Individual Retirement Accounts

<p>If you have extra money in your budget, you might be wondering if it&rsquo;s a good idea to pay off your auto loan early. While doing so can reduce the amount of interest you pay and free up room in your monthly budget, it&rsquo;s important to carefully weigh the potential benefits and downsides before deciding.</p><p>If you&rsquo;re considering it, here are the pros, cons, and smart strategies to help you decide whether an early payoff aligns with your financial goals.</p><img alt="" src="/images/default-source/news-images/6-2025-early-auto-payoff-blog-graphic.png?sfvrsn=3d50836f_1" sf-size="100" /><h3>THE PROS: WHY EARLY PAYOFF MIGHT BE A GOOD CHOICE</h3><h4>Save on interest:</h4><p style="margin-left:30px;">The longer you take to pay off your car, the more you&rsquo;ll pay in interest. Paying it off early can reduce the total cost of the loan, especially if you got a higher interest rate when you bought the car.</p><h4>Free up your monthly budget:</h4><p style="margin-left:30px;">Once the loan is paid off, so is that monthly car payment. You can redirect that extra money toward other financial goals, like building an emergency fund or paying down other debts.</p><h4>Gain full ownership sooner:</h4><p style="margin-left:30px;">Until your auto loan is fully paid off, the lender technically owns the vehicle and holds the title. By paying off your loan early, you gain full ownership sooner and receive the title in your name.</p><h4>Avoid owing more than your car is worth:&nbsp;</h4><p style="margin-left:30px;">Another important factor to consider is the risk of becoming upside down on your car loan&mdash;owing more than the vehicle is worth. This happens when a car depreciates faster than the loan balance decreases, often due to long loan terms, low down payments, or inflated prices. For example, if your car is worth $17,000 but you owe $20,000, you're upside down. Paying off your loan early helps build equity faster and reduces this risk.</p><h3>THE CONS: WHY EARLY PAYOFF ISN&rsquo;T ALWAYS THE BEST OPTION</h3><h4>Prepayment penalties:</h4><p style="margin-left:30px;">Some lenders may charge a fee if you pay off a loan early. Check your loan terms and conditions. If there's a prepayment penalty it could cancel out the savings on interest. <strong>At Metro, we don&rsquo;t charge prepayment penalties, so you can pay off your loan whenever you're ready, without worrying about additional fees.</strong></p><h4>Temporarily lower your credit score:</h4><p style="margin-left:30px;">Paying off your auto loan early can slightly lower your credit score, but the impact is usually minor and temporary. This happens because it ends a positive payment history and reduces your credit mix. Additionally, paying off early can limit the full credit building potential of the loan, as it will only report for the months the loan is active, rather than the full term. However, if you manage other credit accounts well and keep your overall debt low, your score should recover and may even improve over time.</p><p style="margin-left:30px;">To help you stay informed about your credit, we update your FICO&reg; Score quarterly in <a target="_blank" href="/services/online-banking">online banking</a> under the Tools section. If you want to understand how credit scores work and learn strategies to improve yours, check out our <a target="_blank" href="/resources/blog/metro-blog/2024/09/03/credit-scores-whats-good-average-and-bad">recent blog</a>.</p><h3>STRATEGIES FOR PAYING OFF YOUR AUTO LOAN EARLY</h3><p>If you&rsquo;ve weighed the pros and cons of paying off a car loan early and decided it&rsquo;s the best choice for you, here are some strategies to consider:&nbsp;</p><h4>Round up your payments:&nbsp;</h4><p style="margin-left:30px;">If your payment is $285 a month, try rounding it up to $300 or $315. That small extra amount adds up over time.</p><h4>Make biweekly payments:</h4><p style="margin-left:30px;">Instead of paying monthly, split your monthly auto payment in half and pay that amount every two weeks. Since there are 52 weeks in a year, this method results in 26 half-payments which equals 13 full payments instead of 12. This one extra payment each year can reduce the total interest paid and shorten your loan term, often by several years.&nbsp;</p><h4>Make a lump sum payment:</h4><p style="margin-left:30px;">If you can afford it, paying off your auto loan in full or making a substantial partial payment reduces your interest over time. Always confirm the accurate payoff amount with your lender, including the balance, interest, and fees. When making a partial payment, specify that the extra amount goes toward the principal.</p><h4>Refinance your current loan:</h4><p style="margin-left:30px;"><a target="_blank" href="/loans/auto-loans">Refinancing</a> your auto loan can be a smart strategy if your credit has improved, or interest rates have dropped since you took out your original loan. You might also consider refinancing to a shorter loan term, which can help you become debt-free sooner and pay less overall. Just be sure to review any fees or terms associated with refinancing to ensure the total cost still benefits you.</p><h3>IS PAYING OFF YOUR AUTO LOAN EARLY THE BEST OPTION FOR YOU?</h3><p>Paying off a car loan early is appealing for many reasons, but it&rsquo;s not always the best financial move for everyone. Consider your overall financial goals, loan terms, and weigh the pros and cons. Think about how else you might use that money, and determine which payoff option works best for you. <a target="_blank" href="/about-us/contact-us">Contact us</a> today or visit your nearest branch, and we&rsquo;ll help you explore your options.</p><div><br /></div>

<p>A big benefit of homeownership is the ability to build equity (the difference between your home&rsquo;s value and the balance you owe on your mortgage). As you pay down your mortgage or the value of your home increases, that equity grows. Once you&rsquo;ve built enough, you may be able to borrow against it through a home equity loan or <a target="_blank" href="/loans/heloc">home equity line of credit (HELOC)</a>.&nbsp;</p><p>While the qualifications for both are similar, the key difference is how the funds are accessed. A home equity loan gives you a one-time lump sum, typically with a fixed repayment schedule. A HELOC, on the other hand, works more like a credit card with a revolving line of credit you can draw from as needed. We offer <a target="_blank" href="/resources/blog/metro-blog/2025/03/10/fixed-or-variable-rate-heloc--which-one-suits-your-needs">both fixed-rate and variable-rate HELOCs</a>, giving you the flexibility to choose what fits your financial goals.</p><p>Here&rsquo;s what you need to know about qualifying for a HELOC in 2025.</p><img src="/images/default-source/blog-article-images/heloc-qualifications-post-image.png?sfvrsn=2f2a9ded_1" sf-size="100" alt="" /><h3>What is a Home Equity Loan?</h3><p>A home equity loan allows you to borrow money against the equity you&rsquo;ve built &mdash; the difference between your home&rsquo;s current value and what you still owe on your mortgage and any other liens.</p><p>For example, if your home is worth $250,000 and you owe $150,000, you might have up to $100,000 in equity. You can use that equity to borrow money for things like home renovations, a dream wedding, debt consolidation or other big expenses, typically with a lower interest rate than credit cards or personal loans.</p><h3>What is the Difference Between a Home Equity Loan and a HELOC?</h3><h4>Home Equity Loan</h4><p style="margin-left:30px;">Sometimes referred to as a second mortgage, this type of loan gives you the money all at once. It typically comes with a fixed interest rate and a structured repayment plan at regular intervals over a set period.&nbsp;</p><h4>HELOC</h4><p style="margin-left:30px;">A home equity line of credit allows you to borrow as needed, up to a set limit. You can tap into the line multiple times during the draw period, only paying interest on what you use.</p><h3>FIXED VS. VARIABLE RATE HELOC: WHAT IS THE DIFFERENCE?</h3><h4>What is a Fixed Rate HELOC?</h4><p style="margin-left:30px;">With this option, you lock in a fixed interest rate for the duration of your credit line. Even though your payments may vary based on how much you borrow, the interest rate stays the same, offering you predictability and stability. This means you can borrow funds as needed at the same fixed rate throughout the draw period.</p><h4>What is a Variable Rate HELOC?</h4><p style="margin-left:30px;">A variable rate HELOC doesn&rsquo;t lock in your rate. Instead, it fluctuates with the market conditions. Metro&rsquo;s variable rate HELOC has a 12-month introductory rate, after which the rate becomes variable. This option may be ideal if you expect to pay off the balance quickly or are comfortable with rate changes.</p><h3>REQUIREMENTS FOR A HOME EQUITY LINE OF CREDIT (HELOC)</h3><h4>Enough Equity in Your Home</h4><p style="margin-left:30px;">The more equity you have, the more you may be eligible to borrow. HELOC loans are available up to 90% of the appraised value.</p><h4>Good Credit Score</h4><p style="margin-left:30px;">A good credit score shows that you&rsquo;ve been responsible with credit in the past. Typically, a score of mid 600s is the minimum, but the better your score, the lower interest rates and better terms.</p><p style="margin-left:30px;">We share updated FICO&reg; Scores with members quarterly via online banking under the tools section. Checking your FICO&reg; Score regularly is a smart way to stay on top of your credit. It helps you identify any changes and make better financial decisions to improve your score if needed. If you are not sure what a good credit score is, <a href="/resources/blog/metro-blog/2024/09/03/credit-scores-whats-good-average-and-bad" target="_blank">check out our blog post</a> to learn what&rsquo;s considered good, average, or bad.</p><h4>Proof of Income</h4><p>You&rsquo;ll need to show that you can afford to repay the loan. Lenders will ask for your income, job history, and may want to see recent pay stubs, tax returns, or other documentation to prove that you have consistent income.</p><h4>Low Debt-to-Income (DTI) Ratio</h4><p style="margin-left:30px;">Lenders will also consider your debt-to-income (DTI) ratio. This measures how much of your monthly income goes toward debt payments. To calculate your DTI ratio, add up the monthly payments on the loans and expenses you have, then divide them by your monthly income before taxes.</p><p style="margin-left:30px;">A lower DTI ratio shows lenders that you&rsquo;re not overextended with your debt. While 36% is considered ideal, anything under 43% is generally viewed as good. In some cases, you may even qualify with a higher DTI, depending on other factors.</p><h4>Proof of homeowners insurance</h4><p style="margin-left:30px;">To qualify for a home equity loan, you must provide proof of your current homeowners insurance policy. Homeowners insurance protects you against an unexpected financial loss and it also protects your lender&rsquo;s investment in case of a disaster.&nbsp;</p><h4>Home appraisal&nbsp; &nbsp; &nbsp;</h4><p style="margin-left:30px;">Home equity loans usually require an appraisal to determine the current market value of your home and how much equity you have to borrow from.</p><hr /><h3>WHY CHOOSE METRO CREDIT UNION FOR YOUR HOME EQUITY LINE OF CREDIT?</h3><p>Whether you're interested in a lump sum loan or a flexible way to access funds for a home renovation, debt consolidation, or unexpected expenses, a HELOC from Metro Credit Union offers the support and flexibility you need.</p><p>As one of Omaha&rsquo;s trusted HELOC lenders, we offer:</p><ul><li>Fixed and variable rate options</li><li>Competitive interest rates</li><li>Options for up to 90% of the equity of your home</li><li>Fast approvals</li><li>Personalized member service</li></ul><p>Once you&rsquo;ve reviewed the requirements and believe you may be eligible, gather your documents and apply online. Our mortgage team will walk you through your options, review your home&rsquo;s value, and help you determine what makes sense for your situation.</p><h4>Start making the most of your home&rsquo;s equity today. <a href="/loans/heloc" target="_blank">Contact Metro Credit Union today!</a></h4><div><br /></div><p>&nbsp;</p>

<p>As AI technology advances, so do the methods fraudsters use to exploit it. Artificial Intelligence (AI) refers to a machine's ability to imitate human intelligence, using advanced algorithms and machine learning to mimic human thinking and decision-making. Scammers are leveraging AI to manipulate data, bypass security measures, and target financial institutions and their customers.&nbsp;</p><p>Below are some of the most concerning ways AI is used in bank fraud, along with tips to protect yourself.</p><img src="/images/default-source/blog-article-images/ai-scam-blog.png?sfvrsn=c78e5ce_1" sf-size="100" alt="" /><h3>Creating Fake Identities</h3><p>AI can combine real and fake data to build convincing identities, pulling information from online sources to pass identity verification systems. These fake profiles are often used to open fraudulent accounts or take over existing ones.</p><h4 style="margin-left:30px;">Protection Tip:</h4><p style="margin-left:30px;">Double-check suspicious accounts or transactions. Use multi-factor authentication (MFA) for your Metro accounts to increase security.</p><h3>Copying Important Documents</h3><p>AI can generate realistic forgeries of passports, driver&rsquo;s licenses, and other identification documents, enabling fraudsters to skip identity verification processes and access accounts.</p><h4 style="margin-left:30px;">Protection Tip:</h4><p style="margin-left:30px;">Always keep your personal documents secure and be cautious when sharing them online. If you suspect your information has been compromised, immediately <a href="/about-us/contact-us" target="_blank">contact Metro</a> to lock accounts and report the issue.</p><h3>Phishing Scams</h3><p>AI can create convincing phishing emails and messages, automating and scaling attacks to make them more targeted. Fraudsters mimic a financial institution&rsquo;s style to create emails or texts that appear authentic, often containing links that steal personal information.</p><h4 style="margin-left:30px;">Protection Tip:</h4><p style="margin-left:30px;">Be cautious with unsolicited emails or texts. Verify requests for personal or financial details, check the sender&rsquo;s address, and avoid clicking links. Instead, access Metro&rsquo;s website or <a href="/services/online-banking" target="_blank">mobile app</a> directly.</p><p style="margin-left:30px;"><strong>Metro Credit Union will never ask you to click a link via text!</strong></p><h3>Voice Cloning</h3><p>AI can clone voices using a few seconds of audio, enabling fraudsters to impersonate family members or trusted sources. Scammers may claim to be loved ones in distress, urging you to transfer money immediately.</p><h4 style="margin-left:30px;">Protection Tip:</h4><p style="margin-left:30px;">Never send money based on a phone call alone. Verify the caller&rsquo;s identity by contacting them directly or consulting other family members.</p><p style="margin-left:30px;"><strong>Metro Credit Union will never call or text you to ask for your sensitive information or have you click a link in a text message.</strong></p><h3>Deepfake Videos</h3><p>Deepfake videos, created with AI, can impersonate family, friends or trusted sources to manipulate you into revealing personal information or making financial transactions, making scams appear legitimate.</p><h4 style="margin-left:30px;">Protection Tip:</h4><p style="margin-left:30px;">Be skeptical of video requests for money or sensitive information. Verify the source and seek a second opinion if something seems unusual.</p><h3>Fraud Detection Bypasses</h3><p>Advanced AI systems can analyze security processes to make fraudulent transactions appear legitimate, bypassing fraud detection measures.</p><h4 style="margin-left:30px;">Protection Tip:</h4><p style="margin-left:30px;">Regularly monitor account statements for unusual transactions. Set up fraud alerts on <a href="/services/online-banking" target="_blank">online banking</a> to receive instant notifications of suspicious activity.</p><h3>Fake Websites and Apps</h3><p>Scammers use AI to create fake websites and mobile apps that mimic financial institution interfaces, tricking customers into sharing sensitive information.</p><h4 style="margin-left:30px;">Protection Tip:</h4><p style="margin-left:30px;">Check URLs for &ldquo;https&rdquo; and avoid downloading apps from untrusted sources. Visit our website for more information about our <a href="/services/online-banking" target="_blank">mobile app</a>.</p><hr /><h3>HOW TO REPORT FRAUD</h3><p>If you believe you&rsquo;ve been a victim of fraud or have unrecognized transactions on your Metro Credit Union account, contact us immediately:</p><p style="margin-left:30px;"><strong>By Phone: </strong>402.551.3052</p><p style="margin-left:30px;"><strong>In Person:</strong> Visit one of our branches</p><p style="margin-left:30px;"><strong>Online: </strong>Use the secure Message Center in the Metro Credit Union app or website</p><p>Visit our <a href="/services/fraud-protection" target="_blank">fraud protection page</a> regularly for current scams facing consumers, and insights on how to protect your identity, personal information, your loved ones, and your money.</p><div><br /></div>