POWERLINESA Publication by APCO Employees Credit Union | Powering financial lives. | April 2018 | Issue 162

Buying Your First Home?Your Credit Union Can Make the Process Easier!Plus– Energy Center Branch Opening Soon, and more!

Buying a House is a Big Decision. Here’s How Your Credit Union Can Make it Easier.

APCO Employees Credit Union is committed to helping the next generation buy their first home. Talk is cheap but our actions are paving the way for our young members to live the dream of home ownership. APCO has a mortgage program called the FIRST TIME HOME BUYERS and our mortgage experts are willing and able to guide you through the process for no cost or obligation.

Buying a house is one of the biggest decisions you will ever make, and there are common mistakes that many first-time homeowners regret making. Here’s how you can avoid them.

1. Know Your Housing BudgetAvoid buying a home that is out of your financial comfort zone. After all, you don’t want to wind up being “house poor.” You likely already have a budget and some idea of your expenses for running your current household. Now is the time to review that budget. Some of your expenses are going to increase in a new home - like utilities and insurance. Some other budget items may change, too. Add up all your expenses, but leave out rent or mortgage payments. When you subtract the total of this list from your take-home pay, you will have a good idea of how much you have left for mortgage payments. Use your Credit Union’s mortgage calculator online to calculate mortgage payments based on various available interest rates. Generally, housing costs should be 30% or less of your before-tax income.

2. Do Not Look Outside Your Housing BudgetDon’t even look at houses that fall beyond your budget; it’ll only set you up for disappointment. Even if you manage to buy the home, you’ll find yourself with too much house and too little money. After doing your research, you’ll know how much house you can afford. You can then pinpoint properties in that price range. Most home purchases require compromise. Maybe you’ll decide on a smaller house in a neighborhood with the best schools. If space is your highest priority, though, you might choose a larger house in a less-exclusive neighborhood. Every house has advantages and disadvantages, but keep your search within your financial comfort zone.

3. Do Not Purchase Based on Future ChangesIf you are having trouble finding a house in your price range, consider ways to reduce your current expenses. This will mean having more money available to make a larger monthly mortgage payment. Many people mistakenly assume they will make these changes once they own a house. Ideally, these budget changes should be in place before you buy a house, even if it means delaying the purchase. Give yourself at least six months to see if you can stick to your new budget.

4. Do Not Treat Your Home as an InvestmentFirst-time buyers often anticipate selling their house for a large profit in 5 to 10 years. The last decade has brought major changes to every housing market. While a house in certain areas was almost guaranteed to appreciate in value, that is no longer a sure thing.

For more information about our first time home buyers mortgage program, visit us online at apcocu.org. Program terms and conditions apply.

A quick overview of the program:

The Credit Union understands buying your first home has many challenges. Obtaining the down payment is the biggest challenge but we have loans available at up to 95% of the purchase price. Your Credit Union’s program only requires 5% down which gives you room in your budget to make home improvements, buy furniture, or to otherwise invest your money.

In this program there is no PMI (private mortgage insur-ance). PMI is an insurance product that is paid by the member/borrower that protects the lender/credit union in case there is a default on the loan. There is NO benefit to the member/borrower for this expense. By waiving this requirement it allows for a lower monthly payment.

Typically we can provide you a pre-approval within 48 hours of submission of a completed online application (www.apcocu.org). We recommend that you obtain the pre-approval prior to making any offers on a home. The pre-approval will aid you in your negotiations of your purchase by showing the seller you have funds secured to support your offer.

CURRENT INTEREST RATES*Through March 26, 2018Deposit Accounts APYShare Account 1.26%Certificates 30 Days 1.26%45/60 Days 1.26%91 Days 1.26%182 Days 1.31%366 Days 1.36%18 Months 1.41%24 Months 1.51%30 Months 1.56%36 Months 1.61%37 Months (step up) 1.56%48 Months 1.71%60 Months 1.97%IRA Share 1.76%IRA Certificate Same rates as certificates above with maturities from 182 days to 60 monthsChristmas Club 1.26%Checking .15%(Average daily balance over $2,000) .50%LoansShare Secured (36 months) 2.00%New Car (100% of list)Up to 60 Mo. (finance at least $10,000) 1.90%Up to 72 Mo. (finance at least $20,000) 2.40%Up to 84 Mo. (finance at least $30,000) 3.40%Used Car starting at 2.90%New Boat (90% of purchase price)Starting at 2.75%Used Boat (90% of purchase price)Starting at 3.75%Visa 10.90%Real EstateAdjustable Rate Mortgage5/1 ARM Loan 3.350%7/1 ARM Loan 3.550%$425,000 is max on adjustable rate mortgage.ARM Jumbo Loans available. Call for details.Fixed Rate Mortgage1st Mortgage (7 years) 3.50%1st Mortgage (10 years) 3.60%1st Mortgage (15 years) 3.70%1st Mortgage (20 years) 4.125%1st Mortgage (30 years) 4.250%$425,000 is maximum on fixed rate mortgage Fixed Jumbo Loans available. Call for details.

*Rates subject to change. Please call for a quote. All savings rates quoted as annual percentage rates. A lower credit score may cause a higher loan rate.

FINANCIAL REPORT 2/28/2018 2/28/2017Assets $2,804,169,672 $2,741,066,941 Savings $2,486,485,151 $2,463,587,099Loans $794,854,814 $762,472,571Members 71,665 71,731

William Bass , one of APCO Employees Credit Union’s long time Board members, recently stepped down from active service on the Board of Directors. Mr. Bass has been appointed and will serve as a Director Emeritus.

Mr. Bass has served our Credit Union for 41 years. Words can hardly express the debt of gratitude we owe Mr. Bass. So, all we can say is “Thank You.” Thank you for your vol-unteer spirit. Thank you for your dedicated service. And, thank you for helping build our Credit Union into one of the finest in the nation.

The commitment and service to the Credit Union of Mr. Bass will long be remembered. We wish him the best of everything in the future.

News In BriefRemember, you have until April 17, 2018 to make contributions for the tax year 2017. Opening or adding to your APCO IRA is a great way to take control of your financial future. Call or stop by to talk with one of our IRA experts today.

Stay connected with your Credit Union! Follow us on Facebook (APCOCreditUnion), Twitter (@apcocu) and Instagram (@apcocu). Visit us online at www.apcocu.org.

WE’RE MOVING – SUMMER 2018Your Credit Union’s Inverness Branch is moving to a new location at 3535 Colonnade Parkway Birmingham, AL 35243. We are excited to move into the new Southern Company Energy Center this summer. Stay tuned for moving dates and details.

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LOCATIONSMAIN OFFICE750 17th Street NorthBirmingham, AL 35203(205) 226-68001-800-249-APCO (2726)Chelsea370 Chelsea CrossroadsChelsea, AL 35043Phone: (205) 678-8406Clanton1872 7th Street SouthClanton, AL 35045Phone: (205) 280-0366Corporate Headquarters600 North 18th Street Birmingham, AL 35203 Phone: (205) 257-1592 Dothan2220 Montgomery HighwayDothan, AL 36303Phone: (334) 793-7226Hoover4725 Chace CircleHoover, AL 35244Phone: (205) 823-7403Hueytown2901 Allison-Bonnett DriveHueytown, AL 35023Phone: (205) 257-3905Inverness42 Inverness Center ParkwayBirmingham, AL 35242Phone: (205) 992-5030Jasper706 20th Avenue EastJasper, AL 35501Phone: (205) 221-4238Mobile150 St. Joseph StreetMobile, AL 36602Phone: (251) 694-2383Montgomery244 Dexter AvenueMontgomery, AL 36104Phone: (334) 832-3822Pelham101 Huntley ParkwayPelham, AL 35124Phone: (205) 664-7421Trussville151 Main StreetTrussville, AL 35173Phone: (205) 661-2715Tuscaloosa630 15th StreetTuscaloosa, AL 35401Phone: (205) 345-6550West Mobile6396 Airport BlvdMobile, AL 36608Phone: (251) 434-5634

Federally Insured by NCUAEqual Housing Opportunity Lender

HOLIDAY CLOSINGSMemorial Day, Monday, May 28, 2018Independence Day, Wednesday, July 4, 2018

Board of DirectorsJohn Valekis – ChairmanWendell W. Pate – Vice ChairmanRobert B. Roy – SecretaryMark Wilkinson – TreasurerWilliam M. Bass – DirectorBilly Gober – DirectorMelinda Lopez – DirectorS. A. Marino – DirectorGreg Shipp – Director

President / CEODerrick E. Ragland, Jr.

Supervisory CommitteeCelia Yates – ChairpersonAllison Boone – MemberAnn Wilkinson – Member

Credit CommitteeJim Moore – ChairmanJoe Shannon – SecretaryMelinda Hurd – MemberEd Nesmith – MemberJohn Ohlson – MemberVicki Page – MemberCarlton Stephens – Member

APCO Credit Union Service Charges and Account Maintenance Fees*Cashier’s Checks .................................... $1.00 per checkOfficial Checks ....................................... $1.00 after one free per dayMoney Order ......................................... $1.00 per itemVisa Gift Card ......................................... $3.00 per cardTravel Card Fee ...................................... $7.95 initial fee - reload fee $2.00Service Centers ...................................... $1.00 per transaction after the 8th transactionCollection Item ....................................... $25.00 per itemWire Transfers: Outgoing- Domestic ....................... $15.00 per transfer Outgoing- International ................. $50.00 per transfer Incoming .......................................... $0.00 per transferCoin Deposit ........................................... Coin deposits greater than $150.00 will be charged 5% feeShare Minimum Balance ....................... $3.00 per month if share account balance falls below $25.00Debit Card ATM (non APCO CU)........ $0.75 per transaction after the 6th transactionStop Payment .......................................... $20.00 per requestCounter Checks ...................................... $2.00 for 10 checksCheck Copies ......................................... $1.00 per checkStatement Copy or History Printout ...... $3.00 per copySignature Card Copies ......................... $1.00 per copyAccount Research .................................. $15.00 per hour ( 1 hour minimum)Insufficient Funds Fee (NSF) .................. $20.00 per checkACH (Automated Clearing House) Return Fee ........................................ $20.00 per item Overdraft Fee .................................. $20.00 per itemDebit Card Overdraft Fee ..................... $20.00 per itemCheck Overdraft Fee ............................. $20.00 per checkDeposit Item Return Fee ......................... $5.00 per itemExcessive Share Account Withdrawal Fee ..................................... $1.50 per share withdrawal after the 3rd monthly withdrawalShare Transfer Fee (share to checking) $1.50 per transferOverdraft Transfer Fee .......................... $1.50 per transferPersonal Checks Basic Check Order ... $18.00 single copy checks (120 Checks)Abandoned Account Fee ...................... $3.00 per month*Fees and charges subject to change.