What Milford, Stratford Homeowners Need To Know About Home Equity Loans

by Paul Mulligan

Even though it might not always feel like it, your home is likely one of the greatest financial assets at your disposal. Of course there is always going to be something to fix. Making your monthly mortgage payments might cause a little anxiety from time to time. But all the energy and money that you invest in your home is helping you build equity that can help you in a time of need.

Home equity loans are a type of loan which allows homeowners to leverage the equity they’ve built over the years as collateral. These loans can be used for a variety of reasons—repairs, home improvements, paying for school, buying a car, another property and even consolidating debt. In an ideal world, you’d be able to address these needs from your own savings when the time came. But this isn’t always the reality. If you’re a homeowner and you’ve got a large expense coming in the near future, a home equity loan may be a viable option.

But before you take action, it is important to learn as much as you can about home equity loans. Read on to see some of the most frequently asked questions that homeowners have regarding home equity loans.

How much can I borrow?

The amount that you can borrow for a home equity loan varies by location and bank. At The Milford Bank, we will provide loans up to $500,000. However, each loan is considered on a case by case basis. Lenders typically will consider your credit history, available equity in your home, your income, and your assets and liabilities.

What are the benefits of a home equity loan?

Home equity loans provide a number of benefits. There are no closing costs associated with procuring them. In addition, home equity loans offer competitive interest rates that can be beneficial for paying down debt you may currently owe at a higher rate. The interest that you pay may even be tax deductible, but you should consult a tax advisor to make that determination.

How long does the loan process take?

Every homeowner has a different set of circumstances. As such, there is no established timetable for how long the process may take. However, once your loan has been approved, many homeowners are able to utilize the funds within a week.

Is there a minimum equity requirement to qualify?

In order to qualify for a home equity loan, you will need to meet some basic requirements. The minimum loan at The Milford Bank is $10,000 for a five-year term. You can review the specific interest rates, terms and repayment tables by clicking here.

Whether you need to replace a furnace or send a child to school, you may be able to utilize the equity you’ve built in your home to meet the ever-changing needs of you and your family. Stop by any office of  The Milford Bank to speak with one of our representatives—and be sure to check out our Learning Center here for more information.

Can Your Business Save with Solar?

by Rebecca Tudor

By now, most Americans understand that making eco-conscious decisions in their day to day lives is an important step to ensure a healthy environment for future generations. Many are making the move into eco-friendly vehicles, installing high-efficiency LED light bulbs and grocery shopping in the organic food section.

But it isn’t consumers alone that can reap the benefits of going green—businesses also have much to gain! If you’re looking for a way to increase your profitability and drum up new sales, integrating green initiatives into your business may be the solution.

Here are three ways that going green can bolster your business.

Save on your utility bills. While every location differs, Solar Nation reports that individuals who install a 5 kilowatt solar system save between $44 and $187 per month on their electric bill. Better yet, that’s before loans, leases or government rebates kick in. Given the extreme heating costs that Connecticut residents face in the winter (not to mention expensive air conditioners during the summer!), installing a solar energy system can help take the stress out of your skyrocketing utilities costs.

Create new revenue streams. Solar energy doesn’t just save money—it can help businesses create entirely new revenue streams as well. While you’ll have to check with your specific electricity supplier, there are a number of ways that Connecticut business owners can leverage solar systems to earn extra money.

Net-metering is a program ideal for businesses that generate more electricity than they use. The surplus that you create from your solar system can be sold back to the electric grid. Similarly, demand response programs are offered by electricity suppliers looking to bolster the grid when they hit peak demand. If you sign up for this program, the utility company will contact you during peak demand and ask that you reduce your own consumption, so needs can then be met in areas lacking for service. If you participate in a demand response program, you will be eligible for compensation based on your provider’s specific policy.

Broaden your brand appeal. Today’s consumers are willing to spend more money to do business with organizations that understand the importance of standing up for a cause—including 70 percent of the up-and-coming millennial generation. Demonstrating your commitment to environmental sustainability will put your brand in the good graces of consumers, helping you broaden your appeal. Better yet, shoppers that come into your store will spend more time looking at your solar panels than your price tags.

Keep your eye on emerging solar technology. Every year, researchers find ways to make deploying a solar energy system more affordable and efficient. That means integrating a solar energy system has never been more financially achievable for local business leaders. Help the environment, and your business, by checking out solar today.

To learn more ways to save your business money, or to look into business loans you might be able to use to invest in solar, stop by any office of The Milford Bank today!

Five New Year’s Resolutions to Improve Your Finances in 2017

by Lynn Viesti Berube

New Year’s Eve is about much more than watching the ball drop in Times Square or popping open a bottle of champagne. It’s about reflecting on the past and looking ahead to the future. This time of reflection leads millions of Americans every year to make resolutions about how they can improve themselves. If you’re looking for a way to improve yourself in 2017, why not take a look at your finances? Here are five resolutions you can make that will drastically improve your finances and quality of life in the year to come.

Focus on your physical health: Your physical health and your financial health are inextricably linked. The CDC reports that 86 percent of our nation’s healthcare costs are attributed to chronic diseases. Many, like diabetes, heart disease and obesity, can be prevented with a good diet and plenty of exercise.

Cut an unnecessary expense: The cup of coffee you pick up at Dunkin Donuts every morning during your ride to work might seem like an insignificant expense at the register. But spending $3 on a cup of coffee every day over the course of the year ends up costing you $1095. Even if you’re not a coffee drinker, there’s probably something comparable in your own life. If so, is there a way you can do it cheaper, or cut it out of your budget entirely?

Diversify your nest egg: Diversifying your savings helps you maximize growth and protect your nest egg at the same time. While not all investment vehicles may suit your needs, sit down with a financial strategist and figure out how to expand your portfolio effectively. Certificates of deposit, IRAs and money market funds are just a few options offered by Milford Bank. You don’t need to try everything all at once, but if you add one new dimension to your portfolio every year, you’ll set yourself up for a very comfortable retirement in no time.

Tackle a home improvement project: Have you been putting off a renovation for years? Make 2017 the year that you finally make it happen. Home improvements can increase your property value, making them great investments—especially if you’re thinking about selling your home in the near future. Speak to a Milford Bank representative about affordable and flexible home equity or home improvement loans to get started.

Procure life insurance to protect your family: There are many families in this country without adequate life insurance coverage. Many more have no life insurance at all. Dwelling on our mortality may not be a popular pastime, and that may be why many individuals are misinformed about the importance of life insurance. Make 2017 the year that you finally have the uncomfortable conversation so that you and your loved ones can have peace of mind for every New Year to come.

To learn more about how you can make the most out of your New Year’s resolutions, check out our online Learning Center here or come by a Milford Bank branch location and speak with one of our representatives today!

 

Savings Strategies for Milford and Stratford Young Adults

by Cortney Meng

If you just recently turned 18, a world of new possibilities has just opened up to you as a legal adult. You can vote, get a full-time job, rent an apartment, purchase motor vehicles and even real estate. Many of you will soon be paying your way through college as well. The next few years will be a formative time during which you develop many of the habits—good and bad—that will inform your decision-making and long-term financial outcome. To get started on the right foot, here are some useful tips to consider as a young adult.

Research potential career paths: Whether you’re headed to college or entering the job market, you’re likely spending a lot of your time thinking about what kind of work you want to do. Check out the 25 top paying jobs in 2016 here. Many fields offer lucrative positions for individuals with and without college degrees. But the job market is always changing, so it’s important to do your research and find a career you’ll enjoy that also has a bright future.

Set periodic financial benchmarks: Your needs and wants will change rapidly over the next few years. It’s important to set benchmarks so that your savings strategy can be tailored to hit them all. Whether you’re saving to buy a pair of skis, pay for college, buy a car or put a down payment on a home, you have to start somewhere. Pinpoint how much you’ll need every week, month and year to hit your targets and stay committed.

Start a retirement fund: The sooner you open a retirement account, the more lucrative it will be in the long run. While your return on investment will vary depending on how your savings are invested, it is a general rule that the longer your investments have to mature, the more valuable they will be. Many people don’t start thinking about retirement until it’s too late. Get a jump now and save yourself lots of stress down the road.

Establish a credit history: You’ll need a good credit score to enjoy many of the benefits of becoming a legal adult. Getting a credit card with a small balance may be one possibility, but you’ll have to make sure to make all your payments each month and keep your balance below 50 percent. You can also start building credit by making timely monthly payments on other loans or bills you may have.

Purchase whole life insurance: Age and health are two of the most significant factors when determining what your insurance premiums will cost. If you purchase a whole life insurance policy now while you’re young and healthy, that rate will be locked in permanently. In addition, whole life insurance policies have a savings element that will build equity as you make payments. While it is not intended as an investment vehicle, it is an added bonus that is particularly valuable if you start a policy when you’re young.

To learn more about saving as a young adult, check out our online Learning Center here or speak with a Milford Bank representative at a location near you!

Three Ways to Stop Oil Prices From Burning Your Savings

by Patty Gallagher

Just a few weeks ago, unseasonably warm weather and atypically low oil prices had homeowners thinking they might get off the hook with more affordable heating bills this winter. But oil prices are climbing again—just as an Arctic cold front made its way across the country to remind us what a real New England winter feels like.

If you get anxious every time you crank up the thermostat because you’re worried about the cost of heating your home, you’re not alone. Nearly 70 percent of Americans have less than $1,000 in their savings accounts—making the prospect of overspending on heating their home a very real struggle.

But there are ways to curb the costs of heating your home. Follow these helpful tips so you can burn oil without burning up your savings at the same time!

Prepay off peak season: Homeowners generally burn significantly less fuel during the summer months. Because of the decreased demand, many oil companies will offer lower rates in order to generate revenue. In many cases, you might be able to prepay and lock in your oil prices for a fraction of what you’re likely to spend if you fill up during the winter. While it may be too late to take advantage this year, speak with your provider during the summer and you may be able to save yourself hundreds of dollars at this time next year.

Invest in a smart thermostat: Once your oil tank is filled, it’s now up to you to heat your home in the most responsible and efficient manner possible. If you forget to turn down the thermostat on an unseasonably warm day, you’re throwing your money away. Investing in a smart thermostat can help you offset the potential for waste. You’ll be able to remotely manage your thermostat settings and control temperatures in different areas of your home. Many of the popular models today can be purchased for less than $200 and may help you save thousands over the years, making smart thermostats one of the easiest and best investments you can make in your home.

Service your furnace: Conducting routine maintenance on your furnace is essential to make sure that it operates at peak efficiency. Some tasks you will likely be able to handle yourself—cleaning your filter and ducts and wrapping your furnace with insulation, for example. Others may require the care of a specialist—checking for leaks and cleaning the furnace itself. It is recommended that you should service your furnace on a yearly basis, so make sure to schedule it as soon as possible to get the most out of your heating system this winter.

To learn about more ways to save your family money, be sure to check out our blog regularly or visit our Online Learning Center here.

Five New Year’s Resolutions to Improve Your Finances in 2017

by Pam Reiss

New Year’s Eve is about much more than watching the ball drop in Times Square or popping open a bottle of champagne. It’s about reflecting on the past and looking ahead to the future. This time of reflection leads millions of Americans every year to make resolutions about how they can improve themselves. If you’re looking for a way to improve yourself in 2017, why not take a look at your finances? Here are five resolutions you can make that can drastically improve your finances and quality of life in the year to come.

Focus on your physical health: Your physical health and your financial health are inextricably linked. The CDC reports that 86 percent of our nation’s healthcare costs are attributed to chronic diseases. Many, like diabetes, heart disease and obesity, can be prevented with a good diet and plenty of exercise.

Cut an unnecessary expense: The cup of coffee you pick up at Dunkin Donuts every morning during your ride to work might seem like an insignificant expense at the register. But spending $3 on a cup of coffee every day over the course of the year ends up costing you $1095. Even if you’re not a coffee drinker, there’s probably something comparable in your own life. If so, is there a way you can do it cheaper, or cut it out of your budget entirely?

Diversify your nest egg: Diversifying your savings helps you maximize growth and protect your nest egg at the same time. While not all investment vehicles may suit your needs, sit down with a financial professional and figure out how to expand your portfolio effectively. Certificates of deposit, IRAs and money market funds are just a few options offered by The Milford Bank. You don’t need to try everything all at once, but if you add one new dimension to your portfolio every year, you can set yourself up for a very comfortable retirement in no time.

Tackle a home improvement project: Have you been putting off a renovation for years? Make 2017 the year that you finally make it happen. Home improvements can increase your property value, making them great investments—especially if you’re thinking about selling your home in the near future. For larger project, speak to a Milford Bank representative about affordable and flexible home equity or home improvement loans to get started.

Procure life insurance to protect your family: There are many families in this country without adequate life insurance coverage. Many more have no life insurance at all. Dwelling on our mortality may not be a popular pastime, and that may be why many individuals are misinformed about the importance of life insurance. Make 2017 the year that you finally have the uncomfortable conversation so that you and your loved ones can have peace of mind for every New Year to come.

To learn more about how you can make the most out of your New Year’s resolutions, check out our online Learning Center here or stop by any location of The Milford Bank and speak with one of our representatives today!

The Milford Bank is an Equal Housing Lender. 

Savings Tips to Keep Guitar Players from Singing the Blues

by Pete Deleo

In the United States, the birthplace of rock’n’roll, there are nearly 2.5 million guitars sold every year.  And while the average price per instrument is higher than a typical holiday present—$433—guitars can actually be one of the most fiscally responsible gifts that you can give.

Once you’ve made the initial purchase, the musician in your life can enjoy a guitar nonstop with few additional expenses. Unlike more physical pastimes, they’ll be able to continue playing their guitar at any age. Guitar players can provide free entertainment, or even turn their hobby into a side job and make a little extra money too!

But purchasing a guitar should still be considered an investment. And just like any other investment, you’ve got to do your research and learn how to get the most bang for your buck. Follow these tips and you’ll be able to help keep the guitar player in your family from becoming another starving artist singing the blues!

Shopping for a first-time guitar player: If your 16-year old just got their driver’s license you wouldn’t purchase them a Rolls Royce. So why would you spend lots of money on a guitar? There are so many different types of guitars on the market today that finding the one that feels right can take some time. Check your favorite music store for guitars for sale on consignment, look online, or even look for guitars available for rent. That way, you can let your budding musician explore their newfound passion without breaking the bank.

Maintaining your instrument: Once you purchase your guitar you won’t rack up expenses as long as you maintain your instrument properly. A properly maintained guitar can last decades without anything other than the occasional new pair of strings. But if you don’t maintain your instrument, it can fall into disrepair, requiring work that can be more expensive than the guitar cost in the first place! Keep your guitar away from extreme hot or cold weather to avoid warping or cracking. When not in use, loosen the strings so that they put less pressure on the neck of the guitar, which will also help to curtail warping.

Consolidate gear for electric guitarists: Acoustic guitars require nothing more than a few fingers to strum their strings. Electric guitars, on the other hand, will be a little more expensive. You’ll need to purchase amplifiers, PA systems and cords—at the least. If you’re shopping for an electric aficionado, you can help save some extra money by purchasing all-in-one gear. For instance, some acoustic guitars come with electric pick-ups so it’s as if you have two guitars in one. There are also amplifiers that come equipped with PA systems so that you won’t have to purchase both separately.

Follow these tips and by this time next year, you may even have someone to play you some of your favorite holiday tunes! To see more great ways to save money in your daily life, check out Milford Bank’s blog here, our online Learning Center, or stop by a office location near you!

Take Time to Give Back This Holiday Season

by Jorge Santiago

Entering the home stretch of 2016, there are plenty of highlights coming up on the calendar: Thanksgiving, New Years and everything in between. The holidays can be full of excitement as you gather with friends and family to give thanks for the wonderful things in your life. With all the planning that goes into the holidays, they can admittedly be a little stressful too. With everything that you and your family have going on over the last few months of 2016, it can sometimes be easy to overlook the fact that many families in the local community are not as fortunate to be in a position to celebrate this year.

One of the most important things to remember during the holidays is that it is a blessing to have everything you need to enjoy a high quality of life. And it is equally important to lend a helping hand to those who do not whenever you can.

Here are just a few ways you can help contribute to the members of the local community that could use extra support this holiday season.

Feed the hungry: Some of the most unforgettable holiday memories are created around the dinner table. For families that struggle to put food on the table, local food banks provide significant relief. While non-perishables are always appreciated, you can also check with representatives at your local food bank to see which items are in high demand. If you have some spare time, you should even consider assisting food banks when they open their doors to serve families—volunteers are always needed. Check out a list of local food banks here.

Help fight homelessness: Given the chilly weather that sweeps in around the holidays, this time of year is particularly difficult for individuals with no roof over their heads. You don’t need to take out a mortgage to lend a hand—donate to local shelters like Milford’s Beth-El Center. The Beth-El Center does more than give a place to eat and sleep. It also offers support services, advocacy and community education. By partnering with organizations like the Beth-El Center, you can not only help the homeless members of the local community meet their basic needs, but provide a comprehensive strategy to reach a long-term and lasting quality of life.

Play Santa Claus: There’s nothing quite like the face of a child when he or she awakes Christmas morning to and sees what Santa Claus has left under the tree. But for many families struggling to make ends meet, toys are a luxury that is out of reach. In order to make sure the holidays are full of excitement for all children in the local community—regardless of which one they celebrate—donate to a toy drive this year. You can purchase a toy for any age group, boy or girl. Even if you can’t purchase a brand new toy, you can still contribute—simply select a few items from home that your own kids no longer play with. Click here to find a toy drive near you.

The Milford Bank will also be participating in and sponsoring a number of charitable events this holiday season, and throughout the entire year. Be sure to stop by any office location, read our blog and follow us on social media for more news!

There’s No Such Thing As A Free Lunch (break)

by Nila Pathammavong

The saying goes that there’s no such thing as a free lunch. According to a recent report the common phrase is now more appropriate than ever. A pricing analysis conducted by NDP Group found that in many restaurant segments, prices have risen 5 percent in the last 12 months. At the same time, grocery prices have remained relatively stable. As a result, restaurant lunchtime traffic is down 4 percent and the average customer bill is down five percent—exactly the same amount as the average restaurant price hike.

According to NPD analyst Bonnie Riggs, “Price value, especially at lunch, is out of whack. Consumers have cut back because they can’t afford to go out for lunch every day.”

Nonetheless, you shouldn’t be cutting the meal from your diet entirely. So how can you take the bite out of your lunch budget without dealing with hunger pangs throughout the afternoon? Here are several ways that workers can deal with the rising price of lunches.

Bring your lunch from home. Packing your own lunch is a very simple solution to deal with the high cost of restaurant prices. The same sandwich you pick up at Subway will cost a fraction of the price if you make it at home. If you never seem to have enough time to make your lunch in the morning, consider doubling the recipe when you make a dinner the night before. If you have a short commute, you may even be able to stop home to prepare your lunch without taking too much time away from your work.

Plan your lunch around special offers. If you can’t find the time to prepare your own meals, at least stay alert for special discounts at the restaurants surrounding your workplace. There are often coupons in local newspapers or online, as well as in-store offers that may bring a meal that is typically too expensive back into your price range.

Eat family-style with your colleagues. Instead of footing a bill by yourself, bring a few colleagues out for lunch with you, order a few dishes that are easy to share and split the cost between yourselves. Not only will you all be able save a few dollars, but you’ll be able to sample a better variety of fare and get to know your coworkers better at the same time!

Graze throughout the day. The earliest humans were nomadic hunters and gatherers and would graze over the course of a day instead of sitting down for three square meals. You can get back to your ancestral roots by selecting a nutritious and filling snack, such as trail mix, and enjoying a few handfuls over the course of the day.

If the cost of your lunch break is leaving you sick to your stomach, try these cost-effective alternatives to eating out. For more ways to save money in your day to day life check out the Milford Bank blog here.

Six Things You May Not Know About Labor Day

by Pat White

With Labor Day coming up on September 5—the first Monday of the month—many of us will be taking advantage of the impending three day weekend. Whether you’re using the chance to take one last weekend getaway to the beach before the end of summer, hosting a backyard party with your friends and family, or heading out to the mall to take advantage of Labor Day sales, we all have one thing in common—we’re grateful to have a little extra time for ourselves.

However you choose to spend your Labor Day, be sure to take a few moments to remember the meaning behind the holiday. We wouldn’t have the wages, benefits or time off that we enjoy today without the activism of our ancestors.

Here are five things you may not know about Labor Day to better educate you on the origins of the holiday.

  1. The idea for Labor Day is believed to have begun in Canada in 1872—22 years before it became a national holiday in the United States! In a show of solidarity for striking workers, 1,500 citizens from Hamilton, Ontario demonstrated in the streets. Their aim? A nine hour work day.
  2. Even though Labor Day became a national holiday in 1894, it was first celebrated in New York City by the Central Labor Union in 1882. Over the following 12 years, 23 states marked their own celebration before the Federal government opted to make it a universally recognized holiday.
  3. Congress voted unanimously to make Labor Day a national holiday in 1894, just six days after the conclusion of the Pullman Strike. During the strike, 125,000 railroad workers walked off the job to protest wage cuts without a corresponding decrease in rent and utility costs in their company-owned housing. During the strike 30 workers were killed, 57 were wounded and property damage exceeded $80 million.
  4. The average wage for a laborer during the 1890’s was 15 cents per hour. A skilled worker, such as a carpenter, would still expect to bring home an average of only 32 cents per hour.
  5. President Cleveland, though he supported the establishment of the Labor Day holiday, was fearful that empowering workers would give rise to strikes, riots and strengthen socialist and anarchist movements.
  6. The first minimum wage law was passed in New Zealand the same year that Labor Day was established as a national holiday.

Ultimately, we should not celebrate Labor Day without forgetting the activism and difficult conditions that workers endured in our recent past. Because those individuals were willing to stand up and fight for their rights, we now enjoy the fruits of rising wages, shorter work hours and better benefits.

All offices of The Milford Bank offices will be closed in observance of Memorial Day. Be sure to download our mobile application though, and you’ll be able to conduct your banking conveniently without having to stop at one of our locations. You can download the application here.