Can you still trust banks while hearing about such cases? The fear of getting in the same situation may make you keep a distance from those institutions but are they really as bad as people say? Why don’t you reflect some time about those situations, think a little, what is the most likely scenario that provoked it? In this article, you will find out why the right question is not if you should trust the banks or an Oregon credit union BUT if you can trust yourself to make the right financial decisions while interacting with a financial institution.
Those that lose their houses to the bank arrived in this situation because they were not able to make the monthly payments for a long period of time. This could happen only if his decision was made under the assumption that he will always be able to pay them. That was the wrong assumption, the reason he made it can be as diverse as those for which he could not. Even then, because he was not able to refinance his debt to reduce the rates showcase the gravity of the situation. In the majority of the cases where people reach this situation happens because of their financial decisions and very rarely because of other factors. The best thing you can do to evade such a situation is to enhance your financial knowledge before borrowing money.
What Factors You Must Consider Before Taking a Loan from the Banks in Portland Oregon?
Before you take a loan from the banks in Portland Oregon https://www.onpointcu.com/ consider the methods through which you can pay it, without the risk of reaching the point of losing the collateral. There are 2 main ways you need to have ready:
- The primary source of money. If you are like most people then you have a job and that is the place from which you get the majority of your income. Because of this, you should only make a loan that you will be able to pay even with a much smaller one. In the case where you lose your current job and you can only find another with a smaller pay, you must be able to make the payments to the bank in time.
- Savings. You never know what may happen with the economy or with your job. So, you should make a savings account in an Oregon credit union with an amount of money equal to three to six months of your salary. Consider this a buffer zone that will keep you floating by offering you the possibility to find another job without being in a rush. This will ensure the payments to the bank are assured and all your family’s expenditures are paid for in this period. This will prevent the possibility of you getting a job that pays much lower than the one you had before.
Why Should You Consider an Oregon Credit Union?
Most of the time you can find the best interest rates at an oregon credit union https://www.onpointcu.com/. This happens mainly because unions are not profit-driven. As a non-profit organization, it can shift the profit margins back towards its members. This advantage is doubled by the fact that it does not need to pay taxes which offers them the possibility to have much better interest rates in comparison with the banks. Although there are rare situations when this is not true so you must first make research your options before deciding.
Because their focus is to help its members, they have many more solutions you can make use of in case you reach a desperate situation and are not able to pay the rates. Some of them are willing to even offer you six months to a year of a buffer zone in which you can stop the payments with the only consequence being the accumulation of the interest rate. Meaning, in the case of a 3.625% interest rate per year for a 30-year mortgage, that a good union has, for a 100000$ mortgage you will pay 3625$ if you use the full buffer zone.
In conclusion, any financial institution can be trusted if it is regulated by the laws, including the banks in portland oregon. The questions you should ask yourself is how much trust can you have in your financial decisions? How much financial knowledge you have? What you should do is accumulate more knowledge because it will help you improve your finances in ways you can’t even imagine.