The big banks and I are getting a divorce and there will be real community property.
When I first got a job teaching three decades ago the teacher union rep to our township credit union told me I should sign up for payroll savings deduction.
“Just $25 bucks a paycheck. That’s about $50 a month. Start now and you won’t even notice it’s gone from your check.”
I followed her advice.
And every year as my pay increased, I would increase the amount of the deduction. Over the years it paid for trips to Europe, repairs on the house or car. Sometimes I had to borrow from the credit union. But it was amazingly easy. Usually it was just a signature secured loan since I was a working teacher and member of the credit union.
I have encouraged new teachers to follow her advice ever since. Join the credit union. Start small.
That’s the deal. The credit union is a cooperative. You join. You’re a member. Nobody makes a profit from this.
I know. That’s crazy. Nobody making a profit. It would make a Wall Street hedge fund manager nuts just thinking about it.
I don’t know why I never refinanced my mortgage through my credit union. I just didn’t.
But last week, after visiting Occupy Wall Street in New York, I called my credit union and asked what it would take to refinance the remaining years of our home mortgage and end our relationship with the commercial bank that owns and services our mortgage now.
Roseanne, who is the real estate person at the CU and has a great friendly voice, said it would be easy. They could cut my interest to fixed at prime, cut a year off what was left on the mortgage and my monthly payment would be the same. I would have to service it myself, meaning I would pay the insurance and property taxes directly. But how hard is that when you have Quicken or some other bill payment software? Easy peasy.
And no big banks. No more blood sucking banksters, making money for doing nothing more than moving paper around.
Plus I will have the knowledge that the money I am paying off my mortgage with is going back in low-interest loans to other teachers
November 5th is Bank Transfer Day.
It won’t change the world. But I will do some good for others, I feel great about screwing a big bank and Anne and I save some money.
A hat trick if there every was one.
Hmm, maybe I’ll refinance on General Strike day. I’m planning to take a personal day, and I was thinking I’d rather have my mortgage be through my credit union. Thanks for getting that thought into my brain. ;^)
I’ve been using credit unions for about 35 years. They’ve been great for financing my home, buying cars, personal lines of credit, credit cards. I’m sure you’ll be happy you made the move.