A lot goes into the decision to buy a house, and so does the decision to take out a mortgage to pay for that home. Having a good understanding of what all your mortgage entails will take some of the mystery out of the process.

There are various costs associated with a mortgage, including:

• Interest rate
• Points (Or discount points; With these you pay more upfront, but receive a lower interest rate and end up paying less over time)
• Fees
• Other charges

There is a cost you will pay each year to borrow the money for your home. According to the Consumer Financial Protection Bureau, that is the interest rate, which is expressed as a percentage. The interest rate only reflects the cost of borrowing the money for your home.

An annual percentage rate (APR) reflects your interest rate, but also includes any points, mortgage broker fees and other charges involved in the cost of the loan. Therefore, your APR is usually higher than your interest rate.

The CFPB advises caution when comparing loan options, and to be sure you understand differences between the terms being offered. As just one example, the APR of a closed-end loan includes fees, but the APR of a home equity line of credit does not.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. With approved credit. For specific questions regarding your personal lending needs, please call RCB Bank at 855-BANK-RCB. Some restrictions apply. RCB Bank is an Equal Housing Lender and member FDIC. RCB Bank NMLS #798151.

Source:

https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-mortgage-interest-rate-and-an-apr-en-135/

Having an emergency savings fund is considered an essential part of your overall financial wellbeing. But what exactly constitutes an emergency, and when should you use it?

Emergency savings funds are designed to pay for unexpected expenses, or to cover the bills if you have a loss of income. While you can’t control when something unexpected happens, you can control being prepared for the unexpected.

The most common reasons to dip into your emergency savings funds are salary reduction (to help bridge the gap); medical bills; unexpected repairs, such as vehicle or air conditioning/heating units; or replacing appliances.

And because everyone’s definition of an emergency differs, it might be easier to say what you shouldn’t spend your emergency savings fund on. Remember, these funds are designed for emergencies, so dipping into it to help pay for nonessential items like a vacation or concert tickets or other entertainment expenses should not happen.

A good baseline is this: Do you need the item to survive? If you don’t, you definitely should shy away from using the emergency savings fund for the purchase.

Having a reserve fund for financial emergencies can help you avoid relying on other forms of credit or loans that can turn into debt, the Consumer Financial Protection Bureau states. If you use a credit card or take out a loan to pay for these expenses, your one-time emergency expense may grow significantly larger than your original bill because of interest and fees.

The CFPB also says don’t be afraid to use it if you need it, and if you spend down what’s in your emergency savings fund, just work to build it up again.

Practicing your savings skills over time will make this easier.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank, Member FDIC.

Sources:

https://www.consumerfinance.gov/an-essential-guide-to-building-an-emergency-fund/

https://www.federalreserve.gov/publications/2022-economic-well-being-of-us-households-in-2021-executive-summary.htm

Online quizzes sure seem like innocent fun. But before you take that next personality test, quick survey or “find out what type of BLANK you are” quiz, ask yourself: Do I know who’s gathering this information about me – and what do they plan to do with it?

The more information you share on these quizzes, the more you risk that information being misused, the Federal Trade Commission stated earlier this month.

A lot of the times, these quizzes and/or surveys will ask questions similar to the questions that are asked on online account security. Scammers can post a seemingly innocent quiz, then use your quiz answers to try and reset your online accounts, letting them steal your bank and other account information, the FTC warns.

One major way to protect your personal information — in addition to maintaining strong passwords and using multi-factor authentication — is to steer clear of online quizzes … or just don’t answer them truthfully, the FTC advises.

Another type of online quiz to be on the lookout for are quizzes that offer prizes for completion.

These quizzes may look official, giving gift cards as prizes to some of your favorite online establishments. And once you finish the quiz, you’ll be sent to a page where you are to enter your personal information so that the scammers can send you or award you your prize.

Once they have your personal information, coupled with some of the answers that were provided on the quiz, scammers can wreak havoc before you even know what happened.

If you suspect that an online quiz is a phishing scam, tell a friend. Then, report it to the FTC at ReportFraud.ftc.gov.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank, Member FDIC.

Source:

https://consumer.ftc.gov/consumer-alerts/2023/01/dont-answer-another-online-quiz-question-until-you-read

So you know you want to buy a house, but you’re not sure what your first step should be. Your home most likely will be the biggest purchase you make in your lifetime, and the process of buying and qualifying for a mortgage can be daunting.

But just what exactly is a mortgage? Mortgage loans are used to buy a home or to borrow money against the value of a home you already own.

According to the Consumer Financial Protection Bureau, a mortgage is an agreement between you and a lender that gives the lender the right to take your property if you fail to repay the money you’ve borrowed, plus interest.

Basically, the collateral of the mortgage is the house itself. The lender holds the rights to the house until the mortgage is fully paid off. Mortgages generally have a set payment schedule (typically over 30 or 15 years), so that the mortgage is completely paid off at the end of your term. Generally, the payments will be made monthly and typically consist of both principal and interest charges.

To get a mortgage, you’ll have to work with a mortgage lender. And before you even start looking at houses, you should get a mortgage prequalification.

There are several types of mortgages – whether it’s a rural development loan, a VA Loan or a conventional loan – and you should work with your lender to navigate the process and see which mortgage is right for you.

The CFPB recommends you focus on a mortgage that is affordable for you given your other priorities, not on how much you qualify for.

Becoming a homeowner is not an easy process, so it’s important to do your research before you decide to buy. That’s why finding the right mortgage lender is crucial, because it’s essential to understand what you’re signing on for when you borrow money to buy a house.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. With approved credit. For specific questions regarding your personal lending needs, please call RCB Bank at 855-BANK-RCB. Some restrictions apply. RCB Bank is an Equal Housing Lender and member FDIC. RCB Bank NMLS #798151.

Source:

https://www.consumerfinance.gov/ask-cfpb/what-is-a-mortgage-en-99/

WINFIELD, Kan. – RCB Bank in Arkansas City and Winfield recently made a $500 donation to Angels in the Attic. The donation is just one of many ways RCB Bank and its employees give back to the communities in which they serve.

Along with the cash donation, RCB Bank employees from Winfield and Ark City donated toys and gifts to Angels in the Attic as well.

The branches had a “jeans day” to raise money for the project. RCB Bank employees adopted two families and bought gifts for each of those family members.

“We’ve been doing this for the past several years,” RCB Bank Retail Coordinator Kim Fleetwood said. “We do our best to help take care of our communities.”

PHOTO: From left, an Angels in the Attic volunteer, RCB Bank Credit Analyst Raven Nuss, RCB Bank Loan Admin Assistant Kristen Dobbins, Angels in the Attic Executive Director Janice Marr, RCB Bank SVP Market President John Sturd, RCB Bank Loan Admin Assistant Cindy Harper and RCB Bank VP Loan Officer Ron Smith donate money and presents to Angels in the Attic.

RCB Bank is a $4.1 billion community bank with 65 locations in 36 cities across Oklahoma and Kansas. Founded in 1936, RCB Bank is committed to serving its communities with conservative banking practices and progressive banking products. Learn more at RCBbank.com or give us a call at 855.226.5722. Member FDIC, Equal Housing Lender, NMLS #798151.

If you’re in the market for a home, the first thing you should do before you start shopping is to find a mortgage lender. Your mortgage lender will help guide you through the process and will look out for your best interests.

Your lender will want to evaluate your credit, and you should be evaluating your lender as well. The Consumer Financial Protection Bureau recommends contacting at least three lenders and recommends these tips:

• Share the basic facts about your situation and the kind(s) of loan you are considering.
• Ask the loan officer whether your plan makes sense to them, or whether they might recommend something a little different. If they recommend something different, ask why.
• Ask the loan officer to show you the interest rate, APR, estimated fees, and monthly payments for a couple of different loan options.
• Ask the loan officer to look at your documents and help you understand whether there are any reasons you might not qualify for the loan options you have discussed.

After following those tips, there are even more questions to ask. The more thorough you are during this process, the more prepared you’ll be to make a decision on who you should pick as your lender.

Ask what the closing costs are. There is a large range when it comes to closing costs, but you can expect them to be between 3% and 6% of your loan. So on a $200,000 home, your closing costs as a buyer could amount from $6,000 to $12,000. Closing costs can include an application, appraisal or home inspection fee and a variety of other miscellaneous charges. Make sure you know exactly how much your closing costs will be. However, some closing costs are negotiable, so ask which of those can be negotiated.

Ask if you qualify for any down-payment assistance programs. Having enough money for a down payment often is what keeps potential buyers from being able to make their home purchase. However, there are many down-payment assistance programs that can offer help, depending on your circumstances. One study found that buyers who use down payment assistance programs save an average of $17,766. When you’re talking about that kind of savings, having a mortgage lender who can help you navigate that process is priceless.

Ask if you’ll have to pay mortgage insurance. If you put less than 20 percent down you’ll likely need to get private mortgage insurance, or PMI, and add its cost to your monthly payment. Once the equity in your home reaches 20 percent you can get rid of PMI and reduce your monthly payment. But you should ask your lender what your options are. The answer may be just, “Make a bigger down payment.” Or you may find there are other loan programs that you might qualify for that don’t require mortgage insurance.

Ask who pays taxes and insurance. Most mortgage payments include taxes and insurance. However, some don’t. That’s why you should ask ahead of time. If your mortgage payment doesn’t include taxes and insurance, you’ll have to pay them yourself each year, which can be a big chunk of change when they’re due. But if your mortgage does include taxes and insurance, your lender will collect money as part of your payment each month and put it into an escrow account. When your real estate taxes and homeowners insurance payments are due, the mortgage company will pay the bills from your escrow account.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. With approved credit. For specific questions regarding your personal lending needs, please call RCB Bank at 855-BANK-RCB. Some restrictions apply. RCB Bank is an Equal Housing Lender and member FDIC. RCB Bank NMLS #798151.

Sources:

https://www.consumerfinance.gov/owning-a-home/explore/contact-multiple-lenders/

https://www.realtytrac.com/blog/2016-down-payment-assistance-affordability-analysis/

The Federal Trade Commission received 2.8 million fraud reports in 2021. The FTC also stated that fraud losses increased to more than $5.8 billion, a more-than 70% increase from 2020.

It’s no secret that fraudsters are constantly figuring out ways to try and scam you out of your money. And you can stay one step ahead of them by being informed. Staying informed is the best way to combat fraud.

The Association of Certified Fraud Examiners noted that the economic downturn will fuel new fraud risks, stating that scammers are more likely to commit fraud when economic conditions worsen.

With the rise of two-factor authentication as a way to protect your account, scammers now are pretending to be a company, calling you and asking for the two-factor authentication code after initiating a fake log-in. Once they have the code, they can access your account and change the information before you even know what is happening. Remember, companies will never ask you for your passwords OR your multi-factor authentication code. No matter how official they sound, NEVER give this information to anyone.

Another type of fraud predicted to rise this coming year is business emails being compromised. As more and more people are working remote, this type of fraud is expected to be commonplace this coming year. You may get an email that appears to be from your company’s president, asking about a payment that is overdue. The scammer then will provide you with an account to replace the payment information you already have on file.

Employment scams, while not new, are expected to rise again. Scammers will take advantage of people looking for a job, and those who are job hunting are susceptible to falling for the scam. The scammers typically will offer a remote job opportunity, and then will say the job is yours after you send them your banking login credentials and/or your account number, so they can pay you. But then they’ll have access to your account. And if you ever are asked to send money or refund money as a condition of employment, this is a surefire scam. Ignore it and move on.

Student loan fraud also is expected to rise. NEVER pay to apply for federal student loan relief. If you are ever contacted and asked for a payment, guaranteed approval or promised a quicker forgiveness process, you are being targeted by a scammer.

Staying vigilant and informed is the best way to combat fraud. Fraudsters constantly are adjusting their scamming methods as people become more informed. And remember, if it sounds too good to be true, it usually is.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank, Member FDIC.

Sources:

https://www.ftc.gov/news-events/news/press-releases/2022/02/new-data-shows-ftc-received-28-million-fraud-reports-consumers-2021-0

https://legacy.acfe.com/report-to-the-nations/2022/

https://c80211ea91bab460a01a-e73d423e7486dd5fc383150a57d2a8f5.ssl.cf1.rackcdn.com/20221011-Andi-McNeal-1280×720.mp4

https://consumer.ftc.gov/articles/use-two-factor-authentication-protect-your-accounts

It’s almost the new year, which means it’s time for new year’s resolutions. According to a survey by Statista, financial goals are one of the top 5 areas where Americans wish to focus on improving.

If improving your finances is an area in which you’d like to focus, here are some ways in which that could be obtained.

If you don’t know about the 52-week savings resolution, you can read about it here. However, if that seems too daunting of a task, or is too hard to keep up with, try asking your bank to set up automatic transfers to a savings account. Think of it as setting up an auto-pay bill – only you’re paying yourself!

Start a financial journal. If you keep track of every penny you spend, you may see things on paper that you don’t notice day to day. Keeping a journal will make you more mindful of where your money goes.

Starting a journal will help you if you want to organize your finances. Organizing your finances can reduce stress by showing you where you stand financially and can help you start a path to financial success.

Reduce your debt. Paying down your debt always is a good place to start with a new year’s resolution. Your debt-to-income ratio plays an important part in your finances, so finding a strategy to eliminate your debt can be a great boost to your financial well-being.

Improve your credit score. Improving your credit score can make it easier for you to get approved for loans and lines of credit, and even lower interest rates. A person with a higher credit score can save thousands of dollars over the course of their life than someone with a low score.

Making financial resolutions can help you make 2023 the best ever and even more enjoyable beyond that. Whether you want to reduce debt or save money, you can build financial security by setting these types of resolutions.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank, Member FDIC.

Source:

https://www.statista.com/statistics/378105/new-years-resolution/

WINFIELD, Kan. – RCB Bank employees have a lot to be thankful for and were aiming to spread some holiday cheer. Which is why RCB Bank recently donated $2,000 total to two local food pantries.

Both Winfield Community Food Pantry and Joseph’s Storehouse Food Pantry in Burden received $1,000 donations.

“Generous hearts by many of our employees and customers allowed us to donate a lot of food to the pantries,” RCB Bank SVP Market President Gregg Conklin said. “This is the season of giving, and RCB Bank is proud to always give back to our communities.”

Employees were allowed to wear jeans on Fridays for approximately two months – if they brought two or more cans of food to donate.

RCB Bank is a $4.1 billion community bank with 65 locations in 36 cities across Oklahoma and Kansas. Founded in 1936, RCB Bank is committed to serving its communities with conservative banking practices and progressive banking products. Learn more at RCBbank.com or give us a call at 855.226.5722. Member FDIC, Equal Housing Lender, NMLS #798151.

Whether you own a home and are looking to buy land, or if you want to buy land on which to build your dream home, the process is vastly different – and often more difficult – than buying an existing home.

Do your research when buying land. Every piece of land is zoned for a specific use, be it commercial, agricultural or residential. Find out from the county in which the property is located how it is designated. The zoning information is key to whether or not you can build what you’d like to on the property, and the rules usually vary from city to city and county to county.

If the property is zoned how you wish, next find out if you can build on the land. Just because it’s zoned how you prefer, it’s still a good idea to see if the land is prone to any hazards such as flooding. Also check the topography and the soil. Flat land is easiest on which to build, so if it’s rocky, hilly or has many depressions, it may cost more to build there. With a soil test, you can figure out how much weight the soil can handle, which will tell you if the ground is strong enough on which to build.

Also, how easy will it be to access the land? If your property is landlocked, it’s likely you’ll have to travel over someone else’s property to access it. Is it near roads? If not, you’ll need to factor in the cost of building a road to access your property.

Does the land have access to utilities and internet? It will be costly if water and sewer utilities are unavailable.

Obtaining financing for land oftentimes is more difficult of a process than buying an existing home, especially if you don’t have any immediate plans for the land.

While buying land isn’t as straightforward as buying an existing home, if you find the perfect piece of property and know what type of home you’d like the build, buying the land outright could make all the potential difficulty worth it.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank, Member FDIC.

It’s common knowledge that your home generally is the most important purchase you’ll make in your lifetime. That’s why who you choose as your mortgage loan originator is just as important as which home you choose.

Your MLO will help guide you through the process and will look out for your best interests. They’ll help you choose which loan is right for you and they’ll help you understand all facets of the home-buying process. MLOs estimate your loan amount and interest rate based on a review of your income, assets and credit report. Getting a mortgage prequalification is an important first step and can help you figure out your home buying budget.

Mortgage loan originators must have a comprehensive knowledge of lending products, banking industry rules and regulations, and the required documentation for obtaining a loan.

“Loan officers evaluate, authorize, or recommend approval of loan applications for people and businesses,” according to the U.S. Bureau of Labor Statics.

To become a registered MLO, the following requirements must be met:

• Submit their personal history and experience (MU-4 form).
• Submit fingerprints for a state and federal background check.
• Have a unique identifier number.

In essence, MLOs are your link between you, your mortgage and homeownership. They’ll walk with you through each step of the process, from origination to closing. It’s generally a good idea to contact an MLO before you start looking at homes, because they’ll give you an idea of your budget and how much you can afford to spend.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. With approved credit. For specific questions regarding your personal lending needs, please call RCB Bank at 855-BANK-RCB. Some restrictions apply. RCB Bank is an Equal Housing Lender and member FDIC. RCB Bank NMLS #798151.

Sources:

https://mortgage.nationwidelicensingsystem.org/about/Pages/default.aspx

https://www.bls.gov/ooh/Business-and-Financial/Loan-officers.htm

In today’s technological climate, manually balancing your checkbook with pen (or pencil) and your register likely has gone the way of the dodo bird.

But, knowing exactly what comes out and goes into your checking account not only is one of the best ways to combat fraud, it can give you a true idea of where your money is going and of your spending habits.

Most of your transactions and account information likely is readily available to you anytime in both your banking app and when you access your online banking account. You may even have a budgeting app linked to help you keep track of your expenses. So it may seem pointless or even redundant to keep track and balance your expenditures.

But with so many transactions these days, it’s easy to forget about one that hasn’t cleared your account yet. So if you regularly log all of your transactions, you always will know exactly how much money truly is in your account – to the exact cent.

And best of all, it doesn’t take long to learn, but it will require diligence on your part.

First, you should determine your account’s balance. Try to avoid using your debit card and writing checks for a couple of days to avoid any transaction-clearing lag. After waiting a few days, log into your banking app or online banking account to check your balance. Cross-reference the balance displayed against any automatic withdraws or outstanding checks. For instance, if your balance is $850.67, but you wrote a check to pay a water bill for $49.47, ensure that check has cleared. Otherwise, you’ll need to subtract the $49.47 from the $850.67 displayed balance.

Once you have determined your true balance, now, it’s just a matter of simple math. Just update your balance in your checkbook register by keeping track of each withdrawal and deposit as they occur. This includes debit card transactions as well as checks and automatic payments, as well as your payroll deposits if you have direct deposit.

Once you start logging each transaction, you can cross-reference to what posts to your account. You can either wait until you receive your monthly statement, or you can check daily or every other day, denoting each transaction in your ledger that clears and ensuring the totals match.

By keeping a running total of your transactions, your balance should match the balance on the statement. If the balances don’t match, check your register to see if a transaction has not been processed, if the bank has a record of a transaction that you do not have recorded in your register (then check this transaction to ensure it’s one you recognize or simply forgot to log) or if the amount of one of the transactions differs from what you registered.

If the balances still do not match, check your register and receipts against the record from the bank. Also check for any mathematical mistakes in your register (math mistakes happen to all of us!). If you believe an error has occurred, contact your bank.

Despite checkbooks and checks becoming more obscure in today’s technological landscape, having a handle and knowing just how much money is in your account always will be the most important tool you can have in your financial toolbox and is key to your financial health.

Tracking your transactions keeps you keenly aware of just how much money you have, helps you detect problems and, most importantly, allows you to plan ahead financially.

Financially Fit is your home fitness guide for all things financial, provided by RCB Bank. Find money-building tips, insights and inspiration to help you improve your financial well-being at RCBbank.com/GetFit. Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. Member FDIC.

Holiday shopping season is here, which means more spending – and more fraud.

It’s no coincidence that the busiest season for shopping coincides with the highest period for fraud. Every day, fraudsters target consumers with an array of legitimate seeming propositions. But during the holidays, fraudsters make extra efforts to trick and defraud consumers. Every year, according to the Federal Bureau of Investigation, thousands of people become victims of holiday scams. Scammers can rob you of your hard-earned money and personal information and destroy holiday cheer.

Here are the top three fraud threats coming this holiday season:

Fake Retail Sites

Are you seeing a deal that’s too good to be true? That might be because it is. Fake retail sites are websites set up to look like real merchants (including well-known brands), but actually lead to a fraudster-held account. Fake retail sites have become especially popular in the age of social media, where posts and accounts look legitimate but are not.

What to Watch Out For: Domain name and or website copy contains misspellings, IP address is non-U.S., website doesn’t have a HTTPS (secured) URL, or generally looks off.

Mystery Shopping

Everyone is looking to pick up a little extra cash this time of year. Mystery shopping scams (or secret shopping scams) take advantage of that desire by luring victims into job opportunities where they “test” products and services but are first required to pay the employer for a fee or license. In reality, the job doesn’t actually exist.

What to Watch Out For: Shopping or dining-related job opportunities that require you to pay the employer first, wiring money to your employer or depositing a check into your bank account on their behalf.

Charity Scams

Scammers are always finding new lows. Charity scams take advantage of our generosity. Fraudsters pose as a legitimate charitable organization and steal donations before they’re discovered.

What to Watch Out For: High-pressure pitches through phone, email or in-person; to donate, go to accredited charities.

And always remember – even during the Christmas season – if it seems too good to be true, it probably is.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank, Member FDIC.

Source:

https://www.fbi.gov/how-we-can-help-you/safety-resources/scams-and-safety/common-scams-and-crimes/holiday-scams

Whenever you take out a loan, you’ll almost always end up paying more back than you borrowed.

In almost every case, it will cost you less to pay off your loan faster, making a payment each month that is more than the amount due.

If you’ve been paying on a loan for awhile and it’s getting close to where you can pay it off, you may notice that the payoff amount of the loan is different than your loan’s current balance.

No, it’s not a mistake. That’s because the difference likely is because of the way the interest of your loan is calculated. Basically, your balance is what you currently owe, and your payoff is what you owe plus interest that accrues from the statement date and a specific payoff date.

If you’d like to pay off your loan early, check to see if there is a pre-payment penalty. If you are considering paying off your mortgage, you can request a payoff amount from your lender or servicer. According to the Consumer Financial Protection Bureau, if your loan is a “closed-end” loan secured by a dwelling, once you request a payoff amount, servicers must provide you with an accurate statement of the total amount that would be required to satisfy your obligation in full as of a specified date.

The best way to get the accurate payoff amount is to contact your lender. And keep in mind, getting a payoff quote does NOT obligate you to pay off the loan as quoted. If you change your mind, you can simply keep making the monthly payments. And if you’d like to pay it off early at some point in the future, contact your lender again to get an updated loan payoff amount.

Financially Fit is your home fitness guide for all things financial, provided by RCB Bank. Find money-building tips, insights and inspiration to help you improve your financial well-being at RCBbank.com/GetFit. Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. Financing available with approved credit. Restrictions apply. Member FDIC.

Source:

https://www.consumerfinance.gov/ask-cfpb/what-is-a-payoff-amount-is-my-payoff-amount-the-same-as-my-current-balance-en-205

If you’re in the market for a loan, one tactic some unscrupulous lenders use is what’s called “yo-yo financing.”

A yo-yo financing scam happens when a borrower agrees to a loan and signs a contract. But after the contract is signed, a few days or weeks later, the lender will call you and say that your financing wasn’t approved and they no longer can offer you the agreed-upon rate.

The lender will then try to renegotiate the loan or the offer will be completely rescinded. They’ll then offer a new rate that has a much higher rate and higher monthly payments.

The up and down is much like a yo-yo, which is how the scam gets its name.

It is important to be aware of this tactic so you don’t become a victim.

Here are some tips to avoid yo-yo scams:

• Don’t agree to the loan until you’re ready. If you’re not ready for the loan, don’t let the lender pressure you into taking one.
• The Federal Trade Commission advises when getting a loan to ask if the deal is final, and, if the lender says yes, to get it in writing.
• Read the fine print. If you see something that doesn’t look correct, ask the lender to explain it in further detail.
• Don’t be afraid to walk away. If you’re not getting a good feeling from the lender, just leave. It’s better to walk away than to be subjected to a yo-yo scam. You’ll save your valuable time in the process.

If you believe you’ve been a victim of a yo-yo scam, visit the FTC’s website and fill out a complaint form at http://reportfraud.ftc.gov. After submitting a complaint, you may be contacted for more information.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank, Member FDIC.

Sources:

https://consumer.ftc.gov/media/79933

https://www.ftc.gov/business-guidance/blog/2016/09/deal-or-no-deal-ftc-challenges-yo-yo-financing-tactics

CLAREMORE, Okla. – RCB Bank Trust recently donated just more than $5,700 to the Rogers State University Foundation.

“RCB Bank has a rich history of giving back to the communities we serve,” RCB Bank AVP Wealth Advisor Mary Wood said. “I’m proud that RCB Bank is committed to continue support of Rogers State University.”

Pictured: RCB Bank AVP Wealth Advisor Mary Wood, right presents a $5,718.11 check to Rogers State University Vice President for Development Steve Valencia.

RCB Bank is a $4.1 billion community bank with 65 locations in 36 cities across Oklahoma and Kansas. Founded in 1936, RCB Bank is committed to serving its communities with conservative banking practices and progressive banking products. Learn more at RCBbank.com or give us a call at 855.226.5722. Member FDIC, Equal Housing Lender, NMLS #798151.

There are so many types of fraud, it’s hard to keep up with them all. That’s why it’s important to stay vigilant at all times to protect yourself from scammers.

Fraudsters know the more that people become aware of their scams, the less likely they are to work. So they are constantly adapting their techniques.

One newer scam that has seen a sizable uptick over the summer is smishing.

What is smishing? It’s similar to phishing. But instead of an unsolicited email, it’s through text messaging. The term smishing is a mashup of SMS – short messaging service (i.e. text messages) – and phishing.

A typical smishing message will seem like it’s from a bank, but it’s not just limited to fake banking messages. Recently, the United States Postal Service issued a media release warning against unsolicited text messages claiming that a USPS delivery needs immediate response. Other messages may appear to be from Costco, Home Depot, Amazon or other retailers.

No matter where the message says it’s from, one thing holds true – scammers are trying to gain your personal information.

The scammers are hoping to receive information such as: account usernames and passwords, Social Security number, date of birth, credit and debit card numbers, personal identification numbers (PINs) or other sensitive information. This information is used to carry out other crimes, such as financial fraud.

If you feel like the message may truly be authentic, you should still verify before sending information. If you get a text purportedly from a company or government agency, check your bill for contact information or search the company or agency’s official website. Call or email them separately to confirm whether you received a legitimate text. A simple web search can thwart a scammer.

The Federal Communications Commission offers these tips to avoid becoming a victim of a smishing attempt:

• Never click links, reply to text messages or call numbers you don’t recognize.
• Do not respond, even if the message requests that you “text STOP” to end messages.
• Delete all suspicious texts.
• Make sure your smart device’s operating system and security apps are updated to the latest version.
• Consider installing anti-malware software on your device for added security.

The bottom line – as it is in most attempted scams – is stop before automatically sharing your information, no matter how official it looks. Verify the authenticity of the message you receive. With due diligence, you can avoid becoming a victim of a scammer.

If you think that you are a victim of smishing, you should contact law enforcement to report the scam. You can also file a complaint with the FCC at no cost. If you have given your bank information to scammers, call your bank and inform them to see what your bank can do to protect your accounts.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank, Member FDIC.

Sources:

https://www.fcc.gov/avoid-temptation-smishing-scams

https://www.uspis.gov/news/scam-article/smishing-package-tracking-text-scams

Paying off your auto loan early can have some big benefits – but is it right for you?

The answer to that question depends on many factors, including the interest rate and terms of your loan, your financial goals, your other debt obligations and your budget.

First, you should check to see if your loan contract stipulates that a fee or penalty be paid for paying it off early.

If there is an early payoff fee or penalty, you’ll have to do the math and see if the potential savings of paying it off early outweighs the penalty or fee.

If you’re carrying massive credit card debt, it likely will be better to tackle that debt first. Once that is conquered, that could free up even more money to help you pay off your auto loan faster.

But if there’s not an early payoff fee or penalty, and you don’t have a lot of credit card debt, then in most instances, paying off your auto loan early will be beneficial to your financial well-being.

Firstly, paying off your loan early assumes you already have an emergency savings account. If you don’t have money for unexpected emergencies, you should instead take the extra money you would use to pay off your loan and instead secure funds for an emergency savings account.

But if you do already have an emergency savings account, paying off your car loan early will lower your debt-to-income ratio. A lower DTI will improve your credit score and can help you qualify for lower interest rates if and when you need to borrow money.

Paying off your auto loan early also can help you make progress toward other financial goals you have. Saving for a dream vacation? You can make that a reality quicker without an auto loan payment. Wanting to boost your retirement? Putting that money into your retirement fund likely will pay off in the long run.

You can always talk to a financial advisor to get an expert opinion on the best way to meet your financial goals.

Financially Fit is your home fitness guide for all things financial, provided by RCB Bank. Find money-building tips, insights and inspiration to help you improve your financial well-being at RCBbank.com/GetFit. Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. Member FDIC.

Source:

https://www.consumerfinance.gov/ask-cfpb/can-i-prepay-my-loan-at-any-time-without-penalty-en-843/

Do you think owning a home is out of reach because of student loans? Have you explored a mortgage in the past only to be denied because of student loan debt?

The Federal Housing Administration made a change recently that has made it easier for those with student loans to qualify for an FHA loan. That change, coupled with the upcoming student debt forgiveness program, could spark the housing industry as more people will qualify for mortgages.

“The change for FHA Single Family Title II forward mortgages remove the current requirement that lenders calculate a borrower’s student loan monthly payment of one percent of the outstanding student loan balance for student loans that are not fully amortizing or are not in repayment. The new policy bases the monthly payment on the actual student loan payment, which is often lower, and helps home buyers who, with student debt, meet minimum eligibility requirements for an FHA-insured mortgage,” according to the U.S. Department of Housing and Urban Development.

Your student loan debt is part of your debt-to-income ratio. Your DTI can affect how much money you’re qualified to borrow and your interest rate. The higher your DTI, the riskier you appear to lenders.

However, your DTI is just one factor in the underwriting of a mortgage. While this change may help your DTI, there also are many other factors used to determine if you qualify for a loan, such as your credit score, income and work history to name a few.

If you’ve applied for a mortgage in the past only to get denied because of your student loan debt, or if you never applied because you feared your student loan debt was too high, now may be the time to seriously research homeownership and start taking the steps to get prequalified for a mortgage.

Whether you chose to start the prequalification process now or after the federal government’s student loan forgiveness program (set for later 2022), it’s best to be prepared so you’re not flying blind into the process. Research mortgage lenders and find one who understands your needs and will help you navigate the entire process, from origination to closing.

Student loan debt may seem to be overwhelming when you’re trying to buy a house. Fortunately, the federal government’s recent changes may clear a path to making your dream home a reality.

Opinions expressed above are the personal opinions of RCB Bank personnel and meant for generic illustration purposes only. With approved credit. For specific questions regarding your personal lending needs, please call RCB Bank at 855-BANK-RCB. Some restrictions apply. RCB Bank is an Equal Housing Lender and member FDIC. RCB Bank NMLS #798151.

Source:

https://www.hud.gov/press/press_releases_media_advisories/hud_no_21_103

Whether you want to boost the value of a home you just purchased or are looking to boost the value of your home to sell it, making home improvements can increase the value of your home.

The value of your home depends on many factors, including the community in which it’s located and the demand for houses in the area.

But some factors you have control over, and these tips can help improve the value of your property as a whole.

Curb Appeal

The first thing you can do is to improve your property’s curb appeal. This generally is the easiest and most economic change to make. Your home’s first impression goes a long way.

According to a 2020 joint study by the University of Texas-Arlington and the University of Alabama, your home’s curb appeal can account for as much as 7% of the property’s total value.

It’s as simple as power washing your driveway, washing your windows and siding, keeping your yard mowed while adding new plants and fresh mulch. These are things that you can do yourself, and they all give your home a great first impression.

Update Your Kitchen and Bathroom(s)

To many people, the kitchen is the home’s greatest feature. And, if we’re being honest, outdated or dim bathrooms aren’t appealing one bit. So updating these two areas can lead to an immediate increase of value in your home. But, these two areas oftentimes are the priciest rooms to remodel, so keep that in mind.

However, if a complete remodel is beyond your budget, a minor remodel could still impact your house’s value. New appliances or a fresh coat of paint on the walls and cabinets can lead to an uptick of value.

A Fresh Look

Speaking of paint, a new coat of paint in other rooms of your home can give it a fresh and updated look. Painting the rooms yourself is a low-cost way to improve the value of your home. A bright coat of paint goes a long way and can add instant charm to your house.

Likewise, painting the doors can have a similar effect. A fresh coat of paint on the front door can make your house look inviting and is another way to improve its curb appeal.

Opinions expressed above are the personal opinions of RCB Bank personnel and meant for generic illustration purposes only. With approved credit. For specific questions regarding your personal lending needs, please call RCB Bank at 855-BANK-RCB. Some restrictions apply. RCB Bank is an Equal Housing Lender and member FDIC. RCB Bank NMLS #798151.

Sources:

https://www.hud.gov/program_offices/housing/sfh/title/sfixhs

https://www.uta.edu/news/news-releases/2020/02/11/curb-appeal

As inflation continues to rise in the first half of 2022, consumer debt is rising right along with it, according to the Federal Reserve System’s consumer credit report released on Aug. 5.

Consumer debt in the United States is nearly $3.4 trillion, according to the Fed. That is approximately $10,600 of debt for every man, woman and child living in the United States.

Staring at a mountain of debt is daunting. But with proper discipline – and a lot of hard work – you can eliminate your debt.

If you’d like to learn how, read on for these tips on how to greatly reduce and eventually get out of debt.

Know What You Owe and Track Your Spending

You can’t get out of debt if you don’t know where your money is going.

The first step toward taking control of your financial situation is to do a realistic assessment of how much money you take in and how much money you spend, according to Federal Trade Commission.

Start by listing your income from all sources. Then, list your “fixed” expenses — those that are the same each month — like mortgage payments or rent, car payments, and insurance premiums. Next, list the expenses that vary — like groceries, entertainment, and clothing. Writing down all your expenses, even those that seem insignificant, is a helpful way to track your spending patterns, identify necessary expenses, and prioritize the rest.

Change Your Routines

It’s important to account for every penny earned and spent. Most people are shocked at the amount of money spent monthly on fast food lunches, coffee shops and online purchases. Small expenses add up.

By changing your habits – packing a lunch instead of eating out or brewing coffee at home or drinking from the “office pot of coffee,” you can quickly accumulate “extra” money in your budget.

Then you can take those savings and make a debt payment immediately. The instant gratification of seeing balances fall can be extremely motivating.

Tackle Your Debt

Small debt victories likely will make you feel good and motivate you to continue. But you must find a strategy that is right for you, according to the Consumer Financial Protection Bureau. The CFPB even offers a worksheet to help.

Here are the two methods the CFPB recommends. Both strategies have their pros and cons, the CFPB says.

Snowball Method – Tackle one debt at a time.

• List all debts in order from smallest to largest.
• Pay minimum payment on all debts while throwing as much money as possible to the smallest debt (for example, the money saved by changing your routines.)
• After the smallest debt is paid, move on to the next smallest debt until debt free.

Highest Interest Rate Method – Pay a little more than the minimum payment on all debts.

• Pay the minimum balance on each debt.
• Take extra money and apply it to the debt with the highest interest rate.
• Pay off debts in order from highest to lowest interest rates.

Don’t Take on More Debt

You cannot borrow your way out of debt. Low-interest payments and credit cards may indeed be a good deal, but you should work toward paying down what you currently owe before adding any new debt.

It’s important to try to make paying off your debt a top priority, because the way that you manage your credit could determine how much access you have to it in the future. Don’t be afraid to talk to a banker or a financial professional for suggestions on ways to attack your debt situation.

Financially Fit is your home fitness guide for all things financial, provided by RCB Bank. Find money-building tips, insights and inspiration to help you improve your financial well-being at RCBbank.com/GetFit. Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. Member FDIC.

Sources:

https://www.federalreserve.gov/releases/g19/current/default.htm

https://www.consumerfinance.gov/about-us/blog/how-reduce-your-debt/

https://consumer.ftc.gov/articles/coping-debt

As students head back to school and college, fraudsters are eagerly waiting – not only for the students, but for their parents and relatives as well.

But college students are especially susceptible to being a target. According to the Federal Trade Commission (FTC), people aged 20 to 30 lose money to fraud more frequently than older consumers.

Here are some common back-to-school type scams for which to be on the lookout:

High school diploma scam

Scammers will prey on those who are seeking their high school diploma.

• If you have to pay for your diploma, it is a scam. You may need to pay for classes to earn your diploma, but once you earn it, you don’t have to pay for the diploma itself.
• They claim they’re from the federal government. Educational programs are affiliated with state governments, not the federal government.
• You can earn the diploma quickly. If there are no tests or classes involved, it is a scam.

Student tax scam

If you receive a text, email or call from the IRS claiming that you did not pay your student tax, this is a scam. The IRS always reaches out through mail first and will never demand payment through a wire transfer. If you are threatened with imprisonment, this also is a sign it is a scam.

Scholarship scams

Fraudsters know that education costs money and have many scholarship scams designed to get your money.

• Never pay to apply for government student loans or financial aid. If you have to pay, it is a scam.
• Also, you should never pay for a scholarship. If you are asked to pay fees in order to receive a scholarship, it is a scam.
• If an organization guarantees you will get a scholarship, it most likely is a scam. No organization can absolutely guarantee a scholarship will be awarded to certain students.

Fake check scams

Scammers will target students who are looking to make money. According to the FTC, the scams that target students often involve jobs that could be done on the side — like being a mystery shopper, advertising with a car wrap or working as a part-time assistant or dog walker for someone pretending to be your professor. These scams all involve someone sending you a check, asking you to deposit it, sending some of the money to someone else, and keeping the rest as payment.

However, those “jobs” are all fake, and the check will bounce – and when it does, and the bank realizes the check was fake, it will want that money back.

Remember, as with all scams – just like the ones mentioned above – if it sounds too good to be true, it probably is.

If you spot a scam, report it to the FTC at http://ftc.gov/complaint.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank, Member FDIC.

Sources:

https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2019/10/not-what-you-think-millennials-fraud

https://consumer.ftc.gov/consumer-alerts/2022/03/college-students-we-want-hear-you