 |
|
      |
|
 |
 |
|
|
 |
|
> > Four Points News Archived Newsletters:
Record Low Vehicle Rates
Each of these rates can be reduced further with 0.25% discounts for first-time borrowers and for financing at or below loan value. Borrowers who qualify for each of the discounts can bring the rate down to 2.80%. These new lower rates are not just for cars and trucks, but apply to all types of secured personal loans such as boats, campers and all loans secured by personal property.
A Great Refinance Opportunity
Market rates are down by about 1% from a year ago and by nearly 2% for the past two years. Even if you have had a loan for a couple of years, there is interest savings to be gained.
Hope and Caution for Housing Market
Despite the good news of recent months, people close to the industry remain cautious. Elizabeth Duke, a member of the Federal Reserve Board of Governors, recently predicted continuing difficulty for the market. Duke pointed out there are between four and five million homes either in foreclosure or headed for foreclosure. These distressed properties will continue to be a serious drag on housing until the market is able to absorb the high level of foreclosure inventory. While sales have shown some improvement nationwide, prices have not. The national median price of existing homes was down 2.5% in December compared to a year ago. That's less decline than previous years, but it's still in the wrong direction.
Used Car Values on the Rise If you are in the market for a late-model used car or truck you will find that prices are a little higher this year, and they are likely to continue on an upward track. Kelly Blue Book, a leading provider of new and used auto price information, predicts used vehicle prices will increase 5% during the first quarter of this year. They also expect prices to continue to rise at a more moderate rate through the rest of the year. This follows a year of nearly record value increases during the past year. The primary factory driving values is the slowdown in new vehicle sales the past few years. That means fewer vehicles being traded and fewer vehicles coming off lease. The result is a short supply of desirable late-model cars and trucks. You will find the price a little higher on the used cars you look at. On the plus side, your trade should be worth more depending on its age, miles and condition.
Protect Against Costly Repairs
There is a lot of value in getting an extended service plan for a vehicle that is out of factory warranty. It's an investment you hope you won't need. But if you do, even one major repair can return the investment several times over. The credit union offers a wide range of extended service plans at affordable prices. Typically the plans offered by the credit union will run 35% to 50% less than the same coverage purchased from a dealer. Service plans are an important profit center for dealers and they have a substantial mark-up. Information is available here on our website. Go to the tabs services>vehicle services>extended service plans. You can even get your own price quote online. Or, give us a call to talk about your needs, the options available and the prices. Four Points Board Members Elected Directors Steve Hennemann, Carl Carlson and Becky Haas have been re-elected to the Four Points Board of Directors. Results were announced at the annual meeting on January 25. Steve is with Ag Processing Inc. (AGP) and has served on the board for 15 years. Carl and Becky are with Farm Credit Services of America. Carl has been on the board since 2008. Becky has been on the board a year and a half but has been a volunteer official in other capacities since 1994. Other members of the board are: Kelley Johansen with Farm Credit Services of America; Dale Johnson with Central Valley Ag Cooperative; and Don Shippy and Adrain Vinke who are retired from Farm Credit. We are fortunate to have a board of experienced professionals. The make up of the board is one of the things that sets credit unions apart from other financial institutions. Directors are elected from within the membership and serve in a volunteer capacity for the good of the credit union and its members.
Members of the board (front L-R): Becky Haas, Don Shippy, Kelley Johansen; (back L-R): Adrain Vinke, Steve Hennemann, Carl Carlson and Dale Johnson
2011 Annual Report Available on Request
Loan volume did not do as well and declined 9.6% to $53.4 million. The decrease in loans resulted primarily from reduced demand for adjustable rate mortgages in favor of long-term fixed rates. The credit union holds only adjustable rate mortgages in its portfolio. It was a very busy year for long-term fixed-rate loans with these rates falling to their lowest level in at least 70 years. The credit union originated more than $8 million in fixed-rate mortgages. These loans are sold through a partnership program with the Federal Home Loan Bank of Topeka. The credit union retains the servicing on all mortgage loans sold. With increased savings and decreased loan volume, investments soared to their highest level ever, more than $61 million. The credit union makes conservative investments and invests only in shorter-range jumbo CDs with federally insured institutions. Four Points' net income for the year was $696,760, which was 0.59% of average assets. For a copy of the 2011 Annual Report, call (800) 323-2786 or e-mail us at contact@fourpointsfcu.org.
|
||||||||||||||||||||||||||||||||||||||
 |
|||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||
In case you missed last month's newsletter, Four Points' interest rates on secured personal loans were substantially reduced on the first of January. The benchmark rate on a 60-month fixed-rate new or late model car loan is now just 3.30%. The 48-month rate is 3.20%, the 36-month 3.10% and variable 3.00%.
These are excellent rates for financing vehicle purchases. If you are not in the market for a different car now but have a current auto loan with another lender, it is also an excellent opportunity for refinancing.
The ailing housing market ended on an uptick in 2011, providing some hope for recovery. Sales of existing homes rose 5% in December over November, the third straight month of increase, and were 3.6% above a year ago.
On the subject of used vehicles, it's important to look ahead at the potential for major repairs when the manufacturer warranty has run out. Today's vehicles generally have much higher ratings of reliability than in the past. Still, things can go wrong and major repairs can be costly. Even more minor repairs can run into big dollars.
Four Points Federal Credit Union had a good year in 2011. Member savings grew at a more moderate pace than the previous few years, ending the year at $104.8 million which was a growth rate of 2.6%. Over the past four years, savings has increased by about 75% as consumers have been cautious on investments and many have preferred the safety of insured deposit accounts.
