USN-2056-A_Aug07_Eagle.qxd 7/26/07 1:03 PM Page 1 Free Member Seminars Sandwiches and soft drinks will be served. Presented by Ken Fanning, Financial Advisor/Investment Adviser Representative, Financial Network Investment Corporation, Member SIPC 2125 Wyoming Blvd., NE, Albuquerque, NM 87112, 505-263-2291 fanningk@financialnetwork.com As you approach retirement, you face several important financial considerations: Investments offered through Financial Network are not deposits, not insured by NCUA or any other Government or regulating agency. Returns in such investments may fluctuate and may lose value. Retirement Income Planning Tuesday, August 14, 2007, 6:00 pm 2609 Texas NE • Are you prepared to cover up to 60% of your income needs with your existing plan? • Do you know how to generate a reliable income stream to last throughout your retirement — which for many of us could be 30 years or more? • Do you know how to manage your portfolio to withstand the effects of inflation and rising health care costs? The Millionaire Mindset A Publication for the Members of U.S. New Mexico Federal Credit Union AUGUST 2007 Go Back to School with U.S. Tuesday, August 21, 6:00 pm 2609 Texas NE In short, are you sure your money will last throughout your retirement? If you cannot confidently answer “yes,” you may risk outliving your income. Protecting and managing assets can be difficult in today’s investment environment. The Millionaire Mindset is an educational workshop that provides information on the growth of wealth and protection and preservation of its value for generations to come. Topics include: investment appropriateness, income tax efficiency, the most tax advantageous distribution of wealth during life, and the legacy you will leave. Please join us for this free seminar to learn about Retirement Income Planning. Sponsored by Jerome Pfeffer, Investment Solutions Group, Linsco/Private Ledger. Member NASD/SIPC. Back to School Signature Loan • Up to $3,000 Registration is required prior to attending a seminar. To register, visit our website, usnmfcu.org, and click Member Education, or call 342-8910. • Up to 36 Months • Offer good from 7/15/07 through 9/15/07 Call 342-8888, ext. 52 Golden Eagles Host KNME Executive The Golden Eagles Association will hold its regular meeting at 10:00 am on Tuesday, August 28, at 2609 Texas NE. Following a short business meeting with coffee and refreshments, the guest speaker will be Michael Kamins, Executive Producer of KNME, “PBS.” He will speak about the program “Colores” and other programs such as “The Lawrence Welk Show,” English comedies and mysteries. Join the Golden Eagles to hear about your favorite PBS programs. For more information on the Golden Eagles, a social club for members age 50 and better, call 344-0143. website: www.usnmfcu.org e-mail: info@usnmfcu.org VEHICLE LOANS A.P.R. New Vehicles Terms (2006-2007 model years) 5.75% 5 yrs (2000–2005 model years) 5.75% 5 yrs Used Vehicles Extended terms available. Rates may vary based on qualification. Investment Rates SHARE CERTIFICATE AND IRA CERTIFICATE RATES 3 Months 6 Months 12 Months 18 Months 24 Months 36 Months 48 Months 60 Months APY* 3.10 % 3.85 % 5.12 %** 4.35 % 4.50 % 4.40 % 4.50 % 5.20 % Share Certificates require a minimum deposit of $1,000 and are subject to a substantial penalty for early withdrawal. INSURED INVESTMENT PLUS $100 - $2,499 $2,500 - $9,999 $10,000 - $19,999 $20,000 - $49,999 $50,000 - $99,999 $100,000 & Up Introducing U.S. New Mexico’s Student Visa Card 505-342-8888 Toll-Free Number: 1-888-342-USNM A credit card designed for full-time students Branch Phone Numbers: Osuna – 342-8862 Tennessee – 342-8701 Gold – 342-8501 Irving – 342-8601 Santa Ana – 342-8550 • No minimum income or co-signer required • Choose from four card designs • No annual fee • 24/7 customer support and online account service • Online Account Management Department Extensions APY* 1.50 % 1.90 % 2.10 % 2.50 % 2.80 % 3.00 % Fees & other conditions may reduce earnings. *Annual Percentage Yield Rates current as of 8/1/07 *Annual Percentage Yield **Minimum IRA Certificate Term Rates current as of 8/1/07 *Rate may vary based on qualification. Relationship Pricing discount does not apply. For a complete listing of loan and deposit rates, visit our website, or call 342-8888, ext. 23. Operator ..........................................0 CU by Phone......................................1 Automated Services ............................2 Teller Transactions ..............................3 Member Services ................................4 Loan Services ....................................5 To Repeat These Options ......................6 Visa Check Card Lost/Stolen - 1-800-899-4047 Visa Credit Card Lost/Stolen - 1-800-325-3678 For Branch and Drive-up hours, visit our website or call 342-8888, ext. 2. The information in this EAGLE LETTER is as current as possible. However, the Credit Union reserves the right to change or delete any rates or services. 4 • Security Protection with Falcon Fraud Services Call 342-8888, ext. 52 Auto Loan Rates as Low as 5 .75 % ANNUAL PERCENTAGE RATE Call 342-8888, ext. 52 Borrow From the Credit Union Right at the Dealership Now you can have the best of both worlds — borrow from the credit union when you choose your vehicle at the dealer. Our lending program for new cars and trucks — right at the dealership — offers genuine benefits for financing: • Superior service to customers and dealers • Quick turnaround time on applications • A variety of financing options • Great credit union rates Make sure to let the dealership know you are a member of U.S. New Mexico. We will be closed Monday, September 3, in observance of Labor Day. 1 USN-2056-A_Aug07_Eagle.qxd 7/26/07 1:03 PM Page 2 ‘Exotic’ Means ‘Riskier’ When Talking Mortgages The word exotic may seem better suited to describing a faraway locale for a “Survivor” episode than a mortgage. But if lenders were to call these “riskier mortgages” instead, they might not attract as many consumers. In truth, riskier is precisely what exotic mortgages are. Their appeal to borrowers is that they offer lower monthly mortgage payments, even if only for a while. Payments go up later, perhaps doubling or more. Still, with today‘s high home prices in some markets, some borrowers see an exotic mortgage as their only route to home ownership — or as a way to buy more house than they otherwise could afford. Other consumers refinance out of their traditional mortgage, lured by the low monthly payments. They, too, will get hit by spiraling payments. And they can‘t escape from the mortgage without paying thousands of dollars in penalty fees. Whether first-time home buyers or refinancing homeowners, these consumers end up in the same dire situation. They no longer can afford their mortgage payments. And they face losing their homes and ruining their credit standings. Exotic mortgages include two major types: • Interest-only mortgage (IO) — Your monthly mortgage payment includes interest only, no principal, for a set period, usually three to 10 years. But the principal doesn‘t just vanish. Eventually you have to pay it, and your payments jump. An IO typically has an adjustable interest rate, so your payments can jump higher still. • Payment-option adjustable-rate mortgage (ARM) — This is an ARM that allows you to choose from among several payment options month to month. You could, for instance, pay interest only. Or you could pay even less than the interest amount. The interest you don‘t pay gets added to the total amount you owe. You could end up owing more than you borrowed in the first place, a condition known as “negative amortization.” Paymentoption ARMs typically start out with extremely low interest rates, and then rates can rise. The common trait in these two loan types is payment shock. Payments can rise by 30% to 100%, perhaps even more. These loans are difficult to dissect and understand. It‘s “buyer beware,” experts say. Your best safeguard is to work with a lender who will answer all your questions and fully disclose information about mortgage options. Turn to a loan officer at U.S. New Mexico. You can count on us to look out for your best interests. Contact us today at 342-8836 or 342-8934. COLLEGE STUDENTS: That FREE credit card gift may cost you Every college student has stories about the free goodies they took home when they applied for their first credit card. Whether it was a backpack, free pizza coupons, or even free cell phones, every student can relate. Here are a few reasons NOT to give in to the credit card companies: 1. A credit card is NOT free money; you have to pay it all back, PLUS interest. 2. Small Print: the initial 6.5% interest rate is tempting, but don’t forget to read the small print to find out what the rate will increase to after a few months! 3. Making minimum monthly payments does nothing for your account because you are only adding more and more interest to the same balance! 4. It could take you 40 years to pay off if you make only the minimum payment every month. 5. If you already owe money on a school loan, $5000 in credit card debt can make your credit report look rough. It could even hurt your approval for future loans. Treating a credit card as a convenience item that you pay off every month is the best way for you to save money. Talk to your parents about a U.S. New Mexico account and Student credit card with a low limit. It gives you convenience without the sneaky tricks of some credit card providers. And, you can track all of your transactions and pay your bill online. Article by Nicole Ford, Virginia Commonwealth University Student. Buying a Car for the First Time? U.S. New Mexico has negotiated a special offer through the following dealerships: Garcia Automotive Group (Honda, Infiniti, KIA, Mazda, Mitsubishi, Saab & Subaru Dealerships) Quality (Jeep, Chrysler, Pontiac, Buick & GMC Dealerships) Karl Malone Superstore Larry H Miller Hyundai & Used Car Supermarket Houston Wholesale • • • • • • No cosigner required Minimum of $1,500 monthly income 1 year on job Borrow up to $15,000 Interest rates as low as 14.9%* Terms of up to 5 years * Derogatory credit history may result in disqualification. Rate may vary based on qualification. 2 A New Benefit of U.S. New Mexico Membership: BALANCE Financial Fitness Program U.S. New Mexico Federal Credit Union is dedicated to helping you realize your financial goals — reducing your debt, saving for higher education, buying your first home, or planning for retirement. We are excited to announce your newest benefit of membership: BALANCE Financial Fitness Program. Through BALANCE, you have access to free, unbiased money management information and assistance. All you have to do is make a toll-free phone call. BALANCE counselors can answer many of your questions immediately — from how long an item stays on your credit report to whether it's better to lease or buy a car. For more complex issues, such as debt elimination or budget development, an appointment will be scheduled — giving you the personal attention you need to meet your objectives. If bills have gotten out of hand, your counselor may be able to arrange a Debt Management Plan. BALANCE negotiates with creditors to reduce interest and fees so you can pay your debt quickly and efficiently. As a member of U.S. New Mexico, the program‘s monthly administration fee of $20 is waived. To use the new program, simply call 888-456-2227. Counselors are available Monday through Thursday, 5am to 8pm, Friday, 5am to 5pm, and Saturday, 8am to 5pm (PST) or visit www.balancepro.net for more information. We recognize that money concerns have a serious effect on our quality of life. Now, through our newest partnership, you have access to the very best professional guidance — so you can achieve financial security faster than you ever thought possible. brass We have some exciting news for our young adult members, ages 18 to 25. You’re about to receive your first issue of brass magazine starting in early August. To show our appreciation for your membership, we are providing complimentary copies of brass to our young adult members, as a resource on making, managing, and multiplying money. So what is brass? brass is about young adults, money, and how it affects your life. A quarterly magazine published in February, May, August, and November, brass is made up of content produced by young writers, photographers, and graphic designers — just like you. brass doesn’t talk at you, “We see you eye to eye.” brass’ goal is to provide direct, intelligent and entertaining content to young adults about the money side of life. From planning your retirement to throwing cheap parties, brass looks at your young adult life and how you handle money. Like brass, U.S. New Mexico wants to convey to you the importance of understanding how money works. For your dreams to come true, you need to know how money and your life interact. We are committed to helping you meet your financial challenges and reaching your dreams. Thank you for being a member of U.S. New Mexico. We hope you enjoy brass. Visit brass online at usnmfcu.org, then click on the “Connect to brass” icon. Lobo Football Tickets! Lobo Football season tickets are now on sale! With 43 returning lettermen, 20 returning starters and 32 players from the state of New Mexico, 2007 looks to be another exciting year at University Stadium, as the Lobos look for their fifth bowl game in six years. Head coach Rocky Long and his team will host six exciting home games this year against in-state rival New Mexico State, as well as Sacramento State, BYU, Air Force, Colorado State and UNLV. U.S. New Mexico has a limited number of season tickets available to members at a special discounted price of $75. $75 is well below the normal price for these tickets, so they won’t last long. Call 342-8832 to reserve yours. Credit Builder Credit Card No credit history? No problem. The Credit Builder will help establish and build your credit. • Credit limit of $300 - $1,000 • 18% APR – Qualify for a reduced rate after one year of good payment history To apply, call 342-8888, ext. 52. * Existing credit score and/or derogatory credit history may affect qualification. 3