Financially Fit - the online edition - July, 2010
A message from Jim Kavaloski, president
Rest assured: Your Credit Union deposits are safe and sound!
Over the past year, there have been numerous media reports about the funding difficulties of various financial institutions resulting mainly from the sub-prime mortgage crisis. With all the press about bank failures, our members naturally have had concerns and questions about the safety and security of their deposits.
It should first be pointed out that Pipefitters Steamfitters Credit Union is well capitalized and has not been directly affected by the sub-prime mortgage problems simply because we do not underwrite or fund first mortgage loans (for purchase or construction). The Home Equity and second mortgages we offer are underwritten using very stringent and conservative credit guidelines.
Secondly, credit unions are member-owned, not-for-profit cooperatives. Unlike most banks and mortgage brokers, we are not out pushing risky loans on our members just to make a quick dollar. We care about your financial well being, because your financial soundness is vital to the financial soundness of the credit union as a whole.
Finally, just as the FDIC fund insures deposits at banks, the National Credit Union Share Insurance Fund (NCUSIF) insures your savings up to $250,000 per member account along with up to an additional $250,000 for certain retirement accounts, such as IRAs. This fund is administered by the National Credit Union Administration (NCUA), an agency of the Federal Government, which recently reported that the fun remained strong at mid-year and was projected to remain strong.
In addition, your credit union is required to operate with a safety net of capital referred to as 'undivided earnings' and other reserves. This capital cushion helps us weather temporary setbacks. And, your credit union must maintain an allowance for loan loss account which is money set aside to make up funds lost if and when members fail to repay loans.
So be sure to spread the word--- your funds are safe at your Credit Union!
Spring and summer Home Remodeling Tips
How to Choose the Projects That Pay Off
Building a better bathroom? Creating a cooler kitchen?
If you want to remodel your home, save money and hassle by thinking about your goals first.
There are two types of remodeling projects:
Type 1 – You plan to stay in the house for many years, and are not concerned about the impact of the remodel on your market value.
Type 2 – You might sell in the next few years, and you care about the impact on your home's value.
Best Return on Investment
Minor kitchen remodels were the most likely to nearly pay for themselves, with a 93% return.
That means a $5,000 kitchen remodel on average would increase the value of the home by $4,650, for a 93% ROI.
Next came new siding at 92% ROI and bathroom updates at 90%. Other remodels providing a decent return included new decks and window replacement.
Hot tubs, gazebos and similar projects do not increase the resale value of a home. That doesn't mean you shouldn't add one. Just think about it the same way you might a new TV – get it if you really want it, will enjoy it, and can afford it.
No remodel is likely to increase the home's resale value by more than you spend. If are going to remodel, do it because you want to make your house a better place for your family to live.
Financing
Home equity loans are a popular way for Credit Union members to pay for remodeling. These loans can be used for nearly anything, and the interest is usually tax deductible.
The Lending Staff at your Credit Union have helped many members to assess their options and get a home equity loan quickly and conveniently. Call or visit Wayne Melby to ask questions or get started.
Make the Switch to Credit Union Checking
If you have a bank checking account, take a close look at your monthly statements. You will probably notice higher fees every year, along with rising minimum balance requirements. You do have a choice. You can switch to a checking account from your Credit Union.
We offer you:
Low Fees - For many members, the account is free except for buying checks. There are no monthly fees or minimum balance requirements.
Earn Monthly Dividends - At the end of each month your earnings will be deposited to your account.
Debit Cards - Instant Cash & Check cards enable you to withdraw cash and pay for purchases nearly anywhere.
Internet Access - Access your account 24 hours per day using our online Home Banking.
Phone Access - If you prefer the phone, call Pipeline Audio Transactions anytime.
Online Bill Payment – By signing up for Online Bill Payment, your regular bills are paid automatically from your account on selected days. Monthly fee may apply. Look closely at what you're really paying for bank
checking. Then compare to your Credit Union.
Proudly wear your Credit Union's Tee shirt
Proudly show your Credit Union membership while helping the Children's Miracle Network. At our office you will find .new styles/colors of Long Sleeve mock turtleneck Tee shirts with the embroidered PipefittersCredit Union logo. All proceeds are donated to the Children's Miracle Network. Stop by the credit union office to pick your shirt.
Your Credit Union is located at:
411 Main Street, Suite 102, St. Paul Minnesota 55102
Phone - (651) 227-0771 or Toll-Free 1-888-956-0771
Office Hours:
Mon-Tue, Thu-Fri 9:30 a.m. - 5:30 p.m. and
Wed 1:00 p.m. - 8:30 p.m.
