0% Mortgages Returning: Why This is a Risky Way to Buy a Home

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The allure of a 0% mortgage can be tempting, especially in a market where every penny counts. However, before jumping into what seems like a dream deal, it’s crucial to understand why this type of financing can be a very risky way to buy a home. At First Financial, we want to ensure that you make informed decisions about what is more than likely the biggest purchase you’ll ever make – your home.

The Hidden Pitfalls of 0% Mortgages

While the idea of a 0% mortgage might sound appealing, it’s important to recognize the potential downside. One major issue is that a 0% offer may come with strict terms that lead to unexpected costs. For example – missing just one monthly payment could result in a sudden increase in your interest rate, along with additional fees and penalties.

Moreover, 0% mortgages can encourage you to buy a home you may not be able to afford in the long run. Similar to buy now, pay later deals – you may be tempted into making a significant financial commitment without considering the long-term implications. This can be particularly risky if your financial situation changes or if the housing market fluctuates.

The Return of a Risky Financial Tool

The reintroduction of 0% mortgage programs is reminiscent of the risky financial products that contributed to the 2008 financial crisis. Zero percent mortgages typically allow first-time homebuyers to secure a purchase with no money down, which becomes an attractive option for those without sufficient savings for a down payment.

Such mortgage offers often include hidden catches. For instance, many of these deals require you to borrow a small percentage of the home’s value as an interest-free loan, which needs to be paid back in full when you sell the home, pay off the mortgage, or refinance. This could pose a significant financial burden if your home’s value doesn’t increase as expected or if you face unforeseen financial challenges. As we have seen before, the housing market does not always go up. If your gamble doesn’t pay off, you’ll end up owing more than the home is worth, and if you have to sell your home due to financial hardship – you’ll owe that initial loan in a time when you need money the most.

Avoiding “Too Good To Be True” Offers

It’s crucial to remember that if something sounds too good to be true, it probably is. 0% mortgages may seem like a great opportunity, but the risks often outweigh the benefits. Instead of falling for this type of home loan offer, consider seeking advice from trusted mortgage experts.

At First Financial, we offer video chats and phone calls with our mortgage experts – with no commitment required. You can also sign up for our homebuying text alerts to stay informed about mortgage rate changes as soon as they happen.* Our team is here to help you make the best financial decisions for your future.

Don’t Navigate Home Buying Alone

While 0% mortgages might seem like an easy way to buy a home, they come with significant risks that can jeopardize your financial stability. By understanding these pitfalls and seeking expert advice, you can make more informed decisions regarding mortgage financing.

For more personalized assistance and tailored solutions call 732.312.1500, visit a branch, or explore our services online.

*The Text Message Signup box must be checked in order to receive text messages. Standard text messaging and data rates may apply.

8 Tips for Planning a Budget-Friendly Vacation

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It’s summer and vacations are a wonderful way to create lasting memories with your family, but they often come with a hefty price tag. At First Financial, we understand the importance of balancing fun and finances. Here are some practical tips to help you plan a memorable vacation without breaking the bank.

1. Set a Realistic Budget

Before you start planning your vacation, it’s essential to determine your overall budget. A good rule of thumb is to follow the 50/30/20 rule: allocate 50% of your income to fixed costs, 30% to discretionary spending (which includes your vacation), and 20% to savings. This approach helps you identify how much you can afford to spend on your trip. Next, outline all vacation-related expenses including travel costs, accommodations, food, activities, and souvenirs. This will give you a clear picture of the total trip cost and how it aligns with your budget. Don’t forget to set aside funds for unexpected expenses!

2. Plan and Book in Advance

Booking your travel and accommodations in advance can save you a significant amount of money. Airlines and hotels often offer early-bird discounts. According to Hopper, airfare prices tend to rise as the travel date approaches – so it’s best to book your tickets early to secure lower rates. Additionally, consider traveling during the off-season or mid-week to take advantage of cheaper rates.

3. Use Credit Card Rewards

One of the best ways to save on vacation costs is by utilizing credit card rewards. First Financial’s Visa Cash Plus Credit Card, linked to the uChoose rewards program – allows you to earn points on everyday purchases that can be redeemed for travel expenses like flights, hotels, and rental cars.* Make sure to check your rewards points and use them strategically to offset vacation costs.

4. Choose Affordable Accommodations

Instead of staying at expensive hotels, consider more affordable options like rental houses, Airbnb, or even camping. Traveling with friends or family and sharing the cost of accommodations can also reduce expenses. If you prefer hotels, look for deals on third-party travel sites or book directly with the hotel to take advantage of any special offers.

5. Save on Food and Drinks

Eating out for every meal can quickly add up. Save money by bringing food, groceries, and drinks if possible, especially for breakfast and snacks. If you’re flying, consider stopping at a local grocery store once you arrive. Cooking some of your meals can be a fun way to spend time with those you’re traveling with too. When dining out, be aware of prices before ordering and research restaurants and menus beforehand.

6. Plan Budget-Friendly Activities

Look for free or low-cost activities at your destination. Many cities offer free museums, parks, and public attractions. Hiking, beach days, and exploring local landmarks are great ways to enjoy your vacation without spending much. Research which activities are available in advance and prioritize those that fit your budget. Facebook events and town/city websites are great places to find lists of free and affordable upcoming local events.

7. Manage Souvenir Spending

Souvenirs can be a fun part of your vacation, but can also lead to overspending. Set a strict budget for souvenirs and consider using cash to avoid charging them to your credit card. Limit everyone to one souvenir each (and think about – do you really need to buy any souvenirs at all?) and before purchasing – make it a point to think about whether it is something the recipient will use and cherish, or if it will end up gathering dust on a shelf.

8. Consider Travel Agents

If planning a vacation feels overwhelming, consider using a travel agent. They often have access to exclusive deals and can help you stay within your budget. Provide them with a clear budget, and they can plan a trip that meets your needs without the stress of overspending. Often, travel agents do not charge you anything for their services as they are compensated by the companies they book with.

A budget-friendly vacation is achievable with careful planning and smart spending. By following these simple tips, you can enjoy a memorable vacation without financial strain. Start planning your next getaway with this advice in mind and make the most of your time away without breaking the bank.

For more personalized assistance and tailored solutions call 732.312.1500, visit a branch, or explore our services online.

*APR is 18%, when you open your account based on your credit worthiness. This APR is for purchases and will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fees. Other fees that apply: Balance Transfer and Cash Advance Fees of 3% or $10, whichever is greater; Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa® Credit Card and is available to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties. uChoose Rewards is a registered trademark of Fiserv Inc. Login to uChoose Rewards through Online Banking, by clicking on your Cash Plus Credit Card account to view current offers.

Save Money on Your Water Bill and Other Utilities This Summer

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Summer brings longer days, warmer weather, and often higher utility bills. With the increased use of water, air conditioning, and overall energy consumption – managing these costs is crucial. First Financial is dedicated to helping you enjoy a cost-effective and comfortable summer. Here are some practical tips to save on your water bill and other utilities this season.

Understanding Summer Utility Costs

Summer utility bills can spike due to increased water usage for gardening, lawn upkeep, washing cars, outdoor activities, frequent showers, and more. Similarly, electric bills rise with the use of air conditioning. By making a few adjustments, you can keep these expenses in check.

Water Saving Tips

  1. Check for Leaks Regularly: Even a small leak can waste significant amounts of water. Regularly check your faucets, toilets, and hoses for leaks and repair them promptly.
  2. Water Wisely: Water your lawn early in the morning or late in the evening to reduce evaporation. Consider using a soaker hose or drip irrigation system, which delivers water directly to the roots, minimizing waste.
  3. Install Water Efficient Fixtures: When it’s time to replace old, inefficient fixtures – opt for water saving alternatives. Low flow toilets, aerated faucets, and high efficiency showerheads can reduce water usage without sacrificing performance. Look for fixtures with the WaterSense label, indicating they meet EPA water efficiency standards.
  4. Use Mulch: Mulching around plants retains moisture, reduces the need for frequent watering, and helps maintain soil temperature.
  5. Don’t Pre-rinse: Instead of pre-rinsing your dishes before putting them in the dishwasher, scrape or wipe them into the trash. Modern dishwashers are designed to handle dirty dishes without the need for excessive water use. Ensure your dishwasher is fully loaded before running it to maximize efficiency. The same goes for your summer laundry – there isn’t really a need to pre-soak your clothing before a regular washing machine cycle.

Energy Saving Tips

  1. Optimize Air Conditioning:
  • Use a Programmable Thermostat: These devices can automatically adjust the temperature based on your schedule, reducing energy use when you’re not home.
  • Clean and Replace Filters: Dirty filters reduce efficiency. Regularly clean or replace them to keep your system running smoothly.
  1. Use Fans:
  • Ceiling Fans: Run ceiling fans counterclockwise to create a cooling breeze, which can make you feel cooler without lowering the thermostat.
  • Portable Fans: Place portable fans strategically to enhance airflow and reduce the need for air conditioning.
  1. Block the Heat:
  • Close Blinds and Curtains: During the hottest parts of the day, close blinds and curtains to block out the sun’s heat.

Long-Term Solutions

  1. Upgrade to Energy Efficient Appliances: Consider replacing old appliances with energy efficient models, which use less water and electricity.
  2. Improve Home Insulation: Proper insulation keeps your home cooler in the summer and warmer in the winter, reducing the need for heating and cooling.
  3. Install Solar Panels: While it is an upfront investment, solar panels can significantly reduce your energy bills and even allow you to sell excess power back to the grid.

Financial Assistance for Utilities

Many states including New Jersey, offer programs to help lower income households with utility costs. Check with local government or your utility provider for available assistance programs.

By implementing these summer utility savings tips, you can enjoy a comfortable and budget-friendly season. Remember, small changes can lead to significant savings.

For more personalized assistance and tailored solutions call 732.312.1500, visit a branch, or explore our services online.

Managing a Budget During Retirement

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Very few people can retire without the stress of worrying about money. If you’re like most people, you’ll face a critical task when you reach retirement to make sure that your assets are able to support you through your lifetime.

Cash flow is king here. Quite simply, you must have enough income to pay for your living expenses. This is no easy task, especially as people are living longer today than ever before.

To help keep you on track and get you to a positive cash flow, there are a few key steps to keep in mind.

First, make a plan. You want to get a clear picture of your financial situation, which includes your projected income and expenses. Start by creating a detailed net worth statement, which will give you a comprehensive overview of your assets, debt, and cash on hand.

Next, assemble an accurate budget that itemizes your income and expenses. If you anticipate any major lifestyle changes after retirement, make these notations. Include your anticipated income during retirement, such as Social Security, pension, and other income streams. Include all of your expenses, prorating them on a monthly basis. When you finish creating your statement, look for any cash flow issues that might arise, and then find areas that will help you improve your income/expense balance.

Revisit your planning tool regularly and readjust the figures if your actual income and expenses change. As you monitor your finances, there are several items that could impact your cash flow in profound ways, including interest rates, tax rates, healthcare costs, and life events. Continually assess and revise your plan as necessary to account for their impact.

By developing and monitoring a budget during retirement, you minimize the possibility of cash flow issues that could otherwise constrain your lifestyle expectations.

For help in planning carefully, look to your financial professional for assistance.

Contact First Financial’s Investment & Retirement Center by calling 732.312.1534 to speak with professionals who can help steer your finances in the right direction.  You can also email mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal.

This material was prepared by LPL Financial, LLC

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Kickstart Your Child’s Financial Future: Essential Tips for Parents

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There’s no better time than now to start teaching kids about financial responsibility. At First Financial, we are committed to nurturing financial literacy and growth from a young age. Here are some practical tips to help your children develop strong financial habits that will benefit them throughout their lives.

1. Start by Including Them in the Conversation

You may not think to discuss money and finances with your children, but opening up these conversations early can help them grasp the importance of financial literacy and health. Start by teaching them the value of currency by having them earn money through simple tasks. Set savings goals and when they’ve reached a goal, discuss whether to spend the money earned on something they want now or to save it for the future. Pose the discussion around wants and needs and let your kids think through what is more important. This simple practice can instill lasting financial insights and habits. As your children get older, bring new topics into the conversation such as large purchases like cars, bills and expenses, as well as credit card use and debt. The more you discuss with them, the more prepared they will be for the financial realities to come.

2. Open a Savings Account and Encourage Financial Goals

Opening a savings account provides a safe place for your child to store their money, and helps them learn about interest and savings growth from a young age. For a great start, consider our First Step Kids Savings Account designed for Monmouth and Ocean County NJ children up to 18 years old, with no minimum balance requirements or fees and an opening deposit savings match of up to $25.* Once you’ve opened a savings account, set savings goals that can be tied to something your child can look forward to – a new toy, a special outing, or future education costs. Creating a visual savings chart can make this process engaging, and it’s also a good idea to plan monthly check-ins so your kids can watch the money grow in real-time.

3. Teach Budgeting Basics

Introduce the concept of budgeting by helping your child create a simple budget. This could include tracking their allowance, gift money, and any small earnings from chores or part-time jobs. Come up with some small ‘expenses’ so they can understand cash flow, and how to ensure you always have enough money to cover expenses, add to savings accounts, and have some left for miscellaneous spending and emergencies too. As kids reach their teenage years and beyond, our First Financial Student Checking Account for ages 14 to 23 – can facilitate this process with online banking features and electronic statements to make tracking easy.

4. Reward Academic Achievement

Incorporating financial rewards for academic success can motivate children to excel in their studies while learning the value of hard work. Our Dollars for A’s Program rewards Monmouth and Ocean County kids for getting A’s on their report cards, by depositing $1 for each “A” received into their First Step Kids Account.** These rewards keep kids focused on the importance of education and financial growth, while also ensuring their milestones are acknowledged and celebrated.

5. Make Learning Fun

Turn financial education into an engaging activity through contests and challenges. Every summer, our Reader Rewards Summer Reading Contest encourages kids to read books and earn rewards, making learning about finances more enjoyable. From now until the end of August, First Financial kids can earn $1 per book this summer – up to 10 books!+

First Financial is dedicated to fostering financial literacy and independence in young people. Our children and student accounts offer the perfect blend of education, practicality, and fun to help your kids develop strong financial habits. Start their journey to a secure financial future today! For more personalized assistance and tailored solutions call 732.312.1500, visit a branch, or explore our services online.

*Parent or guardian must bring both the child’s birth certificate and social security card when opening a First Step Kids Account at any branch location. Parent or guardian will be a joint owner and must also bring their identification. A First Financial Membership is open to anyone who lives, works, worships or attends school in Monmouth or Ocean Counties. Must open a new First Step account to receive piggy bank, passbook, and to qualify for initial account opening savings match up to $25. The credit union reserves the right to change or cancel this offer at any time. See credit union for details. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account.

**Available for First Financial members between 1st and 12th grades. Child must be present and a deposit to a First Step Kids Account is required to receive the Dollars for A’s incentive. Offer applies only to report cards for most recent school terms. Qualifying report cards must be submitted within 45 days from the date of issue. No back rewards available for prior semesters or marking periods. Letter grade “A” (or school district’s equivalent) or 90%+. Limit of $10 will be rewarded for A’s per each marking period, not to exceed $40 in Dollars for A’s deposited per school year or calendar year.

+First Financial Kids up to age 18 are eligible to participate in our Summer Reading Contest each July and August. Credit Union membership and First Financial Savings Account are required to participate. Participants will earn $1 per book read, up to 10 books. Each book requires a separate entry form to be filled out online using our electronic entry form. Only completely filled out entry forms will be eligible for reader rewards. Participants will earn 1 entry per book read in our prize drawing of three Barnes & Noble® Gift Cards in the amount of $75, $50, and $25. If the parent/guardian prefers – Reader Rewards can be electronically deposited to the child’s First Financial Savings Account when a confirmation email for each book read (up to 10 books), is received and reviewed by the Marketing Department upon completion of a digital entry form. Reader Rewards can also be redeemed in person in any First Financial branch by displaying the confirmation email(s) to a branch employee on a mobile phone or printed out.​ The 3 prize winners will be drawn at random and will be contacted by the First Financial Marketing Department by September 15th.

First Financial Employee Spotlight: Issa Stephan

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Issa Stephan, the President and CEO of First Financial – has been instrumental in our institution’s growth and success for the past 19 years. In this employee spotlight, we are highlighting his incomparable impact. Issa brings a wealth of experience and leadership to his role, as well as a genuine dedication and care for the credit union’s work and the employees. His commitment to integrity, honesty, and respect has shaped First Financial’s culture, fostering a supportive environment for both the staff and members. Under Issa’s guidance, the credit union continues to leverage all resources to provide personalized service and remains dedicated to the financial well-being of the Monmouth and Ocean County community.

How long have you worked at First Financial? What was your background/work or education experience in your field before you began working at the credit union? I joined First Financial 19 years ago as the 4th President & CEO. I have been involved with credit unions since 1995. Prior to that, I was in the information technology field. I have a Bachelor of Arts Degree in Information Systems with a minor in Finance.

Can you walk us through one of your most important tasks and explain why it’s significant for our members? I oversee all aspects of the credit union’s operations. My focus is to drive the resources of the credit union toward our short and long-term strategic goals. I am also the main point of communication between the board of directors and credit union operations.

What personal values do you bring to your role here at the credit union? How do you see these values reflected in the work of First Financial? I bring integrity, honesty and respect to the credit union culture. These values are crucial to create an environment where the staff can connect with each other and with every member of First Financial in an honest and respectful manner.

How do you personalize your service to meet the diverse needs of our members? We leverage our technologies to understand our members’ needs and provide personal touches to their experience with First Financial.

Can you describe the team you work with and how you collaborate? I have an excellent team at First Financial. My team collaborates and communicates in a positive way to provide all the necessary tools for our staff to deliver superior member service.

What’s the best thing about being part of the team at First Financial? It is the ability to help one member at time – to work toward achieving his/her financial goals.

In your opinion, what sets First Financial apart from other financial institutions? We are local and all of our employees live in our service area. Credit union decisions are made locally since our headquarters is based in Freehold, NJ. We pride ourselves on resolving any issues in a timely and fair manner.

What’s something unique or surprising about you that members or other co-workers might not know? I collect scale diecast model cars. I also enjoy cooking.

What message would you like to share with the members of First Financial? The credit union’s ultimate and most important goal, is to give our members a better future in their financial lives.

If you could give one piece of financial advice to our members, what would it be? Pay yourself first through a savings account supported by an achievable budget.

Issa’s dedication and leadership continue to propel First Financial forward, ensuring it remains a pillar of support for its members and the local community. His strategic vision and clear communication help the credit union provide exceptional service and build a brighter financial future for our members. We are proud to have Issa behind the wheel, guiding and steering us toward continued success and growth. Visit our website to discover the First Financial difference.

Want to join the team at First Financial? Check out our careers webpage and apply online for current employment opportunities.