What is a Home Equity Line of Credit (HELOC)?

According to the Consumer Financial Protection Bureau, a Home Equity Line of Credit is a line of credit, like a credit card, except you are borrowing against the equity of your home. With a HELOC, you can borrow or draw money multiple times from an available maximum amount. Similar to a credit card, when you make payments on your HELOC the amount of available credit is replenished.

At Air Academy Credit Union, a HELOC gives you quick access to the money you need now. Our HELOC features a 10 year advance period and a 10 year repayment period. It requires interest only payments through the advance period. Additionally, there is no annual fee, and we offer quick approvals.

Whether it is a planned purchase, unexpected expense, or way to consolidate debt, a HELOC gives you quick access to the money you need now.

What is a Fixed Rate Second Mortgage?

A fixed rate second mortgage is an additional loan taken against a property on which you already have a mortgage loan. This gives you access to a lump sum loan with a fixed term and rate.

A fixed rate second mortgage may be a good option if you are preparing for a large one time expense, such as a wedding or buying a second home.

When to Choose a HELOC

A HELOC is an option if you have a planned purchase, unexpected expense, or way to consolidate debt. During the 10 year advance period, the minimum monthly payment is the greater of $50.00 or the finance charges that have accrued during the billing cycle.

When to Choose a Fixed Rate Second Mortgage

A fixed rate second mortgage may be a good option if you are preparing for a large one time expense. This option allows you to access the equity in your home without having to refinance your first mortgage. Typically, these have lower interest rates than other types of loans.

Making the Right Choice

The interest paid on a second mortgage could be tax deductible. For details, consult your tax advisor.

 A conversation is a great place to start. Schedule an appointment with a Mortgage Loan Officer and they will find the best loan options for you. You can explore our Home Equity Loans and check our current Mortgage Rates online.

Frequently Asked Questions

• What is the minimum loan amount for a HELOC?
  • At Air Academy Credit Union, the minimum loan amount is $10,000. 
• Are there closing costs associated with a HELOC?
  • Yes, the closing cost range is $400 to $2,000. 
• Do I have to refinance my first mortgage to get a Fixed Rate Second Mortgage?
  • No, you can access the equity in your home without having to refinance your first mortgage

Spring is the perfect time to start your journey toward homeownership in Colorado. While National Homeownership Month is officially in June, Spring presents a unique window of opportunity for first-time buyers. The market is typically less competitive, and with the insights and resources available, you can position yourself for a successful purchase in the spring and summer months. This guide will walk you through the benefits of buying a home in Colorado, the programs available to you, and how Air Academy Credit Union (AACU) can help you achieve your homeownership goals.

Why February is a Great Time to Start Your Homebuying Journey in Colorado

The Colorado housing market in 2026 is showing signs of becoming more balanced and favorable for buyers. According to the Colorado Association of REALTORS®, the market has seen higher inventory levels and longer days on market, giving buyers more choices and negotiating power. This shift away from the frenzied pace of previous years creates a less stressful environment for first-time buyers to carefully consider their options.

Specifically, the metro areas of Denver and Aurora have become more buyer-friendly, with some price reductions and increased seller concessions. While affordability remains a key consideration, the easing of mortgage rates into the low 6% range is providing some relief. For first-time buyers, this means a market that rewards patience and preparation, making February an ideal time to get your finances in order, attend a homebuyer workshop, and get pre-qualified for a spring or summer home purchase.

Statewide and Local First-Time Homebuyer Programs

Colorado offers a variety of programs to assist first-time homebuyers, often in the form of down payment assistance grants or forgivable loans. These programs are designed to make homeownership more attainable for low- to moderate-income families. The Colorado Division of Housing and the Colorado Housing and Finance Authority (CHFA) are key resources for these programs.

It is important to note that many of these programs require completion of a homebuyer education course, and income limits apply. These programs can be a significant benefit, helping to cover the upfront costs of purchasing a home.

How Air Academy Credit Union Can Help

Air Academy Credit Union provides a comprehensive suite of services specifically designed to support first-time homebuyers in Colorado. Our First-Time Homebuyer Program is tailored to make your dream of homeownership a reality, with features that directly address the biggest hurdles for new buyers.

Key benefits of working with AACU include:

• Low Down Payments: With options for 1%, 2%, or 3% down, you can get into your new home with less upfront cash.
• No Mortgage Insurance: Unlike many conventional loans, our program does not require Private Mortgage Insurance (PMI), which can save you a significant amount of money on your monthly payment.
• Educational Workshops: We offer free virtual workshops that not only prepare you for the homebuying process but also offer incredible incentives. Attendees can choose between $1,000 off closing costs or a 25% rate reduction on their mortgage.
• Expert Guidance: Our team of "Mortgage Mentors" is here to provide personalized guidance and help you find the best loan solution for your unique situation.

In addition to our specialized program, we offer a variety of home loan options, including Conventional, VA, Jumbo, Reverse Mortgage, Swing Loan, Construction Loan, and FHA loans, ensuring that you have access to the financing that best fits your needs. You can also explore our Financial Wellness Center for more resources, including a Rent vs. Buy calculator and a Home Affordability Calculator.

Your Path to Homeownership Starts Now

With a more balanced housing market and a wealth of resources available, 2026 is a promising year for first-time homebuyers in Colorado. By starting your journey in February, you can take advantage of the quieter market to get prepared, educated, and pre-qualified for your home purchase.

We encourage you to explore the many state and local assistance programs available and to connect with our team at Air Academy Credit Union. Our dedicated Mortgage Loan Officers are ready to help you navigate the process and find the perfect loan for your new home. Take the first step this February and make your dream of homeownership a reality.

What is a Credit Score?

A credit score numerically represents your credit history, typically 300 to 850. This score is calculated based on various factors, including your payment history, credit utilization, length of credit history, types of credit used, and recent credit inquiries. Lenders use this score to assess the risk of lending money to you. A higher score indicates you are a reliable borrower, while a lower score may raise concerns.

Why Does Your Credit Score Matter?

Your credit score affects many aspects of your financial life. For example, when applying for a loan or credit card, lenders use your score to determine whether to approve your application. A good score can lead to lower interest rates, which means you’ll pay less over time. Conversely, a poor score may result in higher rates or even denial of credit. Additionally, some landlords and employers may check your credit score as part of their decision-making process, making it vital for various life situations.

Tips for Maintaining a Good Credit Score

1. Pay Your Bills on Time: One of the most significant factors influencing your credit score is your payment history. Ensure you pay all your bills on time, including credit cards, utilities, and loans.
2. Keep Your Credit Utilization Low: Credit utilization refers to the amount of credit you use compared to your total available credit. Try to keep this ratio below 30%. Aim for 10% or less to show lenders you can manage credit responsibly.
3. Avoid Opening Too Many New Accounts: While applying for multiple credit cards to increase your available credit can be tempting, each application results in a hard inquiry on your credit report, negatively impacting your score. Be strategic and only open new accounts when necessary.
4. Regularly Check Your Credit Report: Monitoring your credit report for inaccuracies or fraudulent activities is crucial. You can request a free report from each major credit bureau once a year. Dispute any errors you find to maintain an accurate score.
5. Consider Joining a Credit Union: Joining a credit union can offer various benefits, including lower interest rates on loans and credit products and personalized financial guidance. Many credit unions also provide educational resources to help you understand and improve your credit score.

Following these tips can build and maintain a healthy credit score, paving the way for better financial opportunities.

Take Action Today!

If you’re looking to improve your credit score and gain access to competitive financial products, consider becoming a member of Air Academy Credit Union. They offer a range of services designed to help you succeed financially. Visit Air Academy Credit Union today to learn more about their offerings and how they can assist you on your financial journey.

Why an Emergency Fund Matters

An emergency fund is a financial cushion to cover unexpected expenses like medical bills, car repairs, or job loss. Without one, you might rely on credit cards or loans, leading to debt. Your emergency fund should cover three to six months of living expenses.

Steps to Start Your Emergency

Fund

1. Set a Savings Goal – Determine how much you need to cover essential expenses. Start small, aiming for $1,000 as an initial goal, then build up from there.
2. Open a Dedicated Account – Separate your emergency fund from your regular checking account to avoid temptation. Look for a high-yield savings account at a credit union near you, like Air Academy Credit Union.
3. Automate Your Savings – Set up automatic transfers from your checking account to your savings account. Even a small, consistent amount can grow over time.
4. Cut Unnecessary Expenses – Review your budget to identify areas where you can cut back. Redirect those funds into your emergency account.
5. Contribute Windfalls – Use bonuses, tax refunds, or other unexpected income to boost your emergency fund.

Stay Committed

Building an emergency fund takes time and discipline, but the peace of mind it provides is worth the effort. Revisit your fund periodically to ensure it meets your needs.

Get Started with Air Academy Credit Union

Ready to build your emergency fund? Air Academy Credit Union offers flexible savings accounts to help members achieve their financial goals. Find a credit union near you to start saving today. Learn more here.

1. Set Clear Financial Goals: Begin by identifying what you want to achieve. Are you saving for a down payment, paying off debt, or planning a vacation? Clear goals will guide your budgeting process.
2. Track Your Expenses: You must know where your money is going before creating an adequate budget. Track your spending for a month to understand your habits and identify areas where you can cut back.
3. Prioritize Needs Over Wants: Differentiate between essential expenses, like housing and groceries, and discretionary spending, like dining out or entertainment. Prioritizing needs will help you allocate your funds more effectively.
4. Automate Savings: One of the easiest ways to ensure you’re saving is to automate the process. Set up automatic transfers from your checking to your savings account each month.
5. Review and Adjust Regularly: Life changes, and so should your budget. Revisit your budget monthly to make adjustments based on your financial situation.
6. Utilize Financial Tools: Many credit unions in Colorado, like Air Academy Credit Union, offer budgeting tools and resources to help you stay on track. With AACU, you can access financial calculators, budgeting apps, and personalized financial advice to make your budgeting process even more effective.

Following these tips and utilizing the resources available at your local credit union in Colorado can help you achieve greater financial wellness.

Ready to take control of your finances? Air Academy Credit Union offers a variety of tools and services to help you create and stick to a budget. AACU supports your journey to financial wellness, from savings accounts to financial advice.

1. Create a Budget and Stick to It

One of the first steps to long-term financial success is learning how to budget. Tracking your income and expenses allows you to allocate some of your earnings to savings and investments. By making regular contributions to your retirement fund a priority, even if they’re small at first, you’ll build the habit of saving that will benefit you for years to come. Credit unions often offer tools and resources to help young professionals manage their finances efficiently.

2. Build an Emergency Fund

Unexpected expenses are a part of life, but having a robust emergency fund ensures you won’t need to dip into your retirement savings to cover them. Financial experts recommend saving three to six months of living expenses in a high-yield savings account. Many credit unions in Littleton and Colorado offer competitive interest rates and savings plans to help you grow this fund quickly while maintaining easy access to your money.

3. Start Contributing to Retirement Accounts Early

Time is one of the most powerful tools in retirement planning. Contributing to a 401(k) or an IRA as soon as you start your career allows compound interest to work in your favor over the years. Even if you can only save a small percentage of your income, those savings will grow significantly with time. Additionally, many employers offer matching contributions for 401(k) plans, giving you free money to boost your retirement savings. Make sure you’re taking full advantage of these opportunities.

4. Minimize and Manage Debt

Debt can be one of the biggest obstacles to building wealth. Paying off high-interest debt, such as credit cards or personal loans, should be a priority. By reducing debt, you’ll free up more of your income towards saving and investing for the future. Many credit unions in Colorado, including Air Academy Credit Union, provide financial counseling and debt consolidation services to help you manage and reduce your debt efficiently.

5. Seek Financial Guidance Early

Retirement planning can be complex, but you don’t have to navigate it alone. Seeking professional financial advice early in your career can help you create a personalized retirement plan that aligns with your goals and lifestyle. Credit unions in Littleton and Colorado, like Air Academy Credit Union (AACU), have experienced financial advisors who can guide you through your options and help you maximize your savings for the long term.

Air Academy Credit Union offers various financial services to help you plan for the future. AACU is committed to helping Colorado residents secure their financial future, from retirement accounts and savings plans to personalized financial counseling. Start your retirement planning journey today with one of Littleton and Colorado's most trusted credit unions. Visit AACU.com to learn how Air Academy Credit Union can assist you in building a solid foundation for your financial future.

Set Up Automatic Transfers

One of the easiest ways to save consistently is by automating your savings. Schedule recurring transfers from your checking account to a savings account. This ensures you're saving without having to think about it. Many banks, including Air Academy Credit Union (AACU), allow you to set up automatic transfers tailored to your income schedule.

Cut Unnecessary Expenses

Take a close look at your monthly spending to identify areas where you can cut back. Subscription services, dining out, or unused memberships can quietly drain your budget. Redirect the money saved into a credit union savings account to build your balance faster.

Take Advantage of Credit Union Savings Accounts

Credit unions often offer higher interest rates on savings accounts than traditional banks. With Air Academy Credit Union, you can explore options like high-yield savings accounts or certificates of deposit (CDs) to make your money work harder for you. These options help your savings increase while providing a secure place for your funds.

Set Clear Savings Goals

Define what you're saving for—whether it's a vacation, home, or emergency fund. Having a clear goal makes staying motivated and measuring your progress easier. To stay on track, use tools and resources available at AACU like savings calculators or financial workshops.

Utilize Cashback and Rewards Programs

Credit cards with cashback or rewards programs can be valuable for saving money when used wisely. Be sure to pay off your balance each month to avoid interest charges. Check out the credit card options at AACU for programs that fit your spending habits.

Start saving smarter today with these simple strategies and see how small changes can lead to significant financial wins. Air Academy Credit Union is here to help you achieve your goals with personalized solutions and exceptional service. Visit Air Academy Credit Union to explore savings accounts, tools, and resources that can help you achieve your financial goals in 2025.

Below, we’ve outlined how to pay down debt in five simple steps, along with three debt-paying strategies to avoid. 

1. Organize your debt

Before you get started, determine how much debt you must pay off. List every credit card you own that has an outstanding balance and jot down the amount owed to each. Next, list the interest rate of each card. Do this for any other fixed installment loan debt you have as well. These numbers will help you build a debt-payoff plan in the next two steps. 

You can also add up the amounts owed on each account to reach your total outstanding debt amount.

2. Choose your debt-crushing method

There are two main approaches people utilize for getting rid of their debts: 

• The snowball method involves paying off your smallest debt first, and then moving to the next-smallest debt until all debts have been paid off. 
• The avalanche method involves getting rid of the debt that has the highest interest rate first and moving on to the debt with the next-highest rate until all debts are paid off. 

Each method has advantages and drawbacks. The snowball method provides frequent motivation as debts are paid off sooner, but it may involve paying more overall interest on the debt. The avalanche method, on the other hand, generally saves the borrower a significant amount they pay in interest, but it can take a while to generate results.

Choose the method that makes the most sense for your personal and financial circumstances.

3. Maximize your payments

Once you’ve chosen your debt-crushing method, it’s time to find ways to maximize your monthly credit card payments. You can do this by trimming your spending in one budget category and channeling that money toward paying down your debt. You can also find ways to pad your pocket with extra cash for your payments, such as freelancing for hire or selling your creations on a platform.

Once you’ve determined how much you can afford to pay each month, you can create a debt-payoff plan using the systems you’ve reached in Step 1. 

4. Consider a debt consolidation loan

For some consumers, the most challenging part of paying down debt is managing multiple payments across several credit card accounts or multiple student loans. With several monthly debt payments to make, it can be complicated to remember them all. It can also feel like the monthly payments are only going toward interest.

A debt consolidation loan or student loan refinance, it could change all that. When you consolidate debts to one low-interest loan, it’s a lot easier to manage the monthly payments. Plus, the savings on interest payments can be significant, especially if the new loan has a low interest rate. 

If this approach sounds favorable, consider taking out a personal loan. The loan will provide you with the funds you need to pay off your debt and leave you with a single, low-interest monthly payment. 

5. Negotiate with your creditors

Many credit card companies are willing to lower your interest rate once you prove you are serious about paying down debt. After kicking off your debt payment plan, it’s worthwhile to contact each credit card company to discuss your options. At the very least, see if you can get the company behind the first debt on your list to lower your rate. 

Let’s explore the best ways to build and maintain an excellent credit score. 

Have several active credit cards

Many consumers mistakenly believe the path toward great credit is through swearing off all credit cards. However, building and preserving a healthy credit score requires owning a card or two and keeping them active. If you’re just starting out, consider signing up for a beginner’s card, which generally features easy eligibility requirements and very little available credit. Otherwise, be sure you have a minimum of three open cards and that you use them on a regular basis. 

To keep your cards active without having an open balance, you can pay one fixed monthly bill, such as a subscription or monthly membership fee, with each of your credit cards. Set up an automatic monthly payment for the bill by linking your credit card, and then set up an automatic monthly payment for the credit card, too, by linking your checking account to the card. Choose to have the money transferred before the bill is actually due. This way, your cards will be open and active and you’ll never have a late payment, which would negatively impact your credit score. Several months of using your cards responsibly will generally help move your credit score upward.

Work on paying down debt

If you’ve landed deep in debt and can’t find a way out, now’s the time to work on kicking that debt for good. 

First, choose your debt-crushing method: The snowball method works by putting all available funds toward paying off the smallest amount of debt first, and then the next-smallest, until all debts are paid off. The avalanche method works the same way, but pays off the debt with the highest interest rate first, and then the next-highest, until all debts are paid off. With the snowball method, you’ll see results quicker, but may ultimately pay more in overall interest. Choose the method that works best with your personality, goals and lifestyle. 

Next, list your debts. If you’re going with the snowball method, list in order from lowest amount to largest. If you’ve chosen to use the avalanche method, list your debts in descending order of interest rate. 

You’re now ready to pay down those debts! Review your monthly budget to find a way you can trim your expenses, or look for a side hustle, and use the extra cash to maximize your payments toward the debt you’re working on first. Keep at it until you’re debt-free.

It may take a while to crush a mountain of debt, but showing the credit bureaus that you’re on track to pay off that debt can do wonders for your score. 

Pay your bills on time

Paying credit card bills when, or before, they’re due is a major factor in determining your score. Carrying an outstanding balance, and/or owing lots of interest, shows that you are not timely with your bills and can’t be counted on to repay loans responsibly. As mentioned, you can set up automatic monthly payments for your bills so you’re never late. Just make sure you keep the account you are paying from well funded to cover your payments as they come out.

Bring down your credit utilization ratio

Another crucial factor contributing to your score is your credit utilization ratio. This refers to the amount of available credit you have and use. It’s best to keep your utilization under 30%, or even 10% if you can. To that end, make sure you’re using just a bit of your available credit each month. In addition, consider accepting offers for increased credit – as long as you know you won’t rack up huge bills by having all that additional credit.

Keeping an excellent credit score is a key factor in financial wellness. Use the tips outlined here to build and maintain a great score.

Here’s how to successfully pay yourself first.

1. Review your spending

Take a clear look at your spending. If you already have a budget, this will be as easy as reviewing the column that lists all of your expenses, including your discretionary spending. If you don’t already have a budget, track your spending over several months to identify your primary expenses and to find the average amount of money you spend monthly. 

2. Set short- and long-term saving goals

Before you start setting aside money each month, you’ll want to have a clear picture of your saving goals. 

Short-term savings, or funds you want to be able to access in the near future if necessary, can be allocated to an emergency fund. Experts advise having three to six months’ worth of living expenses set aside in an emergency fund in case of a sudden, large expense and/or loss of employment. Some people also build a rainy-day fund, or a slush fund that can be used to pay for anything at all, such as a spontaneous vacation or a large discretionary purchase like a new phone. 

Long-term savings should include funds you can afford not to touch for several years or more. Your long-term saving goals can include funding your retirement, as well as a downpayment on a home, a new car, a sabbatical from work or any other super-big expense.

Narrow down your short- and long-term goals until you have a realistic picture, then attach a number to each savings category.

3. Set a timeline for each savings goal

Now that you have a number for the amount of funds you want to save, you’ll need to determine a realistic timeline for meeting those goals. You’ll want to give first priority to your emergency fund, but at the same time it’s best not to neglect your future and to start saving for retirement today. This allows time to let compound interest work its magic. To that end, you may want to allocate the bulk of your monthly savings to your emergency fund until you meet your goal. Once your emergency fund is full, you can divide your savings more evenly between your short-term savings and long-term savings. 

While you work through this step, you may want to reach out to an HR rep at your workplace and/or your accountant to discuss your options for a 401k, IRA or another retirement plan. 

4. Calculate how much you’ll need to save each month 

You’re ready to determine how much money you’ll need to put into savings each month to reach your goals by their deadlines. Take your total for each goal, and divide it by the number of months in your timeline. For example, if you’ve decided you want to have an emergency fund of $24,000 set up in four years’ time, you’ll divide $24,000 by 48 months to get $500 a month. This is the amount you’ll need to set aside each month to reach your goal in time. Do this for each of your goals. 

As you work through this step, don’t forget to account for any interest you’ll accrue for your long-term savings. Also, remember to prioritize your short-term savings for emergencies and adjust your savings allocation once your emergency fund is set up. Without the funds to get you through an emergency, your savings can be depleted as soon as any unexpected expense crops up.

5. Automate your savings

Once you’ve got your savings plan ready to go, it’s best to make it automatic. You can set up a monthly transfer from your credit union checking account to your credit union savings account [or share certificate]. This way, your savings will grow even when you forget to feed them. Think of this money like taxes – it’s not actually part of your take-home pay, because it gets skimmed off the top before it even hits your wallet. But unlike taxes, all of this money (and the dividends or interest it earns) will land in your pocket one day, with some extra, too!

6. Monitor and tweak as necessary

Life is dynamic, and your savings plan should be, too. If you find the system you’ve set in place is not working anymore, you can always tweak and come up with one that better meets your lifestyle. If you find that you’re short on the funds you need for paying yourself first, consider trimming your discretionary spending in a budget category or freelancing for extra cash before lowering your monthly savings goal.

Congrats–you’ve mastered the art of paying yourself first!

A: A home equity loan can be an ideal way to source extra funds during a falling-rates environment. If approved, you’ll receive the funds in one lump sum within a few days. There are no restrictions on how to use these funds, but since you’re essentially risking your home with this loan, it’s important to choose wisely.

Here are four forward-thinking uses for a home equity loan:

1. Home improvements

One of the most popular uses for home equity is home renovations and improvements. Using your home’s equity for such projects is a smart choice for many reasons. For one, the money you put into the renovations acts as an investment. If you choose improvements that increase the home’s value, you can make back the money you spend or even see a return when you sell your home. Also, if you use the funds from a home equity loan to increase your home’s value, you may be able to deduct the interest paid on the loan from your taxes (be sure to also consult with your tax adviser).

2. Debt consolidation

Another popular use for a home equity loan is to consolidate high-interest debt. Paying off multiple debts that have high interest rates can be cumbersome and difficult to manage. Worse, the heavy interest rates mean more of the borrower’s money goes toward the lender and less goes toward paying down principal. Using a home equity loan to consolidate debt to a single and no-interest or low-interest loan can slash a pile of debt by several thousands of dollars and help shorten repayment time by several years.

3. College education

When interest rates are falling, funding a college education through a home equity loan instead of a high-interest student loan can be a smart choice. Similarly, homeowners struggling to meet their student debt payments without defaulting on the loan might want to use their home’s equity to pay off the debt quickly and replace it with a more manageable low-interest loan.

4. Emergency fund

If you’ve been struggling to get an emergency fund going, tapping into your home’s equity can be a great way to get what you need. You’ll have a large stash of cash to build your fund, and the manageable payment plan will help ensure you put money into savings each month.

If you’re ready to take out a home equity loan, we can help. Our rates and terms are always competitive. Schedule an appointment with an expert today! 

The house you buy may not be forever

Because of the soundness of real estate as an investment, many first-time home buyers tend to want to get the biggest house they can. They may be trying to start families or getting more space for their existing family to grow. Whatever the motivation, buying a house is one of the few times when people try to plan their lives 30 or more years down the road.

That’s a really big gamble. Any number of unanticipated changes might happen in 30 years: Your job or your partner’s job may force you to move, your parents may have medical problems that need greater care, or you may decide to change careers or start your own business. This unavoidable uncertainty means it’s not in your best interest to plan for a future that’s so far away.

Look for a house that suits your immediate needs and understand that every place is adaptable to a degree. A den or an office can become a nursery, a shed can become a workshop, and a basement storage area can become another bedroom. Don’t think you need to plan your life out forever if you choose to buy a home. Make some reasonable, educated guesses about what your life will be like for the next 10 years or so, and buy the house you need for that time.

Don’t become “house poor”

Many first-time home buyers also fall into the trap of figuring out the most that they could afford to spend on a new home, then spending exactly that amount. The reasoning behind this decision is simple: money spent to repay a mortgage isn’t really “spent.” Homes can be refinanced or remortgaged if money gets tight, or repaid when the house is sold. That’s sound reasoning, but only to a point. People who end up spending most of their monthly income on a house payment leave little for other debt repayment, retirement savings or building an emergency fund. They find themselves unprepared for an unexpected medical bill or car repair. They also find it difficult to take vacations or make home improvements. That’s an unenviable position.

Avoid this trap with a little financial consultation. Understand that your upper limit for housing expenses should only be a worst-case scenario. Buy the house you need, not the most expensive house you can afford. You’ll be happier in your home and in your budget.

Understand the process

There are a lot of factors that go into obtaining a mortgage. First, you and the seller have to agree on a final price, which includes the money you pay for the house and a host of fees, like the inspection, appraisal and title transfer. The realtor in charge of selling the home can walk you and the seller through the process.

Next, you’ll need to arrange financing. You’ll want to shop around for the best prices, but new regulations can make that costly and time-consuming. Each financier has to appraise the value of the home, and then compare their estimate to the price you agreed on with the seller. The greater the difference between these two values, the more expensive your home loan will be, but that’s not the only factor. The financing institution also has to check your credit, verify your income and assets, and confirm your employment to follow new regulations passed after the last financial crisis that was largely fueled by bad mortgages.

These regulations can make it more difficult just to get the home loan, much less one at a good rate. This is particularly true if your employment history is short or if you’re just getting started with a new business.

You can help this process by buying a house you can afford, building your credit score by reducing the amount of credit you’re using, staying with the same employer and saving for a significant down payment. You should aim to have at least 20% of the total amount of the sale for a down payment, as this is the threshold to avoid having to pay for private mortgage insurance (PMI). A larger down payment also reduces the risk of the loan to the lender and can help get you a less expensive mortgage. This, in turn, makes for a less expensive housing payment. You can also ask for help from Mom and Dad; a cosigner on a mortgage may improve your credit score and lower your interest rates.

Don’t go it alone

A lot of big national lending institutions advertise appealing mortgage specials on billboards, TV and the radio. The rates may seem reasonable and even enticing. In reality, though, those rates go only to a small percentage of borrowers – borrowers who have exceptional credit, significant income and a considerable net worth. As a first-time home-buyer, you probably will not qualify for the rates those large, faceless corporate lenders are using as bait to pique your curiosity.

Given the difficulty of shopping around, make your first stop the institution that has the best chance of giving you the best rates from the start. Your credit union is there to help your community, and that includes helping new home-buyers secure loans for the first time. You’re making the right decision by looking for a home during a buyer’s market. Make another smart call by speaking to a credit union representative about mortgage rates. When you’re ready to get out of the basement, your first stop should be your credit union.

If you plan to buy a new house this year, here’s how to prepare for and ensure a smooth and successful process. 

• Get your finances in order. It’s a good idea to verify you can afford to buy a new home before you start your search. If it’s possible, take a good look at your finances for at least half a year before you plan to start looking for a new home. How much money do you have saved up for a down payment? How much can you afford to spend on a monthly mortgage payment? Ask these questions before getting started to avoid disappointment later on in the game. 
• Boost your credit score. You’ll need a minimum credit score of 670 to qualify for a home loan from most lenders, so make sure your score is up to par before you hit the market. Work on paying down debt, paying your bills on time or early and lowering your credit utilization in the months leading up to your search. You’ll also want to avoid opening new cards at this time. 
• Understand your mortgage options. Depending on your personal circumstances, you may benefit from a mortgage backed by the Federal Housing Administration (FHA), which only requires a 3.5% down payment, or a VA mortgage, which requires no down payment. Similarly, a 30-year fixed-rate mortgage may be in your best interest, or consider going with a 15-year adjustable-rate mortgage (ARM). Make sure you know your options well so you can make an informed choice.

• Shop around for a mortgage lender. Do your research before choosing a lender. Look for a lender that offers the kind of mortgage you need, and ask for referrals from recent clients. You’ll also want to compare the loan estimates you get from different lenders, looking at the rates, fees, estimated closing costs and anticipated monthly mortgage payment. 
• Get your pre-approval before you start your search. This way, you’ll know exactly how much house you can afford, and sellers will regard you as a serious buyer.
• Move quickly when you’ve found a possible yes. The market may be cooling down, but it’s still competitive. If you want to buy a home this year and have your finances worked out before you start shopping, it’s a good idea to make an immediate offer on the home you like.

For anyone confused about retirement, there are lots of sources that explain who, what, how, when and why, but very few places to turn for one of the most important questions – should. This guide is meant as a quick reference to that really tricky word, with some of the most common “should” questions answered. Like any other guide, though, it can’t be as specific as you’d like, so if you have more questions contact our Financial Advisor for a no-obligation meeting to discuss all your options. Ask us your shoulds or see what shoulds other people are asking. If you’ve got a question, it’s a safe bet you’re not alone.

Q: How much money should I have when I retire?

A: This is the most common “should” question in America right now, probably because of its importance. The answer that most experts give, “as much as you’ll need” isn’t particularly helpful. A better, although still maddeningly incomplete answer involves some simple math you can do on the back of a napkin: Take your annual income the year before you plan to retire and subtract your annual retirement income (Social Security, pension, trust, etc.) from it. Whatever that difference is, multiply it by the number of years you expect to live after retirement, probably 15-20. That’s how much you need, give or take a bit.

For example, if your Social Security and pension pays you around $50,000 per year, and you’re making around $150,000 before you retire, the difference is $100,000. Multiply that by 20, and you’ll probably need around $2 million. If that sounds like a whole lot of money, that’s because it is a whole lot of money.

Q: How much should I be saving now?

A: Another question that all-too-often results in a frustrating answer. You should save as much as you can, but not more than you can. A better answer is that retirement should be your savings priority, ahead of college funds or other long-term savings, simply because you can’t get a loan to retire, but you can for virtually everything else. If you feel like your monthly contributions are just drops in the bucket, stop focusing on the bucket. Instead, take a look at your monthly picture. Make a pie chart with five big slices: Bills, debt, spending, short-term savings and long-term savings. This isn’t yet the time to go through and figure out how to trim your bills or refocus your spending, just look at those five. How much of your long-term savings is being used for retirement? Could that number be higher? If so, put more into retirement. If you want to find ways to reduce your costs so you can save more money for retirement, look at those categories again and start making cuts from right to left. First, cut some spending from other long-term savings. Then short-term savings, spending, debt and finally bills.

Q: When should I start saving?

A: If you read the last two questions and have sharp pattern recognition skills, you might expect a frustrating answer, but this one is actually easy. If you haven’t started, start today. Like, right now.  It only takes a few minutes, and you’ll feel so much better. Remember the motivational cliché: The best day to plant a tree was 20 years ago; the second-best day is today.

Q: What kind of retirement account should I get (or get next)?

A: There are three major considerations when selecting a retirement account. First, how many years do you have until you retire? The answer to that question should help determine your risk. The second question is how much money do you make? The answer to that question determines whether you’d like to be taxed on the income now or in retirement. Unfortunately, you’ll have to pay taxes on it at least once. Finally, have you maximized the benefits of another account? If you’re past the point of getting your employer to match your 401(k), look at all of your options. If not, put in as much as you can that your employer will match. You’re not going to find a lot of retirement plans that pay more than the 100% rate of return your employer is offering by matching funds, and if you do find one that can consistently outpace your employer’s contributions, it’s probably illegal.

There are a lot of retirement guides out there, but most of them aren’t very good at those “shoulds” that matter so much in our daily lives. Hopefully, this guide has given you enough information to know what questions to ask. We’d love the opportunity to talk about these shoulds or any others you might have. Make sure to reach out to our Financial Advisor for guidance and asnwer any questions you may have!

There is a way you can save more for retirement, while also saving on your tax bill and earning interest on your investment. It’s called an Individual Retirement Account (IRA). It’s a managed investment account, like a mutual fund, that will grow your wealth so you can enjoy your retirement.

If you work for a large company, you may have something like an IRA: a SIMPLE IRA (Savings Incentive Match Plan for Employees) or a 401(k). Even if you’re maximizing your contributions to these programs, you can still use an IRA from your credit union. The extra money you save in an IRA can pay for the things you’ve always wanted to do. You can spend your retirement traveling the world or going back to school. All you have to do is start planning now.

Successful investing in an IRA is more about starting early. If, at age 18 you deposit $5,000 into an IRA and it earns 8% per year, you will retire with $164,000, assuming you make no other savings. Doing the same thing at age 39 will build a nest egg of a mere $40,000. The key to successful retirement savings, then, is good and early planning.

The time to start investing in a brighter retirement future is now. Let’s take a look at some benefits of investing in an IRA:

IRAs come in two forms: Traditional and Roth. A Traditional IRA is tax-deferred. You don’t pay taxes on the money you put into a Traditional IRA. Instead, you pay taxes on your withdrawals. If you have less income after you retire, a Traditional IRA can save you money on your tax bill.

You fund a Roth IRA with post-tax assets. You invest in a Roth IRA with your post-tax salary. Then, you don’t have to pay taxes on the withdrawal. Roth IRAs make the most sense for people who expect to draw a significant post-retirement income. If you expect to have a significant pension or plan to start a profitable small business when you retire, a Roth IRA might be best for you.

The best part about retirement savings with an IRA is that it requires little direct management. You can set up direct deposit from your paycheck to your IRA, allowing you to grow your savings over time. You’ll receive a monthly statement, just like you do from your checking account. It will show you how much your investments have grown.

IRAs are also professionally managed. A full-time financial analyst directs the growth of the fund. Your retirement savings are in the hands of a professional who knows the ins and outs of the market and can make your money work for you. Rates of return on IRA’s tend to be higher than CDs or savings accounts. This higher return can make sure you have enough money saved to enjoy your retirement.

IRAs offer some flexibility. Withdrawals before retirement incur a tax penalty and other fees, but the money in an IRA is accessible in the case of an emergency. You can also change the size of your contribution month-to-month. This flexibility means you can take advantage of sudden windfalls or expenses.

IRAs are large, managed funds. They can take advantage of economies of scale that are unavailable to individual investors. Managers working with more capital can make safer investments while maintaining good returns. Trying to manage your own retirement investments limits you to working with just the money you have. Investing in an IRA at your credit union allows you to use the added savings power of your entire community.

Relying on Social Security or other guaranteed income for your retirement is not a good idea. The demands that are placed on these programs keep going up and contributions to them keep going down. It doesn’t take a professional financial analyst to see that these trends can’t go on forever. Take charge of your financial future, and do it now. Stop by any branch location and speak to a representative about opening a Roth or Traditional IRA today!

Before you start exploring your options, though, you’ll need to set a goal, or a target number. This number will represent how much you need to have saved for living comfortably and independently throughout your retirement. A good way to set a target number is to take your current living expenses and multiply that by 400. This will give you the amount you’d need to have to sustain yourself, based on a 4% investment return.

There are many investment options to consider for retirement. The most common are 401(k)s, IRAs and Roth IRAs, each of which have their own strengths and weaknesses.

Here’s what you’ll want to look for:

Matching funds

This refers to matching monies offered by employers. Most will offer to match your contributions up to a certain limit. For example, your employer may offer a 100% match on the first 3% of your salary. If you earn $60,000, that means for the first $1,800 you have withheld from your paycheck and put into your retirement account, your employer will gift you an additional $1,800 in completely tax-free money. Even if all you do is park that money in something stable like a trust fund, it’s the highest, safest, most immediate return you can earn anywhere in the stock market. Don’t leave free matching money on the table!

Tax-deferred growth

If a retirement vehicle is tax-deferred, this means all the assets parked in that particular fund will not be taxed until they are withdrawn. This allows the money to grow, untouched, for years.

Tax-deductible

If a retirement fund is tax-deductible, every dollar you put into that fund is subtracted from your taxable income, automatically lowering your taxes. For those in their peak earning years, this can provide considerable tax savings.

Once you have chosen your retirement fund, you’ll need to choose somewhere to invest the money. Low-risk investment vehicles, such as federal bonds or trust funds, are usually the best choice.

If you are saving for retirement through the use of a 401(k), be sure to check if your employer offers a target date fund.

The term “target date” refers to your planned retirement date. You’ll know your employer offers a target date fund if there’s a calendar year in the name of the fund, such as A.J. Holdings Retirement 2050 Fund. Simply make an estimated guess of the year you’d like to retire, and then pick the fund with the date closest to your projected retirement. If you're still not sure, schedule an appointment with our Financial Advisor for more help discussing the best options for you. 

A target date fund is a smart choice because it spreads the money in your 401(k) across many asset classes such as large company stocks, small-company stocks, bonds and emerging-markets stocks. Then, as you near the target date, the fund becomes more conservative, owning less stocks and more bonds, automatically reducing your risks as you near the date of your retirement.

To get the ball rolling on whichever retirement plan best suits your needs, you’ll need to speak to an HR representative at your workplace or meeting with our Financial Advisor for a no-obiligation meeting to dicuss all your options. With a bit of work and a lot of planning, you’ll have your future secured in the best way possible.

Lately, fraudsters have been using AI to cook up more convincing ways to separate you from your money. Some of them are almost impressive—until they hit your bank account. Here’s what to watch for, and how to stay one step ahead.

Too-Good-to-Be-True Investments

Scammers are using AI to whip up fake ads, social posts, and even deepfake videos of celebrities or financial "experts". They promise wild returns and direct you to scammy websites that look pretty legit.

Don’t fall for it: If someone’s pushing an investment with huge returns and "no risk," walk away. Then double-check the company through official channels—and only call numbers you find yourself.

"Mom, I'm in trouble" Scams

With just a few seconds of your voice (hello, TikTok), scammers can clone it. Then they call your family pretending to be you—or your kid, grandkid, whoever—begging for urgent cash via wire transfer, gift cards, or crypto.

How to fight it: Hang up. Call your person directly. And maybe set a family "safe word"—something only you would know.

Fake CEO. Real Money Loss.

AI is helping scammers fake emails and voices—so when you get a call from the "CEO" asking you to wire money fast? Yeah, that might not be your CEO.

What to do: Slow down. Verify weird requests through a different channel. (Slack, text, actual conversation.)

AI vs. Identity Checks

Some apps or banks ask for a selfie or video to prove who you are. Scammers are now using AI to fake those, too—tricking systems with deepfake faces or fake IDs.

Stay safer: Turn on account alerts. Use multi-factor authentication. Check your accounts regularly.

Lookalike Websites

Scammers are cloning real sites—banks, government agencies, even the FBI. They might even use AI chatbots to guide you through entering your info, nice and smooth.

Pro tip: Never trust links from ads, texts, or sketchy emails. Type in the address yourself—especially for things like fraud reporting.

5 Fast Rules for Staying Safe

• If the message feels urgent and secretive? Red flag.
• Verify everything through a known, trusted method.
• Never pay with gift cards, wire transfers, or crypto for emergencies.
• Talk to your family—especially older or younger members.
• When in doubt? Pause. Breathe. Double-check.

Bottom line: AI isn’t evil. But scammers using it kind of are. Stay sharp, and trust your gut. It’s smarter than a deepfake.

How Cryptocurrency Scams Operate

Scammers employ various tactics to con people out of their cryptocurrency:

• Blackmail: Scammers send emails falsely claiming to possess compromising photos, videos, or information about the target, threatening to expose it unless paid in cryptocurrency.
• Social Media Scams: Targets receive messages on social media appearing to be from friends, asking for cryptocurrency to help them out of an urgent situation.
• Fake Mining Opportunities: Bogus websites lure targets into fake opportunities for mining or investing in cryptocurrency.
• Giveaway Scams: These scams claim to be sponsored by celebrities or well-known cryptocurrency investors, promising huge returns for small investments or for sharing personal information.
• Romance Scams: Scammers convince victims they've met a legitimate love interest who then talks about fantastic cryptocurrency investment opportunities. The victim invests and ultimately loses their money.

In each of these scenarios, once the cryptocurrency is sent, it is nearly impossible to recover.

How to Spot a Cryptocurrency Scam

Be wary of the following red flags to avoid falling victim to cryptocurrency scams:

• Promises of Big Payouts: If someone guarantees high returns on a small investment in cryptocurrency, be skeptical.
• Celebrity Endorsements: Claims that a celebrity or famed cryptocurrency investor is sponsoring a giveaway should raise suspicion.
• Urgent Requests from Friends: If a friend contacts you on social media claiming they need quick help via cryptocurrency, verify their identity independently.
• Offers of Free Money: Promises of free cryptocurrency in exchange for personal information are almost always scams.
• Insistence on Cryptocurrency Payments: Be cautious if a caller, new acquaintance, or organization insists on payment by cryptocurrency.

Never share personal information or money with unverified contacts. If you want to invest in cryptocurrency, research secure platforms like Robinhood and Coinbase yourself.

What to Do If Targeted

If you believe you’ve been targeted by a cryptocurrency scam, report it to the Federal Trade Commission (FTC). If the scam occurred on social media, notify the platform to allow them to take appropriate action.

Proceed with caution to safeguard your money and personal information.

How Check-Washing Scams Work

Check-washing scams involve criminals stealing checks from the mail, altering the payee name and/or the amount, and then depositing them into their accounts. These scammers typically:

1. Steal Checks: They swipe outgoing mail from personal mailboxes or use makeshift fishing tools to retrieve envelopes from public mailboxes. They specifically target envelopes that seem to contain checks.

2. Alter Checks: Using household chemicals like acetone or bleach, they erase the original ink on the stolen checks. They then rewrite the check with new payee information and amounts.

3. Deposit Checks: Finally, they deposit these altered checks into their accounts.

Some scammers take this further by using the account details on the checks to create counterfeit checks or fake IDs, driver’s licenses, and passports. Victims might only discover these crimes when they receive overdraft notices or find out their ID is invalid.

Check-washing scams are particularly insidious because they can go unnoticed for weeks or even months. Victims may only realize something is wrong when they review their monthly statements and notice discrepancies or when the intended recipient informs them that the check never arrived. This delay in detection is even more likely if the scammers deposit a check made out to "cash" without altering other details.

How to Protect Yourself

Both local and federal law enforcement agencies, including the U.S. Postal Inspection Service and the FBI, work to combat check-washing. They recommend the following precautions to protect your checks and personal information:

• Use Digital Alternatives: Whenever possible, opt for mobile and online banking services or peer-to-peer payment systems instead of checks.
• Choose the Right Pen: When writing checks, use black gel ink. Blue ballpoint pen ink is easily removable with acetone.
• Secure Your Mail: Avoid raising your mailbox flag for outgoing bill payments. Hand this mail directly to your carrier or mail it from the post office.
• Prompt Mail Retrieval: Collect your mail daily and never leave it overnight. If you’re traveling, arrange for the post office to hold your mail or ask a friend to pick it up.
• Use Security-Tinted Envelopes: These make it harder for thieves to identify and steal checks.
• Destroy Sensitive Documents: Shred or burn canceled checks, deposited checks, credit card statements, and bills to prevent them from being used fraudulently.
• Monitor Account Activity: Regularly check your bank account statements to ensure all checks have cleared for the correct amount and to the right payee. Most banks offer mobile apps and websites for easy monitoring.
• Store Checks Securely: Keep your checks in a safe place at home.
• Specify Payees: Write checks out to specific individuals or businesses and avoid making them payable to “cash.”

Check-washing can cause significant financial harm before it’s even detected. By following these tips, you can better protect your checks and your financial well-being. Stay vigilant and proactive to keep your personal information secure.

This is where multifactor authentication (MFA) steps in, adding an extra layer of security to protect your accounts and sensitive information. Let’s dive into what MFA is, how it works, and why it’s essential for safeguarding your data.

Understanding Multifactor Authentication

Multifactor authentication requires users to provide two or more verification factors to access an account. These factors typically include:

• Something you know: This could be a password or PIN.
• Something you have: Such as a smartphone, key fob, or smart card.
• Something you are: Examples include fingerprint scans, iris scans, or facial recognition.

Accounts secured with MFA won’t allow access unless all required factors are verified, adding a robust defense against unauthorized access.

The Importance of MFA for Data Protection

While passwords can deter some cyber threats, they are often insufficient on their own. A study by Digital Shadows revealed that around 15 billion passwords from 100,000 data breaches are available on the dark web. Cybercriminals can buy these passwords to access victims’ financial accounts, credit card details, Social Security information, and more.

Beyond exposing sensitive data, a single compromised password can give a hacker a window into a victim's personal life. For instance, hacking a Google account can expose email history, calendar events, YouTube activity, and other integrated apps like Asana and Mint.

Passwords can also be easily cracked by inexperienced hackers, especially when users opt for weak, easily guessable passwords or reuse the same password across multiple sites. This makes the use of MFA crucial, particularly for accounts with sensitive information. If a hacker obtains your password, MFA provides a second barrier they must overcome, which is typically much harder to bypass.

Where You’ll Encounter MFA

Generally, the more sensitive the information an account holds, the stronger the security measures employed. You’re most likely to encounter MFA in:

• Banking and financial apps: Protecting your money and financial data.
• Workplace accounts: Depending on your industry, MFA might be mandatory for accessing company systems.
• Investment platforms: Ensuring the security of your investments.
• Retail accounts: Some retailers offer MFA to enhance customer account security.

While using MFA might slightly extend your login process, the added security is well worth the minor inconvenience, considering the time, stress, and potential financial loss associated with recovering from a data breach.

Stay safe online by embracing multifactor authentication wherever possible. The additional security it provides is an investment in your digital safety and peace of mind.

Step 1: Read all notices from the compromised company

The business that’s been breached will generally reach out to all potential victims to notify them of the exposure. it may also advise them about next steps. If you believe your information may have been compromised in a breach, read every message you receive from the exposed company. 

Step 2: Alert your financial institution 

Next, let know your account may have been compromised. This way, we’ll know to keep an eye out for signs of fraud. We’ll be watchful for any large transaction or withdrawal and be in touch if we notice any suspicious activity. 

Step 3: Change your passwords

A data breach generally means passwords of all kinds may have been compromised. It’s best to change as many as possible after a breach to keep information and money safe. Start by changing passwords you are sure were a part of the breach.

Step 4: Consider a credit freeze

A credit freeze will alert lenders and credit companies to the fact that you may have been a victim of fraud. This added layer of protection will make it difficult, or impossible, for hackers to open a new credit line or loan in your name. 

You can freeze your credit at no cost with all three of the major credit bureaus, Equifax, Transunion and Experian. You’ll need to provide some basic information and you’ll receive a PIN for the freeze. Use this number to lift the freeze when you believe it is safe to do so.

Step 5: File an identity theft report

If you believe your identity has been stolen, file an identity theft report with the Federal Trade Commission (FTC) as soon as possible. 

Take these precautions to protect your information from future data breaches:

• Monitor your credit for suspicious activity on a regular basis. 
• Use strong, unique passwords for each account and opt for two-factor authentication when possible.
• Never share sensitive information online and always keep your security and spam settings at their strongest levels.