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.

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

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/

There are many reasons refinancing your vehicle loan is a good idea. See if any of these apply to you.

If you didn’t shop around originally

If you didn’t shop around when you purchased your vehicle, you may not have gotten the best rate. Lowering your rate could lower your monthly payment and could reduce the amount you pay over the life of the loan.

If you find a better rate than your current rate

As previously stated, getting a lower rate could lead to a lower monthly payment and could significantly reduce the amount you pay over the life of your loan. And depending on how much lower your new rate is, it could reduce the number of payments you have remaining if you decide to keep paying the same amount you’re currently paying.

If your credit score improved

If you’ve been making your loan payments on time for several months, it’s very likely that your credit score has improved. Refinancing when you have a better credit score can cut the interest rates for which you qualify.

If your financial situation improved

If your financial situation improves, you may qualify for a lower rate than what you’re currently paying. If you recently got a raise, paid off another debt or inherited some money, that may mean you qualify for a lower loan rate.

Refinancing your vehicle loan could save you money in the long run. But do your homework beforehand to make sure that refinancing is right for your financial situation. Take into consideration and research to see if there are any fees involved with paying off your current loan early.

And if you have any questions, talk to a banker to see if refinancing your vehicle loan is the right option for you.

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. For specific questions regarding your personal lending needs, please call RCB Bank at 855-BANK-RCB. With approved credit. Some restrictions apply. RCB Bank, Member FDIC.

Source:

https://www.bankrate.com/loans/auto-loans/when-to-refinance-a-car-loan/

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.

By Brent Carroll, RCB Bank Lending

New cars can quickly depreciate in value causing your auto insurance to pay less than what you owe on your car loan. What happens when an accident totals your car? Who pays the difference between the insurance settlement and your outstanding loan balance? You do. Or, maybe not.

Get$Fit Tip: Protect your assets.

It may be worth buying Guaranteed Asset Protection (GAP) coverage to help you avoid the risk of negative equity and having to continue making principal payments after a total loss. Depending on your loan term, GAP adds on average an estimated $7-$11¹ to your monthly loan payment, but it potentially could save you thousands of dollars in the event of loss.

When GAP may benefit you:

• You make a small or no down payment on a new car
• You agree to a loan term longer than 48 months

Talk to a lender for details to see if GAP is right for you.

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

Invest in yourself. RCBbank.com/GetFit

¹GAP insurance costs varies between lenders and loan terms. See your lender for specific questions regarding your personal loan qualifications and overall costs. ²GAP Insurance covers the residual value of the loan as of the date of loss. Ancillary products can be purchased at an additional cost, which vary based on loan terms. Qualifications and restrictions apply. Above example is for generic illustration purposes only, based on 700 credit score. Does not factor in down payments, additional fees or other costs. Subject to credit approval. Rates are accurate as of June 15, 2018, and subject to change without notice. Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. Member FDIC and Equal Housing Lender, RCB Bank NMLS #798151.

The Problem

Buying a car is a major purchase. Budgets are tight. It’s tempting to accept financing based on the lowest monthly payment, but this may prove a costly mistake. Here is why.

Lower monthly payments often mean longer loan terms and higher interest rates. You may be able to obtain 84-month term (7 year) financing and a budget-friendly monthly payment, but you’ll pay more over the life of the loan. You also risk becoming upside down on your loan, owing more money for your car than it is worth.

Don’t be payment-driven. Save up as much as you can and negotiate the sales price down, not the monthly payment.

The Solution

Here are additional tips to help you keep your car buying costs as low as possible.

1. Know your credit score. More importantly, know the details in your report. Your credit score will determine which loan you will qualify for and the interest rate you’ll pay. Start reducing your current debt now to improve your score and financing options.
2. Get pre-approved. Know the exact amount you can spend before you start looking (and stay under that number). Start with your financial institution and shop around. A banker can also access car evaluations to improve your bargaining power with the dealership.
3. Focus on price. Know what the car is worth, not what the dealer tells you it is worth. Do your homework. Check NADA guides. Shop online. Compare dealers. View the car evaluation with your banker. Then go to the dealership and negotiate a fair purchase price for the car, not your loan payment.
4. Decide needs versus wants. You may want a newer model vehicle but do you want — can you honestly afford — the higher purchase price and possible higher interest rate? It’s a matter of choice. I encourage you to save up as much money as possible before you shop so you have more choices.  With a higher down payment, you can borrow less money. You can choose a higher monthly payment with a lower term, which will save you more money over the life of the loan.

Avoid the payment-driven temptation and start saving up now for your next vehicle. In the meantime, explore your financing options and ask your banker what you can do to improve your credit score.

Final piece of advice: Don’t be afraid to walk off the lot.

Don’t rush your decision and accept the first offer. It’s your money and your life. Be good to yourself.

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

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. Member FDIC and Equal Housing Lender, RCB Bank NMLS #798151. Curtis Bales, NMLS #800411.

Buying a car can be intimidating, even if you’ve done it before.  Sales people, negotiations, paperwork  – it can be a whirlwind of emotions. For most people, buying a car is the second largest purchase they will make in their lifetime. A little preparation before you step onto the dealership floor may improve your car buying experience.

Get preapproved.

If you know the financial institution you will be using to finance your next car, get preapproved for a loan so you know your budget upfront. Car shopping is less complicated when you know your maximum purchase price. It’s easy to get blinded by a shiny new car and all the extras only to find it is out of your budget.

When you have your financing approved, you can focus on other aspects, like car reviews and purchase price to ensure you are getting the best deal.

Do your homework.

There are a number of websites to research the dependability and safety of cars. Find out what similar cars are selling for in your area. Then, compare your potential purchase to its value on websites such as Nadaguides.com.

Trade in your car.

If you will be trading in your car, know the payoff amount and make sure the dealer will pay off your loan in full. Research the value of your trade-in to know what you should expect before going into the dealership.

Think through term limits.

Don’t overpay. An important, and often overlooked factor in auto financing, is the loan term. The loan term is the number of months you have to pay off your car. Many dealerships will finance a car for seven or even eight years. This may look good on paper but you must think long term.

Before you sign, ask yourself:

• Will I own this car for seven or eight years?
• Will the car’s value still match my loan payoff?

People forget to ask these questions before they purchase, and some end up upside down in their car. This means their loan payoff is more than the car is worth and they have negative equity.

Watch your overall interest cost. While financing a longer term may allow you to buy a more expensive car at a lower monthly payment, you will also pay more interest on long-term loans. Always compare the potential outcome and consider what is best for your future car buying experiences.

You are the customer.

You decide where to finance your car, not the dealership. While dealerships may have a competitive rate or loan term, ask yourself some questions.

• Does the dealership have my best interest in mind?
• If I have problems with my loan, who will I call for help?
• Does the dealership know me better than my bank?

You hold the cards when it comes to where you finance your vehicle, so do what feels comfortable to you.

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

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. Member FDIC and Equal Housing Lender. RCB Bank NMLS #798151.