV
- Base price: $26,700
- Engine/transmission combo: 1.5 liter, VC-turbo, 3-cylinder direct engine hooked up to an Xtronic CVT
- Power: 201 horsepower @5,600 rpm
- EPA fuel economy: 30/37 mpg
Pros Cons Infotainment Safety features Interior Trim levels: If you’re looking to finance an auto loan for your new car, look no further than SRI Federal Credit Union! Our auto loans offer low-interest rates (click here for current rates), a choice of term lengths, and a quick approval process. Click here to apply or call 650-859-5477 to speak with a loan officer to get started or discuss available options!
12 Steps to Financial Wellness-Step 4: Have the Money Talk with Your Partner
You’ve tracked your spending, created a budget, worked on ridding yourself of debt, and are well on your way to a financially secure life. Now you’re ready for step four, in which you’ll have the money talk with your partner. Talking finances with your partner may not be your idea of a shared romantic moment, but communicating openly about how you manage your money is a crucial part of having an honest and trusting relationship. It’s fairly common knowledge that arguing about money is the leading cause of divorce in the U.S., and no one wants to be the next statistic. Unfortunately, though, people often grow defensive when discussing the ways they choose to spend their money. How, then, can two partners have a calm, productive discussion about money? Here are six tips we’ve compiled to help guide you in this super-important conversation. It’s never a good idea to bring up a potentially explosive topic without warning. Instead, broach the topic to your partner a few days before you want to have the “Big Money Talk” and ask if you can have an open discussion about money sometime soon. This way, you’ll each have time to prepare the details you’d like to talk about, and you’ll both be ready to focus on the conversation without distractions. Instead of starting the conversation by bringing up a time your partner overspent or wondering aloud why your better half doesn’t seem to be saving enough for the future, start with a vision you can both share. For example, you can talk about how wonderful it would be to take a luxury vacation to the Cayman Islands, or how you’d love to start saving for a home. This way, you are communicating a shared dream and putting a positive spin on your money talk, which will set the tone for the rest of the conversation. You may be the more responsible, or the more detail-oriented partner, but it’s still important to listen carefully to what your partner has to say. Your partner will have their own ideas about money management, and you may be surprised at the insights they have to share into your own spending habits or expensive vices. At a certain point in your relationship, you may decide to share expenses, split them evenly and have each partner cover different expenses, and/or to pool your savings. Whether you’ve already reached that level with your partner or you plan to bring up the topic now, be sure to talk openly about the way you feel so you have a better chance of avoiding future resentment. For example, if you earn more than your partner, should you be splitting expenses evenly? Can one partner take additional financial responsibilities, such as paying the bills, in lieu of contributing an equal amount of income to the pot? If one partner goes over budget, will they be responsible for patching up the difference by contributing more money? All of these questions, and more, are important to discuss up front to help prevent future blowups and/or hurt feelings. At this time, consider linking one of your accounts or opening a shared account at SRI Federal Credit Union. We’ve got convenient checking and saving accounts to suit every preference. Just stop by and ask how we can help. Sharing expenses and a budget can be liberating in a partnership, but it can also feel constricting. Sometimes, you just want to splurge without having to explain the purchase to your partner. You may also want to spend money on a surprise gift for your partner without them knowing you’ve just dropped a large sum of money on an expensive purchase. Having a slush fund, or money set aside for your personal “just for fun” spending, can help you maintain a sense of independence and keep some of your purchases private. You can keep this fund in a separate checking account under your name at SRI Federal Credit Union. No, you don’t need to have the Big Money Talk every week, but it is a good idea to touch base about finances once a week, or once every two weeks. You can talk about recent purchases, big expenses that are coming up soon, surprise bills and more. Setting aside time to talk about money will keep the stressful money arguments out of your everyday conversations. You did it! You had the money talk with your partner, and you are closer than ever. Be sure to stick to your commitments and to bring up any money issues that may arise during your regular money talks for continued harmonious collaboration about all financial matters.
We are #1 in “Return of the member” (ROM)!
Credit unions pride themselves on offering superior products, services, and experiences. But quantifying member value is tricky. That’s why more than two decades ago, Callahan & Associates developed the Return of The Member (ROM) calculation. ROM considers three core credit union functions: SRI Federal Credit Union is rated #1 for Return of the Member in our asset group, nationwide. This is out of 704 credit unions. We also are #3 in California (out of 141 credit unions) and #25 in the Nation (out of 5,048 credit unions). Per one of the Senior Advisor’s at Callahan, being 25th nationally is a HUGE accomplishment-our members should be proud (and very happy with the great value they are receiving). A big shout out to the credit union staff for making this happen, our Asset Liability Committee for keeping the dividends high, and the Board of Directors who approve and support all the wonderful products that help keep our members happy!
The Best SUVs 1/3: The Subaru Outback 2022
The Subaru Outback at a Glance:
- Vehicle type: AWD, 5-seater SUV
- Base price: $27,145
- Engine type: Gas
- Power: 260 hp@5600 rpm
- Transmission: Continuously variable-speed (CVT) automatic
- Fuel efficiency: 22 mpg/city; 26 mpg/highway
Pros Cons Infotainment Safety features Interior Exterior If you’re looking to finance an auto loan for your new car, look no further than SRI Federal Credit Union and click here to apply! Our auto loans offer low-interest rates, easy payback terms, and a quick approval process. Call, click, or stop by to get started or discuss available options so we can help you get the right payment for your budget!
Is it a Good Idea to Open a HELOC Now?
If you’re looking for a large sum of money to use for a home improvement project, or the economic devastation of COVID-19 has left you in desperate need of cash, consider tapping into your home’s equity. One great way to do this is by opening a home equity line of credit, or a HELOC. Let’s take a closer look at HELOCs and why they can be an excellent option for cash-strapped homeowners in today’s financial climate. What is a HELOC? A HELOC is a revolving credit line allowing homeowners to borrow money against the equity of their home. The HELOC is like a second mortgage on a home; if the borrower owns the entire home, the HELOC is a primary mortgage. Given that a HELOC is a line of credit and not a fixed loan, borrowers can withdraw money from the HELOC as needed rather than borrowing one lump sum. This allows for more freedom than a loan and is especially beneficial for borrowers who don’t know exactly how much money they’ll ultimately need to fund their venture. Borrowers withdraw funds (aka “draws” or “advances”) from the HELOC during a set amount of time that is known as the “draw period,” which generally lasts 10 years. Some lenders place restrictions on HELOCs and require borrowers to withdraw a minimum amount of money each time they make a draw, regardless of need. Other restrictions include the requirements to keep a fixed amount of money outstanding, or to withdraw a specific sum when the HELOC is first established. [At SRI Federal Credit Union, we allow borrowers to ….] How do I repay my HELOC? Repayment of HELOCs varies, but is usually very flexible. Many lenders collect interest-only payments during the draw period, with principal payments being strictly optional. Others require ongoing monthly payment toward both principal and interest. When the draw period ends, some lenders will allow borrowers to renew the credit line and continue withdrawing money. Other lenders require borrowers to pay back the entire balance due, also known as a “balloon payment.” Still others allow borrowers to pay back the loan in monthly installments over another set amount of time, known as the “repayment period.” Repayment periods are generous, lasting as long as 20 years. How can borrowers spend the money? While home improvement projects are popular uses for HELOCs, borrowers are free to spend the money however they please. Some other uses for HELOCs include debt consolidation, funding a wedding, adoption, dream vacation or the launch of a new business. Is everyone eligible for a HELOC? Like every loan and line of credit, HELOCs have eligibility requirements, which help lenders determine the applicant’s financial wellness and responsibility. Most notably, the borrower must have a minimal amount of equity in the home. Lender requirements vary, but most homeowners will be eligible for a HELOC with a debt-to-income ratio that is 40% or less, a credit score of 620 or higher, and a home assessment that stands at a minimum of 15% more than what is owed. How much can I borrow with a HELOC? HELOC amounts vary along with three criteria: the value of your home, the percentage of that value the lender allows you to borrow against and the outstanding amount on an existing mortgage. To illustrate, if you have a $300,000 home with a mortgage balance of $175,000 and your lender allows you to borrow against 85% of your home’s value, multiply your home’s value by 85%, or 0.85. This will give you $255,000. Subtract the amount you still owe on your mortgage ($175,000), and you’ll have the maximum amount you can borrow using a HELOC, which is $80,000. What are the disadvantages of a HELOC? Also, many lenders require the full payment of the HELOC after the draw period is over. This can prove to be challenging for many borrowers. Finally, if you don’t plan to stay in your home for long, a HELOC may not be the right choice for you. When you sell your home, you’ll need to pay off the full balance of the HELOC. You may also need to pay a cancellation fee to the lender. A HELOC can be a great option now HELOCs have variable interest rates, which means the interest on the loan can fluctuate over the life of the loan, sometimes dramatically. This variable is based on a publicly available index, such as the U.S. Treasury Bill rate, and will rise or fall along with this index, though lenders will also add a margin of a few percentage points of their own. The fallout of COVID-19 may impact the economy for months, or years, to come; however, there is a silver lining among the rising unemployment rates and bankrupt businesses: historically low-interest rates. The average APR for fixed 30-year mortgages has hovered at the low 3% for months now, and experts predict it will continue falling. The low rates make it an excellent time to take out a HELOC with manageable payback terms. The economic uncertainty the pandemic has generated also makes it prime time to have extra cash available for any need that may arise. Are you looking to tap into your home’s equity with a HELOC? Call, click, or stop by SRI Federal Credit Union today to get started. Our favorable rates, generous eligibility requirements, and easy terms make an SRI Federal Credit Union HELOC a great choice. For more detailed information on our HELOC products please click HERE.
A HELOC is secured by your home’s equity, which places your home at risk of foreclosure if the HELOC is not repaid. Before opening a HELOC, it’s a good idea to run the numbers to get an idea of what your monthly payments will look like and whether you can easily afford to meet them.
‘Tis the season to shop until you drop-or until you go broke. But you don’t have to overspend.
There’s no need to rack up a huge credit card bill or go into debt just to cover your holiday expenses. Enjoy a stress-free season by keeping your spending in check with these six tips: 1. Create a detailed list of all your expenses Don’t leap into your holiday shopping armed with nothing but a credit card. Before you hit the mall or start browsing, sit down and draw up a complete list of every holiday expense you can anticipate. Include all gifts, holiday décor, travel expenses, charitable donations and food costs. Try to keep this list as trim as possible by cutting out any non-essentials and using stuff you may already have in storage from previous years. Bonus points for any homemade gifts! 2. Determine how much money you can spend Once you have all of your expenses written out, work on finding a magic number that will cover everything on your list and that you can realistically afford. Ideally, this money should come from funds you’ve set aside just for this purpose. 3. Divide and conquer Next, assign specific amounts of money in your budget for each expense category and for every person on your gift list. For example, you can decide to spend $300 on your preteen daughter’s gifts and to donate $100 to charity this season. Again, make sure your numbers will work from both a financial and practical perspective. 4. Track as you shop You’re ready to hit the mall! As you shop, keep a careful account of exactly how much money you’ve spent for each person and in each expense category. It’s best to use cash or a debit card when shopping and to review your budget often to make sure you’re staying on track. This way, you’ll know how much you’re spending and you won’t be hit by awful “Santa shock” come January when you need to pay those credit card bills. To make this job easier, use an app designed for this purpose. A common favorite is one called Santa’s Bag. The app allows you to set a budget for each person on your list and then makes tracking the amount you spend super simple. It will even warn you when you’re nearing your preset spending limit or when you’ve gone over budget. 5. Shop smartly and spend less Keep your spending to a minimum by following these hacks: 6. Let SRI Federal Credit Union help If you’re having trouble covering your holiday expenses, or you want to get a head start on next year’s costs, let SRI Federal Credit Union help! Here are three ways we can take the financial stress out of the holiday season: Don’t let financial stress ruin your holiday cheer this year. Follow our tips to keep your spending down, and stop by SRI Federal Credit Union to see how we can help!
Why You Need to Be Financially Fit
Individual Americans spend hundreds of dollars a year and at least as many hours on keeping themselves physically fit — but too many people neglect their financial health. Just like physical health, being financially fit is crucial to your wellbeing, your future and your quality of life.
Here’s why being financially fit is so important and how you can overcome common barriers to achieving financial wellness. Financial wellness: a ripple effect Being financially fit is about more than just having enough money in your account to cover your expenses and put away something for tomorrow. Managing money responsibly will affect many aspects of your life: What are the leading causes of money stress? According to a survey by Credit Wise®, 73% of Americans rank money issues as the number one stressor in their lives. Here are the top causes for financial stress: Stressing over money is never fun. Stressing over money, when any of the above applies to you, takes on its own form of angst by adding a level of long-term anxiety. It takes time, sometimes years, to undo the damage of any of these stressors — but it can be done! Barriers to financial wellness and how to overcome them We’re convinced: being financially fit is super-important. But what happens now? Why are 80% of Americans in debt? Why do only 39% of Americans have enough saved up to get them through a $1,000 emergency? Unfortunately, while many people may understand that financial fitness is crucial to their wellbeing, there are several barriers that make it difficult to follow through on their convictions. First, many lack the basic financial knowledge necessary to responsibly manage their money. Second, many people mistakenly believe that budgeting, saving and being more mindful of how they manage their money are too time-consuming and tedious. Finally, some people may have fallen so deeply into debt, they’ve begun believing they will never be capable of ever pulling themselves out. Here are some simple steps you can take today to help you achieve and maintain financial wellness: You give your abs a great workout each day — now it’s time to get those money muscles into shape! Follow the tips outlined above and be sure to talk to our lending officers to see how we can help you save money. You may be overpaying on loans you currently have and would benefit from refinancing them over to us. Look at our balance transfer program, pay off your current credit card debt faster than you thought was possible!
Did You Know that We Offer RV loans?
If you’re thinking of road-tripping your next getaway, think RVs. Recreational vehicles and their close cousin, campervans, are growing increasingly popular as more families hit the road for a true American adventure that’s easier on the wallet and heavy on the fun. When purchasing an RV, you can go all out with a fully loaded luxury vehicle, or go the less costly route by opting for a campervan, also called a Class B motorhome. The best part is that our current New and Used RV Loan rates are 5.99% APR both up to 180-month term (15 years)!
If you’re still not convinced, here are seven reasons to buy an RV or a campervan:
1. Save money
With a means of transportation and a place to stay all rolled into one, an RV helps you save significantly on your vacation costs. Plus, when you travel with an on-the-go kitchen, you can stock up on staples before heading out to cut down on the money you’ll spend feeding your family while on the road. In fact, despite the cost of fuel, a 2018 study conducted by the CBRE Hotels Advisory Group found that RV vacations were anywhere from 27-61% less expensive than conventional getaways.
2. Privacy and comfort
Why fight for legroom on a crowded airplane when you can travel in a vehicle that gives you plenty of space to stretch your legs? Move around as much as you’d like (as long as you’re not in the driver’s seat), enjoy a private bathroom, and catch a few winks in the sleeping area, all while traveling to your destination. No unpacking and repacking the vehicle when you stop at hotels along the way or sleeping with your face pressed to the window while stopped at rest areas. What more could you ask for while traveling?
3. Increased flexibility
When you travel with your own means of transportation and a place to stay while on your vacation, there’s no need to be locked into specific dates for your getaway. Instead of working around the cheapest flights and hotel stays, you can come and go as you please and vacation on the schedule that works best for your family.
4. Explore more
Traveling by RV will give you the opportunity to take in the sights and sounds of each place you’ll pass through. You’ll enjoy every bit of picturesque scenery on your travels and have the leisure of stopping to watch a glorious sunset or a passing herd of deer.
5. Bring your pets along
No need to arrange pet sitters or to keep your furry friend in a carrier under an airline seat as your plane wings its way across the skies. When you travel by RV, you can bring your pets along and keep them nearly as comfortable as they’d be while at home. Plus, you’ll save on the cost of pet care while you’re gone, or footing the cost of an extra airline seat.
6. Tax benefits
In many states, owning an RV can mean enjoying significant tax benefits:
- The homeowner’s deduction – if you claim your RV as your primary residence, you may be able to take the homeowner tax deduction for your vehicle.
- Sales tax deduction – in many states, the sales tax you paid on the RV is tax-deductible for the year the RV was purchased.
- Interest deduction – you may be able to deduct the interest you pay on your RV loan from your taxes.
- Business tax deduction – you may be able to claim this deduction if you work from your RV.
Be sure to check with your accountant or tax advisor to see which of these tax benefits applies to you.
7. RV campgrounds are everywhere
You’ll find public, private, and government-owned campgrounds near major attractions all around the country. Fees can be as low as $30 a night, or as high as $150 for upscale resorts with amenities. Look up RV parks near your vacation destination here.
If you’re ready to take the plunge and purchase an RV or a campervan, look no further than SRI FCU! Our RV loans have affordable interest rates, reasonable payback terms, and easy eligibility requirements for qualifying members. Call, click or stop by SRI FCU today to take the first steps on the road trip of a lifetime!
Your Turn: Apply here!
Deciphering Financial Aid Award Letters
You’ve received your college acceptance letters – congratulations! If you’ve been accepted to multiple schools, one of the biggest determining factors for your final choice may be the out-of-pocket cost for each option. Along with your acceptance letters, you should receive an award letter outlining the financial aid for which you are eligible at each college.
IMPORTANT DEFINITIONS:
Award Letter – An offer sent from a college or university to the student that details how much financial support the student is eligible for. The award letter is sent following the student’s submission of the Free Application for Federal Student Aid (FAFSA) and application to attend a college or university.
Cost of Attendance (COA) – A figure provided by college financial aid offices that estimates the total costs of attending that particular school for a period of one year. Included in the estimate are expenses such as tuition, room and board, books and supplies, personal expenses and transportation. Keep in mind that some of these expenses are not set in stone! For example, your costs may be less if you opt to live in a double dorm room versus a single room; select a smaller meal plan; purchase used books, or do not park a car on campus.
Financial Aid – Your award letter provides a list of the aid for which you qualify at each school. You will let the school know which pieces of your financial aid package you wish to accept. (Hint: take the free money first!)
Types of Financial Aid Offered (not all are available to every student):
• Scholarships and Grants (FREE money for college!)
• Federal Direct Loans
• Federal Direct PLUS Loan
• Federal Work Study Program
Comparing Costs – Unfortunately, there is no standard layout for an award letter, so you will need to carefully look at each offer and be sure you are comparing apples to apples. What type of dorm room or meal plan does each school include in their COA? Do both include the cost of books? Are miscellaneous expenses or other fees broken down and labeled? If you’re not sure about any of the numbers, reach out to the school’s financial aid office for clarification.
Can I appeal the decision for my financial aid package?
Yes! You can always reach out to the financial aid office to discuss your award package, especially if your family’s situation has changed. The following situations can be taken into consideration:
• Recent unemployment of family member(s)
• Medical, dental, or nursing care expenses not covered by health insurance
• Changes in the family’s income and/or assets
• Disability/death or divorce
• Homeless youth
• Parents incarcerated
Need more information about paying for college?
You can also schedule a one-on-one consultation with our College Counselor! Send your questions to scholarhelp@studentchoice.org or visit our College Counselor page to access a submission form and more resources. You can also apply online here.