What to Know: Rural Development Program

Does buying a home feel out of reach because you think you haven’t saved up a down payment? Take a look at the U.S. Department of Agriculture Rural Development Loan (RD loan or USDA loan), which may provide up to 100 percent financing for qualified households purchasing homes in eligible rural areas.

If you live in a designated rural area, you may qualify for a USDA Rural Development Loan. This program helps rural individuals, families, communities and businesses obtain the financial support they need to improve their quality of life and economies. If you would like to buy a home in an eligible rural area, the USDA currently offers two types of loans:

Direct Loans

• Low to very low-income homebuyers
• Offered directly by the USDA
• 33-year fixed interest rate (typical term)
• Applicant’s income must be below local low- or very low-income limits as determined by the USDA
• Payment assistance may be available
• Apply at your local USDA Rural Development office

Guaranteed Loans

• Moderate-income homebuyers
• Offered by lenders such as banks, and guaranteed by the USDA
• 30-year fixed interest rate
• Applicant’s income must be below local moderate-income limits determined by the USDA
• Apply with a local USDA-approved lender

If you need help, you can also get repair and refinance loans through the USDA rural development program. Repair loans are offered directly by the USDA, while a loan to refinance is offered by lenders such as banks.

Financing for Rural Development Loans

Rural development loans do not require a down payment and must not exceed the purchase price limit set by USDA. They do charge a funding fee that is financed into your loan along with a monthly guarantee fee. New construction is allowed, but limited to 90% loan-to-value and the home cannot ever have been occupied. The eligibility of the loan will depend on several factors including, but not limited to, your adjusted household income, debt ratio, credit score and the property.  Other requirements for a guaranteed loan include:

• You must live in an eligible rural area. Generally, rural areas with a population of 35,000 or less are eligible.
• Meet income eligibility based on your area (cannot exceed 115% of median household income).
• Agree to personally occupy the dwelling as your primary residence.
• Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien.
• Generally, you cannot own any other real estate.

Rural Development Interest Rates  

If you are looking to buy or refinance, talk to a lender first to explore your eligibility, financing and down payment options. I am here to help, even if you are not an RCB Bank customer.

Sources

Are You Looking to Buy a Home or a Homeowner Needing Help (usda.gov)

Single Family Housing Guaranteed Loan Program | Rural Development (usda.gov)

Single Family Housing Direct Home Loans | Rural Development (usda.gov)

The loan you choose will depend on your financial situation, how much you have to put down and where you want to buy a home. It is always a good idea to talk with a lender before deciding what loans to choose. Lenders at RCB Bank are happy to help answer questions even if you are not a customer. Give us a call or visit our online Mortgage Center.

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

Phishing is fraudulent scheme that scammers use to obtain personal information, such as account numbers, passwords, and banking information. Scammers take this information to access important accounts, commit identity theft or steal from bank accounts. Phishing is usually done through scam email or text messages, and over 150 million scams are sent globally per day.

How to Detect Phishing

Although our spam filters catch around 90% of messages, that still leaves a 10% risk of phishing. This which leads to the question, how do you detect a fake email? Many email scams pretend to be a company, someone you know or do business with. Often these messages have spelling errors, attachments or a sense of urgency. Other red flags to detect a phishing email or text message include:
• The sender asks you to click on a link to make a payment, claim a prize, or confirm information.
• The sender says they noticed suspicious activity or log in attempts.
• The subject line and message do not relate to one another.
• The message has grammatical errors, is out of the ordinary or sent at a random time.

What to do if you Suspect Phishing

If you receive a message with any red flags or suspect it to be a fraud, do not click on any links. In some cases, even clicking on the message can give information access to the scammer. If the email is suspicious and claiming to be from someone you know, do not directly reply to the sender. Instead, create a new message to the person you are familiar with asking if they sent the email. Do not click on any links or attachment in the text message or email. Instead, hover over the email link and look for random numbers or letters that may look odd or suspicious. Finally, delete all messages that are suspicious. Deleting the message will ensure that you do not accidentally click a link or respond.

Report Email Scams

If you received or think you received a phishing email or text message, report it to your company, email provider, a government body, or the organization the message was allegedly from. Ways to report phishing:
• Many companies have a policy when it comes to phishing emails. If you are unsure what this policy is, ask your IT team before you receive a potentially harmful email.
• Most email providers have a place on their website to report phishing. When users report phishing or spam, providers can adjust accordingly to update spam/junk folder filters.
• The government has a place to report phishing as well. The Cybersecurity & Infrastructure Security Agency (CISA) helps protect victims of phishing and prevent it from happening. To report a phishing email to CISA, you can forward the email to [email protected].
• If the scammer is pretending to be an organization, you can often report the email to that organization. Many companies have a place on their website to report a phishing email or message.
Phishing messages are sent every day, at all times of the day. Although your spam folder may catch most of them, many still come through. Phishing can cause the loss of personal information or identity theft, so it is important to understand the red flags and know what to do if you receive one of these messages.

https://www.consumer.ftc.gov/articles/how-recognize-and-avoid-phishing-scams
https://www.phishing.org/what-is-phishing
https://us-cert.cisa.gov/report-phishing
https://www.howtogeek.com/437513/what-should-you-do-if-you-receive-a-phishing-email/

How to Buy a Second Home

If you visit the lake regularly or love the idea of having a home away from home, it may be worth it to invest in a second home. With mortgage rates still near historic lows, now may be the time to buy property in your favorite vacation or travel destination.

Second Home Loan Requirements

There are specific requirements for defining a second home. Fannie Mae’s second home requirements are:

• It cannot be a full time rental or investment property. Second home loans tend to have lower rates than rental and investment properties.
• Restricted to single-unit dwellings.
• Must be suitable for year-round occupancy.
• Cannot be subject to any agreements that give a management firm control over the occupancy of the property.
• The borrower must have exclusive control over the property.

You may also need to need to meet minimum distance requirements from your primary residence. If it is located in a recreational area such as a lake or a ski resort, the minimum distance requirements may not be required.

Conventional Financing for a Second Home

The loan process is similar to purchasing a primary residence with small differences in minimum down payment and reserve requirement. Second homes require at least 10% down. The lender will need to verify you have sufficient funds for closing and between 2-6 months’ worth of reserves to cover both your primary and second home loan payments. Since government loan programs (FHA, VA, USDA) are not available for second home financing, let’s look at other financing options.

Second Home Financing: Cash-Out Refinance

A cash-out involves refinancing your primary residence mortgage and receiving cash for the remaining equity. You need sufficient equity in your home for this to be an option. For example, if you owe $100,000 on your home worth $500,000, you may be able to cash out up to 80% loan-to-value (LTV), which would be $400,000 minus the $100,000 you owe. This leaves you with $300,000 in cash to purchase your vacation property. You can choose term options from 5-30 years fixed or adjustable, plus you’ll have one monthly payment, not two.

Second Home Financing: Home Equity Line of Credit (HELOC)

A Home Equity Line of Credit (HELOC) adds your loan to your primary residence. Typically, this loan will not pay off your current mortgage, but be a second lien adding to your monthly expense on top of your current mortgage. Depending on the lender, this loan may go to a LTV higher than 80%, which helps if you need more funds than what 80% will allow. The drawback is this type of loan is typically adjustable and at a higher rate than today’s conforming loans.

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

What is a Money Market account?

A money market account is an interest bearing account that typically earns higher interest than a traditional savings account. The advantage of a money market savings account is the ability to earn a higher interest rate, insurance protection and the ability to write checks and use a debit card. Banks generally require a minimum balance to be met when you open a money market account and will impose fees if the amount in the account falls below the minimum.

What are the benefits of a Money Market account?

Besides debit card and check writing privileges, money market accounts offer a number of benefits.

• They allow for guaranteed earnings and FDIC insurance protection of up to $250,000 per depositor per account.
• Your money is also easily accessible and can be immediately withdrawn if you need it.
• Money market accounts also lack the risk of traditional investments.

When should I get a Money Market account? 

There are many situations when a money market account is a great savings option. If you have a short-term savings goal such as a home renovation, wedding, tax payments or funds for a new car, money market accounts are very useful. They can also be used to create an emergency fund since you have unlimited access to the money and it will accrue higher interest when not being used. It is useful to note that Money Market mutual funds are different from Money Market accounts and do not have the benefits of FDIC insurance.

Money Market vs. CD

Whether you choose a Money Market or CD (Certificate of Deposit) depends on your goals. While both accounts are FDIC insured, higher interest, low risk investments, there are some key differences. The main difference between a Money Market account and a CD is that you do not have regular access to your funds after opening a CD. If you choose a longer deposit period, you will get a better interest rate, however, you will be penalized if you pull the funds out early. If you have a longer-term financial goal, such as five or ten years, it may be better to secure a higher interest yield.

The key is to talk with a financial planner before making any decisions about your investment strategy. I am here to help, even if you are not an RCB Bank customer. Whether you are a customer or not, RCB Bank is here to help. Our wealth advisors can help with all of your questions about retirement investments. Give us a call at 855-226-5722.

Opinions expressed above are the personal opinions of Arnold Beevers and meant for generic illustration purposes only. For specific questions regarding your personal lending needs, please call RCB Bank at 855-BANK-RCB.RCB Bank is an Equal Housing Lender and member FDIC.

How much is required for a down payment on a house?

How much money you need for a down payment on a house depends on your budget and what type of loan you apply for. You may have heard that 20% down is what you need, but that is simply a preferred number, not a requirement for many lenders. If you are able to put 20% down it will reduce your monthly mortgage payments and will likely allow you to avoid a Mortgage Insurance Premium (MIP) every month. However, many borrowers do not have 20% down. Here are some of your options if you do not have a large down payment for your house.

House Down Payments with No Money Down

USDA Loan

If you are considering a home in a suburban or rural area, the U.S Department of Agriculture Rural Development loans offer up to 100% financing to qualified homes in eligible areas. Since USDA loans are federally backed, they often have interest rates lower than conventional loans as well. You may also be surprised to find what the USDA considers a rural area. According to the 2017 USDA Rural Development Performance Report, nearly 72% of the nation’s land mass is rural. You can see if your area qualifies on the map linked here.

VA Loan

If you are an active or retired United States military service member, as well as some reserves, you can potentially get 100% mortgage financing through the Department of Veteran Affairs. In fact, nearly 90% of all VA backed home loans are made without a down payment. You will still need to do a certificate of eligibility and may have to finance a VA funding fee into your mortgage, but overall, VA loans are some of the best mortgage deals out there.

Low Cost Down Payment Options for a House

Conventional 97 Loan

A few years ago, Fannie Mae and Freddie Mac started offering a Conventional 97 loan that only requires a 3% down payment for first-time homebuyers. This loan has no income limits, but tighter restrictions than conventional loans and it carries higher interest rates. To receive a Conventional 97 loan, you will need a strong credit score, reliable income and employment, and a debt-to-income ratio under 43% (in most cases). The property must be your primary residence. This includes a single-family home, a condo, planned unit development or co-op. If you are not a first-time homebuyer, Fannie Mae and Freddie Mac also offer 97% loans with lower interest rates and mortgage premiums, however these are limited by income.

FHA Loan

The Federal Housing Administration offers mortgage loans with as little down as 3.5%. FHA loans do require a mortgage insurance premium. This is charged to the borrower two different ways; as a one-time fee of 1.75% of the loan amount and as a monthly premium. The duration and cost of your MIP may last for the duration of the loan. However, you do have the option to refinance your home at any point after you close the mortgage. This may be especially helpful when you have paid 20% of the home’s value and can get a new loan that does not require mortgage insurance. Similar to the Conventional 97 loan, there are no income limits, the home must be your primary residence.

The loan you choose will depend on your financial situation, how much you have to put down and where you want to buy a home. It is always a good idea to talk with a lender before deciding what loans to choose. Lenders at RCB Bank are happy to help answer questions even if you are not a customer. Give us a call or visit our online Mortgage Center.

Sources

VA Home Loan Types | Veterans Affairs

Welcome to Rural Development | Rural Development (usda.gov)

Federal Housing Administration | HUD.gov / U.S. Department of Housing and Urban Development (HUD)

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

CLAREMORE, Okla. – RCB Bank is pleased to announce that Lee Evans of Evans & Associates will be joining the Bank as a board member.

“Lee has been an important part of our bank as a member of our market board for the last eight years,” said RCB Bank President and CEO Roger Mosier. “He will bring extensive knowledge and important insight to the RCB Bank board.”

Evans is the President and CEO of Evans & Associates Enterprises, a construction company based out of Ponca City.

Evans has served on the SPCA board of directors since 2012. Since moving to Ponca City in 1997, he has served on the Ponca City Chamber of Commerce Board of Directors, the Economic Development Advisory Board, Poncan Theatre Board of Directors, Salvation Army Board of Directors, Oklahoma Asphalt Paving Association Board of Directors, the University Center Foundation, and the Ponca City Development Authority, serving as Chairman for four years. He currently serves on the RCB Bank Ponca City Advisory Board of Directors and is Vice Chairman of the Ponca City Development Authority serving on the Board for another term.

“Lee has done a great job on the Ponca City Advisory Board and we are excited for his new leadership role with RCB Bank,” said Ponca City Market President Jerod Helling.

Evans graduated from Oklahoma State University with majors in accounting and finance, and received his MBA from East Texas University. When he is not working, he enjoys riding Harley Davidson motorcycles, upland and waterfowl bird hunting, and spending time with family and friends at Grand Lake. He has been married to his wife, Laura, for 37 years and they have one son, Lee Jr., who has recently moved back to Ponca City to become involved in the family business.

RCB Bank is a community bank with locations 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.BANK.RCB. Member FDIC, Equal Housing Lender, NMLS #798151.

What is auto refinancing?

Auto refinancing is when you replace your current automobile loan with a new loan that has better or different terms. The new loan pays off your original loan and you open a new loan with new paperwork, a new loan rate and new terms and conditions.

When to Refinance Your Car

There are many reasons why someone might need or want to refinance their car:

• Interest rates have gone down since you took out your original loan. If interest rates have dropped, it is worth talking to a lender and seeing what your potential savings could be over the life of the loan.
• You didn’t get the best deal possible when you purchased the car and would like a more favorable loan now. Car dealerships may not offer the best rates possible. If you took out your loan with a dealer and did not negotiate the interest rate, a refinance could save you a lot of money over the life of the loan.
• Your personal finances have changed and you would like a lower monthly payment. While refinancing can reduce your monthly payments, it often means taking a longer loan payoff period. Your car will also depreciate during that time and you may pay more in interest over the life of the loan. Term restrictions may also apply depending on the year of the vehicle.
• Your credit has improved since you received your original loan. If you previously had bad credit or no credit, checking to see if you can get a better deal a few years down the road is a good idea. You may receive better offers and save money over the life of the loan with a lower interest rate.

How to Refinance Your Car

Before you decide to refinance, talk to a few lenders to see what rates they offer and whether it will save you money over the life of the loan. Find out if there is a prepayment penalty, or fee for paying off your other loan early, and what others fees you may be responsible for when you refinance. You will also want to make sure your car’s value is more than the loan amount left, or it could be hard to get a new loan. Some lenders may have restrictions about the age of the car they will refinance.

Once you have determined if refinancing is a good option, prepare your documentation. You will likely need a number of documents on hand to apply for a new loan.
• Proof of income
• Evidence of auto insurance.
• Information on your current loan.
• Information about the car, including the make, model, mileage, year and vehicle identification number, or VIN.
• Your driver’s license.

After you have gathered your documentation, shop around. Look for loan promotions in your area and get prequalified with a few different lenders. Some lenders also offer a discount if you use an automatic payment option, so don’t forget to ask.

GAP Insurance

GAP, also known as Guaranteed Asset Protection, provides the consumer with protection in the event of a total loss of the covered car due to vehicle theft or an accident. If a total loss occurs, you file a claim and GAP will pay off the residual loan balance that the primary claim fails to pay. Given the ever-increasing costs of a complete vehicle restoration after an accident, GAP protection may be needed more now than ever before.

When to Get Car GAP Insurance

As a general rule, if you have less than 20% equity in on the car when you open the loan, GAP coverage should be considered. Conversely, if you enter the loan with more than 20% equity in the car, GAP coverage becomes less beneficial and effective. Also, the longer the loan period, the more helpful GAP coverage becomes.

Our lenders are happy to answer your questions, even if you are not an RCB Bank customer. Connect with a lender in your area.

Financing available with approved credit. Other qualifications, restrictions, and conditions may apply.

Mortgage Refinancing Basics

What is refinancing?

A mortgage refinance is when you replace your current mortgage with a new mortgage. There are many reasons why homeowners may want or need to refinance:

• To shorten the terms of their current mortgage.
• To get a lower interest rate than their current mortgage.
• To use the equity of the home to finance a large purchase, pay for an emergency or consolidate debt.
• To convert your loan from an adjustable interest rate to a fixed interest rate.
• To get the PMI (primary mortgage insurance) requirement removed. Many FHA loans require mortgage insurance for the life of the loan. A conventional loan will generally not require mortgage insurance if you have paid your loan balance down to 78% or less of the appraised value.

When to Refinance

In order to know if refinancing is a good option for you, you need to understand your long-term goals and your current financial situation. If you are refinancing to take advantage of lower interest rates, there are mortgage calculators that give you an estimate of how much it will cost to refinance and how much you can save over the life of the loan.

You also want to consider the break-even point, or how long it takes to earn back the money you spent to refinance. For instance, if it will take seven years to earn back the money you spent to refinance and you plan on moving in three years, it is probably a bad idea to refinance your loan.

Your personal finances can also determine if it is a good idea to refinance. If you need lower monthly payments because money is tight, refinancing might be a good option to relieve the monthly stress of the payment.

How to Refinance Your Home

In order to refinance your home, you will need to get approved for a loan the same way you did for the original financing. The first thing to do is have your documentation ready. This can include pay stubs, bank statements, a credit check, tax documentation and anything else your lender requests. It is also important to know that a strong credit score will have a positive impact on your refinancing terms. You may want to wait a few months to improve your credit score before starting the process.

Once your documentation is in order and your credit score is in a good place, you should then apply for a refinance with several different lenders. Apply at three or four places and do so in a short-time period so it reduces the impact on your credit score.

After you receive the loan estimate from different lenders, compare those documents and determine how much you will likely pay in closing costs. Closely compare the lenders’ fees, which could include the Origination Fee, Discounts Fee, Underwriting, Processing and Tax service Fee. Some third party fees, such as appraisers and title company fees, will likely be the same no matter what lender you choose.  Choose the lender that works best for you and try to get your rate locked in as soon as possible. Then you will work with your lender to close on the loan in the exact same way you closed on your mortgage the first time.

No matter what you decide, do your research and ensure it makes financial sense to refinance before beginning the process. Lenders at RCB Bank are happy to help answer questions even if you are not a customer. Give us a call or visit our online Mortgage Center.

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

WINFIELD, Kan. – The Kansas Bankers Association is pleased to honor Loretta (Dee) Ledy for over 50 years of service in Kansas banks. Dee began her banking career in 1968 at First Federal Savings and Loan when she was a senior at Winfield High School.

Over the next 27 years, Ledy advanced from a teller to the Senior Vice President of Real Estate Lending. She served as the lending coordinator for secondary market loans, a CRA compliance officer, quality control, reviewed consumer loans, and assisted with loan acquisitions and real estate appraisals.

In 1995, Commerce Bank acquired Union National Bank, formerly known as First Federal Savings and Loan.  At that time, Ledy joined  the First National Bank of Winfield and CornerBank family. For the next 21 years, she served as Senior Vice President of Lending and Secondary Market Lending Coordinator for CornerBank.

“I love helping customers and am proud to have assisted three generations of customers realize their dream to purchase, remodel or build a home,” said Ledy.

When RCB Bank purchased CornerBank in 2016, Ledy continued serving customers as Assistant Vice President of Real Estate, Consumer and Commercial Real Estate Lending. She looks forward to serving her fourth generation of customers and continues to focus on giving the best customer service possible.

Dee is also active in the Winfield Soroptimists, Lions Club and First United Methodist Church. She has been happily married to her husband Mike for 52 years. They have two children and one grandchild, Skyler.

Pictured left to right: Doug Warham, President of Kansas Bankers Association; Craig Myers, CFO, RCB Bank; Roger Mosier, President, RCB Bank; Gregg Conklin, Winfield Market President.

RCB Bank is a community bank with locations 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.BANK.RCB. Member FDIC, Equal Housing Lender, NMLS #798151.

Malware, otherwise known as malicious software, is a type of fraud that uses viruses, spyware, or other software to intentionally damage a computer, server, device or computer network. Criminals use malware to steal personal information, commit fraud, send spam or monitor and control online activity.

There are many different types of malware, including spyware, viruses, worms, adware and ransomware. Your computer may contain malware if you are experiencing one or more of the following problems:
• Your computer slows down, crashes or displays constant error messages.
• You cannot shut down or restart your computer.
• Unexpected messages and ads frequently pop-up on screen.
• You lose access to computer files.
• Settings on your browser change, such as the toolbar or home page.

Ransomware

Ransomware is a type of malware designed to hold data hostage. Ransomware encrypts or conceals access to your files in attempt to get you to pay a ransom to regain access. This is a growing threat for both individuals and businesses alike. The most common targets for ransomware attacks are small to medium-sized businesses, school districts, municipalities, health¬care institutions and financial institutions.

How to Prevent Malware

Most common malware attacks occur on the internet and email. To prevent malware, use up-to-date security software and firewalls. Do not change the security settings on your browser and pay attention if you receive a security notification from your browser. More tips to protect yourself from malware:
• Use strong passwords and multi-factor authentication.
• Do not download any unknown software or click on links in email, text messages or social media.
• Do not click on pop-up ads or banners that show up on your computer.
• Back up your data regularly.
• In emails, you should never click on a link you do not know or recognize.

Report a Scam

If you think your computer has malware, report it to the Federal Trade Commission here. You can also file an incident with the Cybersecurity & Infrastructure Security Agency here. If your personal information is compromised or fraud has occurred, call your bank immediately and call a credit reporting agency such as Equifax to place a fraud alert on your account. You can also contact your state Attorney General to report fraud.

Types of Construction Loans

A variety of constructions loans are available to homebuyers. It all depends on your specific situation. If you want to shop around and potentially use more than one lender, then getting two separate loans (one for the construction and then a second to pay off the construction loan and put the debt into monthly payments) may be the best choice. If you prefer to work with one bank and one lender, a construction-to-permanent loan may be the best finance solution. The important part is that you talk with a trusted banking professional before making any decisions.

Construction Only Loan

In this scenario, the borrower actually gets two loans. The first loan finances the construction of the home and the second loan refinances the construction into a long-term mortgage. This type of loan allows the homeowner to work with different lenders for the construction and permanent financing if they would like. The upside of doing this this loan is that you may have more flexibility if there are cost overruns and you can typically draw out money more often. A potential downside is that you typically cannot lock-in your interest rate or obtain full underwriting approval on your permanent loan until 90 days or less before home is complete.

Construction-to-Permanent Loan

With a construction-to-permanent, or “one time close,” loan you finance the construction of your home and the permanent financing with a single loan. In this type of a transaction the lender releases the money to the builder, contractor or other authorized suppliers as the phases of the construction are complete. The upside of this type of loan is that you know the details of your permanent financing up front. The downside is that these loans may be more limited in the number of times you can draw money to pay builders and contracts. It can also be more difficult to change your loan amount due to cost overruns.

Renovation Loan

If you see the home of your dreams, but it is a fixer-upper, a home renovation loan may be the right solution. A home renovation loan is based on the value of your home after the renovation is complete. This means you are borrowing against the future equity of your home and not just its current value. This may be a good option if the renovations are likely to increase the value of your home and/or reduce the long-term costs of the home.

Home Equity Line of Credit (HELOC)

A HELOC is a line of credit secured by your home based on the current equity of your home. A HELOC may have lower closing costs than a traditional construction loan. Another upside is that most banks only charge interest on what you draw, or use, from the HELOC and not from the total amount approved. A potential downside is that rates for a HELOC are often variable and can increase throughout the life of the loan.

Lenders at RCB Bank are happy to help answer questions even if you are not a customer. Give us a call or visit our online Mortgage Center.

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

If you are an active or retired United States military service member, you can likely get help buying or refinancing a home. The Department of Veteran Affairs (VA) Loan helps current and former military members get better mortgage terms than you would with a private lender loan.

Eligibility Requirements for VA Home Loans

You may be eligible for a VA-backed purchase loan if the following three requirements listed below:

• Qualify for a VA-backed home loan Certificate of Eligibility (COE). Your COE is based on your service history and duty status. If you are currently active, you will need to show you served for 90 continuous days during wartime or 181 days during peacetime. If you are a veteran, your eligibility will depend on when you served, for how long and under what circumstances you exited the military. Click here for a full list of COE requirements for veterans. You are not required to have your COE to apply for a VA loan. Most lenders are able to pull your COE through the VA’s automated system.

• Meet the VA—and your lender’s—standards for credit, income and other requirements. A VA Loan is the only loan that does not require student loans deferred over one year to be included in the debt–to-income ratio, which is used by lenders to determine how much you can afford to borrow.

• You will live in the home you are buying with the loan. The VA developed occupancy requirements to ensure that VA loans are for primary residences only. Second homes and investments properties do not qualify for a VA loan. Homebuyers have 60 days to occupy the home after the loan closes, but the VA can extend this limit if you are on active duty or preparing to separate from service. A spouse or dependent child of an active service member also satisfies the occupancy requirement.

VA Loan Benefits

• 100% Financing – The VA guarantees this loan, potentially allowing you to finance the entire purchase price of the home. Nearly all conventional and FHA loans require the loan-to-value to be below 100%.

• No Monthly Mortgage Insurance Costs – Most loans with less than a 20% down payment require you to pay for monthly mortgage insurance. While there is no monthly mortgage insurance, there is a one-time funding fee, based on your eligibility and down payment. You may also be exempt from the funding fee – talk to a lender to find out.

• You Can Have Two VA Home Loans at a Time – VA does allow you to purchase another home if you are choosing to move prior to selling your current VA-financed home. It depends on how much entitlement you have left from the previous purchase and the loan limits in the area where you are buying your new home.

RCB Bank is proud to offer a VA loan benefit to our active duty service members and veterans. We can help you determine your eligibility and qualifications. We will walk you through the process from start to finish. Lenders at RCB Bank are happy to help answer questions even if you are not a customer. Give us a call or visit our online Mortgage Center.

Sources

Eligibility Requirements For VA Home Loan Programs | Veterans Affairs
Chapter 6 Home Loan Guaranty – Office of Public and Intergovernmental Affairs (va.gov)

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

Not every state requires home inspectors to obtain a license to do home inspections. Before you hire someone, check the home inspection requirements in your state. Your real estate agent will likely recommend a few inspectors, but you should call and interview them before hiring. Ask for references and a sample inspection report. Find out if they are bonded and insured. Also, examine their website and read reviews on Google, Yelp and Angie’s List™.

Inspections should be thorough with final reports often 25-80 pages long. Key areas that should be included are structural components, exterior features, electrical, plumbing, heating and cooling systems, insulation and ventilation, fireplaces, roof and crawl space. Don’t be afraid to ask questions and insist these areas be examined before they turn in their final report. Most home inspections cost between $350 and $600. If they ask for significantly more or less, that may be a red flag.

Know Your Home Inspection Options

Depending on the home’s age and condition, you may want to perform additional inspections. For instance, properties that do not have access to public sewer systems should have the septic system inspected. Similarly, a home that is not connected to public water should have the well and water tested. A pest inspection to check for termites or other wood destroying insects is also valuable. While all of these inspections may cost money up front, they may save you thousands of dollars in future repairs.

Understand the Benefits of Home Inspection

A thorough and professional home inspection allows you to examine any red flags before you decide to purchase a home. Sewer and drainage issues, such as standing water in the yard, erosion and heaved walkways may indicate the need for expensive fixes in the future. Check to see if the home is in a flood zone and look closely for any water damage or mold. Find the source of the mold or water damage and assess the costs to repair it before making a decision to buy. Foundation and electrical issues are also red flags in any inspection. Electrical issues may increase the chance of fire and major foundation issues may cost up to $10,000 to repair.

Negotiate Repairs that Protect Your Home  

If you feel confident in the results of the inspections and are ready to move forward, another round of negotiations will likely occur to discuss fixes or buyer/seller cost responsibilities. How these negotiations play out depends on the issues discovered during the home inspection. Remember, very few inspections are perfect. You may ask the seller to repair the issues before closing, however sellers are not always motivated to have high-quality work done. Instead, you may want to ask for a price reduction for repairs. You may also ask for a home warranty to cover the first year in case you need to repair the 25-year-old water heater or other appliances. Work closely with your realtor to determine how to approach repairs.

Lenders at RCB Bank are happy to help answer questions even if you are not a customer. Give us a call or visit our online Mortgage Center.

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

ARKANSAS CITY, Kan. – RCB Bank donated $1,000 and presents for four local families to Angels in the Attic, a local non-profit that helps people in need.

“This has been a challenging year for many in our community. The need is greater now than ever before,” said RCB Bank Market President John Sturd. “RCB Bank and our employees are happy to help Angels in the Attic fill that need.”

In addition to the monetary donation from RCB Bank, their employees donated enough to sponsor Christmas gifts for four local families.

Angels in the Attic is a local non-profit that serves the community by networking with other area groups, businesses, churches, and organizations to better assist individuals that are struggling. Their thrift store items support programs for back to school supplies, a food pantry, medications, utility and rental assistance and clothing for individuals in need.

Pictured left to right: Ivy Beals, Social Services Director; Kristin Dobbins, RCB Bank; Raven Nuss, RCB Bank; Janice Marr, Executive Director; Kim Fleetwood, RCB Bank; John Sturd, RCB Bank Market President

Pictured left to right: Ivy Beals, Social Services Director, Angels in the Attic; Janice Marr, Executive Director, Angels in the Attic; John Sturd, RCB Bank Market President; Jill Hunter, Board Secretary, Angels in the Attic.

RCB Bank is a community bank with locations across Kansas and Oklahoma. 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.BANK.RCB. Member FDIC, Equal Housing Lender, NMLS #798151.

‘Tis the season for shopping, gifts, cheer and scams. Scams? That’s right; every year fraudsters prepare to take advantage of unsuspecting shoppers. Fake ads and websites try to lure you into spending for items you may never receive. Imposter charities tug on your heartstrings to get a donation. Gift cards are duplicated or stolen before they are used by your loved ones. Learn how to sniff out these common scams and limit your risk this holiday season.

Debit Card Details Phishing

Fraudsters are smart and know that during the holidays we utilize our debit cards often. To seem “helpful,” scammers are calling debit card customers pretending to be Fraud Department employees to verify a customer’s debit card details. The fraudsters already have the 16 digit card number and expiration date. They are then asking you to confirm the 3 digit security number. Once they get that from the customer, they are then running free making purchases with the card. Remember, the RCB Bank Fraud Department will never ask for such information when they call. While this type of phishing scam is happening currently, it can happen year-round. Stay vigilant, friends!

Online Shopping Scams

During this holiday season, more people than ever are buying gifts online. Scammers prepare for this influx of web traffic with several schemes to steal your money, personal information or both. A common tactic fraudsters use is to create fake social media campaigns and websites that imitate major brand ads, but with great deals. According to the Better Business Bureau (BBB), be wary of ads that promise “last minute deals,” “flash sales” or “limited quantities.” In many cases, you will not receive the item you ordered or you may receive an inferior counterfeit item. Your credit card information can also be stolen, used to commit identity theft or sold on the dark web.

Gift Card Scams

The most common gift card scam involves tampering with the racks of gift cards displayed in stores. The criminals will use handheld scanners to get the barcode information and periodically call the retailer to see if they have activated the card. Once the card is purchased and activated, they either order material online or create a counterfeit card. The less sophisticated fraudsters will simply scratch off the PIN, record the barcode and wait for the card to be activated. Other gift card scams will create fake websites that offer gift cards to major retail chains in exchange for giving them information.

Charity Scams

Don’t let scammers take advantage of your generosity. Similar to real non-profits, scammers will solicit you through email, letters and phone calls. They may even have a website that looks legitimate. It is a red flag if any charity pressures you to donate right away or asks you to donate through a wire transfer or in gift cards. If you are unsure, check the BBB’s Wise Giving Alliance or Charity Watch to verify the organization.

What can shoppers do to protect themselves?

• Does the holiday deal seem too good to be true? Make sure you know the merchant when shopping online. Research the BBB rating for the business and stick with direct manufacturer websites for products.
• Do not click on a link in an advertisement or email as it could contain malware or take you to a cloned website where fraudsters steal your card information, address, etc.
• Giving is always a wonderful, positive and uplifting thing to do. Plan to give to certain organizations that you know, especially so you can see the fruits of your good work!
• If you feel you have been a victim of identity theft, put in a fraud alert immediately. Details on how to file a fraud alert can be found here. Then report it to the police, your bank and credit card companies. If you feel that you lost your identity due to online activity, please file a report with ic3.gov.

Sources

Scam, Fraud Alerts – Protect Your Digital Identity (aarp.org)

Inside the FBI: Holiday Scams — FBI

Internet Crime Complaint Center(IC3) | Home Page

Scams and Safety — FBI

What is Escrow?

As a homeowner, you are responsible for expenses beyond your mortgage payment such as property taxes, homeowner insurance and mortgage insurance. Put simply, an escrow account is set up by your lender and helps you budget for these expenses by including them in your monthly mortgage payment.

How Does Escrow Work?

First, your lender adds up your additional home-related costs outside your mortgage payment, including property taxes, homeowners insurance, mortgage insurance and flood insurance. Then, they divide the total cost of these payments by 12 months and add it to your monthly mortgage payment.

With an escrow account, you make one monthly payment that includes your mortgage principle and interest, plus a percentage of your insurance and tax expenses. Every time you make a mortgage payment, your escrow account grows. When insurance and tax payments are due, your lender uses the money in your escrow account to pay those bills.

Is an Escrow Account Required?

Most lenders require escrow accounts on mortgages where you pay less than 20 percent down. Your escrow account is set up at closing and allows you to pre-pay the required insurance and taxes for the following year.

If you put more than 20 percent down and decide not to open an escrow account, you will need to pay your property taxes and insurance premiums as lump sums. Depending on the value of your home, these payments can cost several thousand dollars each year. Make sure to budget for these costs so they do not catch you by surprise.

Escrow Management: Can my payment change over time?

Yes, if there are changes in insurance costs and taxes, your escrow payment will also change.

Your lender will review your escrow annually. The review looks at updated taxes and insurance costs to ensure the amount paid into the account is enough to cover costs. If costs have decreased, due to a change in insurance for example, there may be an overage and you will be issued a refund. If costs have increased, you will be required to make up the difference.

There are two ways to manage escrow payments if costs increase: 

1. Pay the difference in one lump sum. Your full payment covers the past payments and brings your account to balance. An increase in monthly payments is still necessary to cover the increased costs in the future, but you will not have to pay the shortage in future payments.
2. Divide and pay the amount over the next 12 payments. Paying back your shortage over time will increase your monthly payment because you are paying the shortage plus the increase in costs over the next year. This option will increase your payment by twice what the previous option would increase.

Financially Fit Tip: Shop Around for Insurance

To reduce how much your escrow fluctuates from year to year, review your homeowner’s policy and insurance plans. It is always a good idea to comparison shop and request quotes. If you find a better deal, contact your lender to update your escrow account information.

Lenders at RCB Bank are happy to help answer questions even if you are not a customer. Give us a call or visit our online Mortgage Center.

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

It is the season for giving thanks, so why not give back to your home. With these inexpensive updates, you can increase the resale value of your home and create a space you love even more.

Break Out the Paint

A little bit of paint can go a long way. While it is expensive to replace kitchen cabinets, sanding and painting them costs much less and can make the room feel brand new. The same goes for other rooms in your home. Just remember that neutral colors are better for resale value because they appeal to the most people. Paint can also refresh your old front door and add a pop of color to your house.

Bathroom Basics

There are plenty of ways to update your bathroom without breaking the bank. Bathtub looking a little worn? Paint it with epoxy. This gives the tub a fresh look and immediately improves the look of your bathroom. You can also replace outdated fixtures such as the sink and bath tub faucets to add a fresh touch. If you have old brass fixtures, a bottle of brass darkening solution can give them an antique look for less than $20.

Shine a Light

Every room in your house can benefit from new light fixtures. The first step is deciding what areas need an upgrade. Take an inventory of your lights and choose which ones to replace based on their positive impact.  A new chandelier above your dining room table adds a focal point to the room, while adding track lighting to a living room creates ambience and focuses attention on the furniture. In the kitchen, adding track lighting to the bottom of the cabinets makes tasks easier and adds a sophisticated finish. Just remember to choose something that reflects your style and matches the other lighting in the house.

Curb Appeal

You don’t have to hire a professional landscaping company to give your outdoor space a fresh look. If you already have patio furniture, buy new all-weather pillows to refresh the space. Brighten up a sidewalk or pathway with wire-free battery powered lights. Not only will it make the path safer, it is warm and welcoming. Other simple landscaping tasks include adding a border or edging material around your garden beds, building a fire pit or planting inexpensive perennials.

No matter what home improvement projects you choose, there is a simple and inexpensive way to make old spaces look new. Not only will you enjoy the updates now, they can also improve the resale value of your home in the future.

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

While most of us know saving money is a good idea, we often struggle to save for the future. Saving is not a one size fits all solution, but building a savings plan for your future is an important step to becoming financially independent. Talk with a wealth advisor about your personal goals. Your future self will thank you.

Build an Emergency Fund

Set a reasonable goal. Start by trying to save a small amount, such as $1,000. Don’t feel pressure about how much you are saving, just save something.

Take the next step: Track your spending and develop a budget. Do everything you can to stay within your budget. Little things will help you succeed, e.g., set up automatic savings with your bank, create a grocery list (and stick to it), cut coupons and save change.

Save for Education

Consider education investment programs. A traditional savings plan is good, but you also may want to consider an investment account.

Take the next step: Look up your state’s options for 529 plans or speak with a wealth advisor on interest-earning, tax-advantage plans. Some education plans allow you to use earnings on tuition and fees (including K-12 public and private), books, computer equipment and room and board.

Retirement Planning

Save today for your future self. There are four primary ways you can fund your retirement: personal savings (e.g., IRAs and investment accounts); Employer retirement plans; Social Security benefits and retirement income (rental property, part-time job).

Take the next step: Talk with a wealth advisor who can help you build a retirement savings plan and income strategy to maximize your savings.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. Investment products are not insured by the FDIC. Not a deposit or other obligation of, or guaranteed by the depository institution. Subject to investment risks, including possible loss of the principal amount invested. Ask for details.

DRUMRIGHT, Okla. – Until November 17, the RCB Bank in Drumright is accepting donations for the local food bank. RCB Bank is located at 121 W. Broadway St.

“We are proud to help people in our community during the holiday season,” says RCB Bank Retail Coordinator Stephanie Rose.

The food bank requests donations of canned tuna and chicken, canned fruits, soup and stew, beans (canned or dry), canned vegetables, cereal and oatmeal.

“We have done this event for several years and hope to donate more than ever this year,” said RCB Bank Market President Curtis Bales. “Every little bit counts when fighting food insecurity.”

Pictured from left to right: RCB Bank teller Laurelle Casteel and RCB Bank Customer Service Representative Rebekah Blansett show the current donations.

RCB Bank is a community bank with locations 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.BANK.RCB. Member FDIC, Equal Housing Lender, NMLS #798151.

Understanding Closing Costs

Now that you have found the perfect home, it is time to tie up all the loose ends and finalize the sale. Part of this process is to pay your closing costs. Closing costs can be a surprise, as they are more than most buyers expect, especially first-time homebuyers. With a good banker and real estate agent on your side, you can better understand and prepare for these costs. So, what is included in your closing costs?

What’s Included in Closing Costs?

Closing costs can be made up of multiple items. Costs from the lender may include origination fees, points, underwriting, processing, appraisal and a credit report, among other fees. These costs can vary from lender to lender and depend on several factors, but generally cost between $1,000-$6,000. Fees from the title company, such as a closing fee, title insurance, abstracting and the survey, can range between $1,000-$5,000 depending on the title company, state and individual transaction details. There will also be money needed at closing for your prepaid items. These consist of prepaid interest from the day you close through the end of the month, one year of homeowners insurance, as well as reserves deposited into your escrow account for taxes and insurance. Realtor fees are also included in closing costs. The exact amount varies from company to company, but generally they earn about 6%.

Know the Market

In the right market conditions, you may be able to get some or all of your closing costs paid for by the sellers. If homes aren’t selling as quickly or the market is slower, you have a stronger chance of the seller taking on some or all of the closing costs. In a market where houses are selling quickly and there are multiple bids on a property, the chances are slim that a seller will take on closing costs. Certain loan types as well as down payment programs will allow or limit the amount the seller can pay in closing costs.

Homeowner’s Insurance

While your real estate agent or banker may have a company they recommend to use for homeowner’s insurance, you should shop around and compare prices. Often, you can get a better deal or bundle your car and home insurance for savings.

Buying a house is a complicated process, but the more you know about closing costs, how much they cost and whether  you can get any of them paid for by the seller can make the process that much easier.

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

“There are a lot of ways to do the same thing,” says RCB Bank Treasury Services manager Keith Moyer. After 25 years of helping businesses with their banking needs, Keith has learned that success is more than the products you offer. “Many banks offer similar products, but for us it is about relationships. Our goal is to find the best solution for each individual client.” A good banker will first want to get to know your business, your leadership and your goals, says Moyer. “This consultation allows us to present financial solutions that add efficiency and value to your business.”

Discussing your current systems and future goals with your banker before making decisions will help them recommend products that streamline deposits, payments and day-to-day cash flow.
This saves time, improves the accuracy of your records and helps regulate the budget, according to Moyer. “We want to give clients control over their success,” he says. “Sometimes this is as simple as converting a manual process to a system that does it automatically.”

For example, PosPay is a service that authenticates payments and validates vendors against your approved list. Not only does this make the business more efficient, it reduces the risk of losses due to fraud, Moyer explains. Nearly as important as having the right product is having a stellar treasury support team backing you up. Find a bank that provides on-site installation and training to ensure everything is set-up correctly and is available to answer questions, according to RCB Bank Treasury Support Specialist Brianna Davenport. “We want to make our customers’ lives easier, not more complicated,” she says.

A good treasury support team works in tandem with the business sales representative to ensure everything runs smooth. They also work with the business owner to help them maximize their new service. “We work closely with our sales team,” notes Davenport. “We talk with customers about the technical side and help them understand the product better.”
She adds, “We want our business customers to know they have a relationship with a whole team, not just an individual.”

When choosing a bank to partner your business with, there is more than just comparing the cost of services. Relationships, tailored financial solutions and great support services should be at the top of your list.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. See a business representative for specific questions regarding product details, qualifications, fees and restrictions for your personal situation. Call us at 855-BANK-RCB, Member FDIC. RCB Bank NMLS #798151.