Get tips on how to finance your home improvements! Yasmin Young, host of the 2 to 6 Takeover (2-6PM, M-F), talks with Kawanza Humphrey, VP of KeyBank is here to help!

  • Tips for Financing Home Improvements

    Is Financing a Home Addition Right for You?
    • If you’re looking for a pragmatic home improvement project that could add value to your home, a bonus room may be just what the realtor ordered.
    • But don’t measure the drapes for your new room without doing your due diligence. First ask these questions to determine whether financing a home addition makes sense for you.
    • First, determine whether it’s actually feasible to build an addition on your property. Start by identifying the place you’d be most likely to put it. Common options include the second-floor space above an attached or detached garage, a first-floor space outside the home’s existing footprint, a newly finished basement or a newly weatherized porch or sun-room area.
    • Next, assess the cost and legalities of building your desired addition. Does your home’s layout or construction constrain your options or render your proposed project unrealistically expensive? Do your plans violate local zoning codes, requiring a variance to proceed? If your proposed room is too much for your budget or too impractical for your property, it’s best to table the idea. There are plenty of other value-boosting home improvement projects to choose from.
    • The versatility of bonus rooms is a core component of their appeal. Still, you want to have a plan before you start knocking out walls. Some common uses include:
    o An entertainment room or theater
    o A spare bedroom for guests
    o A full-time bedroom for older or adult children who live at home or stay for extended visits
    o Living quarters for an aging parent or grandparent
    o A home office or computer room
    o This isn’t an exhaustive list, and there’s no “wrong” way to use a bonus room. But it might not be a cost-effective choice for your home if its best and most likely use is storage and the occasional catnap.
    • Finally, take a hard look at your financing options. If you have sufficient equity in your home, consider a home equity loan, home equity line of credit or cash-out refinance. If you’re purchasing a fixer-upper with big plans to make it your own, a Federal Housing Administration 203(k) renovation loan might be your best bet. If you have limited savings and equity in your home, you can look into personal loans or credit cards that give you cash back — though remember that your credit score and history will affect your qualification and interest rates.

    Additional online resources from KeyBank:

    (This material is presented for informational purposes only and should not be construed as individual tax or financial advice. Please consult with legal, tax and/or financial advisors. KeyBank does not provide legal advice. KeyCorp 2017. KeyBank member FDIC.)

  • Managing Paying Your Bills

    How to Manage Bills: Simple Ways to Automate Your Monthly Expenses
    • Are you stressed over managing your bills? After all, you’ve got a lot going on in your day-to-day, and the last thing you want to do is get hit with late fees for missing payments.
    • Setting up automatic bill payments for everything from rent and mortgages to utilities and even those few bucks you borrowed from mom can save you time, stress and (most importantly) money. Avoid late fees and keep your credit report healthy with these savvy tips on how to manage bills with easy automatic payments.
    • What Is an Automatic Payment?
    • Automatic payments are payments that you can set up either through your bank or directly with the companies sending you bills, like your car loan provider or the electric company.
    • It’s easy to set up automatic payments for your monthly bills. Here’s a step-by-step guide to making sure you get all your monthly bills automated through bill pay at your bank.

    o 1.Make a list of all your monthly bills and credit card payments.

    o 2.Explore your bank’s bill pay options. Many offer valuable rewards programs where you can earn points for each bill they pay for you every month. Most bill pay programs are free. If you need a next-day payment plan, such as Pay It Faster, that can usually be arranged for a small fee.

    o 3.Gather the account information for each bill and credit card: account number, mailing address, monthly payment amount and due date.

    o 4.Enroll the bill or credit card in automatic payments, designating the account that will be used to pay the bill each month.

    o 5.You’re done! Sit back and relax.

    Additional online resources from KeyBank:

    (This material is presented for informational purposes only and should not be construed as individual tax or financial advice. Please consult with legal, tax and/or financial advisors. KeyBank does not provide legal advice. KeyCorp 2017. KeyBank member FDIC.)

  • Tips for Improving Your Credit

    Tips to Improve your Credit Score
    • Figuring out how to improve your credit score in anticipation of a major purchase like a home or car is a smart move. The better your credit score, the lower your cost to borrow money to make that purchase.

    • While credit scoring companies weigh a variety of factors in evaluating your credit history, your credit payment record is the most important component on the list. The surest way to boost your credit score is to consistently pay your bills on time.

    • Bill payment history accounts for 35 percent of a FICO score, according to MyFico, the consumer website of the most widely used U.S. credit scoring company. FICO scores typically range from 300 to 850 points. An excellent rating, earning the lowest rates on loans, is 760 or higher. Even one missed payment to a creditor can slash a decent credit score by more than 100 points.

    • One way to avoid having your credit score dinged for late payments is to create and stick to a budget that prioritizes credit payments above discretionary spending like eating out or adding to your wardrobe. It also might help to put all your payment due dates in your calendar — whether digital or the old-fashioned paper kind. Set up automatic payment for your bills, which can help ensure you won’t get your credit dinged by a little absentmindedness.

    • Not paying your bills on time will put a serious dent in your credit score. The good news is that even if you have a few late bills in your past, you can earn points for good bill-paying behavior going forward.

    Additional online resources from KeyBank:

    (This material is presented for informational purposes only and should not be construed as individual tax or financial advice. Please consult with legal, tax and/or financial advisors. KeyBank does not provide legal advice. KeyCorp 2017. KeyBank member FDIC.)

  • Tips for Saving Money While Changing Your Name For Marriage

    Wedding Planning: Budgeting for a Name Change
    • While you may change your name at any point in life, many people encounter name-change hurdles around a wedding. The cost of changing your name isn’t necessarily a consideration until you’re knee-deep in paperwork, so make some room in your wedding plans (and budget).

    • While you may change your name at any point in life, many people encounter name-change hurdles around a wedding. The cost of changing your name isn’t necessarily a consideration until you’re knee-deep in paperwork, so make some room in your wedding plans (and budget).

    • Step one is to obtain proof of your legal name change, whether it’s a marriage document or court order. According to CostHelper, copies of a legal marriage certificate cost between $3 and $15. You’ll want to order several, as many agencies require them.

    • For a wife taking her partner’s last name or adding it to her own (with or without a hyphen), the name change can take place via the marriage license. For a husband wanting to take his partner’s name — or a couple choosing a new name — it’s more complicated. Most states require a legal name change, involving additional paperwork and court filing fees that can cost more than $200.

    • Updating your Social Security information: You’ll have an easier time updating your name on other documents. The process is straightforward: Mail or take your application and documents to your local Social Security office. You’ll need proof of your legal name change. That’s where copies of your marriage certificate come in handy. Updated Social Security card in hand, head to your local Department of Motor Vehicles. If you request your name change less than one year after your passport was issued, there is no fee to update it. Otherwise, you need to pay the adult renewal applicant fee.

    • For those changing a name because of a marriage and traveling abroad for a honeymoon, you may want to wait to change your name. Cost: $110 for an updated passport book with another copy of your marriage certificate or proof of name change to get a new license.

    • Banking: Remember to change your name on your checking and savings accounts. You’ll also need to update your retirement accounts, including IRAs, mutual funds or employer-backed 401(k)s. This way, your creditors will notify credit bureaus, ensuring that your credit history under your old name isn’t erased or changed. It’s also a great time to change your beneficiaries and order new checks. If you’re combining bank accounts, consider whether you’ll add your spouse as an authorized user to help them build credit or apply for a new card together so you both have equal responsibility. Cost: Generally free for updated cards, cost of checks varies

    Additional online resources from KeyBank:

    (This material is presented for informational purposes only and should not be construed as individual tax or financial advice. Please consult with legal, tax and/or financial advisors. KeyBank does not provide legal advice. KeyCorp 2017. KeyBank member FDIC.)

  • Tips for the Most out of Your HSA

    HSA Contribution Tips
    • Now is the time of year when most people are making choices about insurance and healthcare. Have you put money in your health savings account (HSA) recently? If you have an HSA-eligible high deductible health plan, consider putting HSA contributions at the top of your to-do list. HSAs offer even more tax advantages than retirement accounts and can be a big help when you have medical bills.

    • Contributing to an HSA cuts your taxes in a few different ways. First, you get a tax deduction for the amount you contribute, up to the maximum set by the IRS. Then, you can invest the money in your HSA — and you don’t owe taxes on the investment gains or any interest earned on the account.

    • Withdrawals to pay for eligible medical expenses are also tax-free. So you pay less in taxes while building up savings that you can use in the future to pay for doctor visits, prescription drugs, hospital bills or other qualifying medical expenses. Perhaps best of all, the money in your HSA never goes away. Any funds left over at the end of the year roll over and are ready for you to use whenever it’s needed.

    • If you forget to bring your HSA debit card to your appointment, never fear. You can pay with your regular credit or debit card and be reimbursed out of your HSA funds later.

    • To figure out if you should contribute the maximum, first ask yourself how equipped you would be to cover unexpected non-medical expenses in the near future. If you don’t have an emergency fund, then you should split your savings between your HSA and a more liquid savings account. That’s because you’ll have to pay a penalty to withdraw from an HSA for expenses that aren’t health-related, though unexpected medical bills are one of the most common emergency expenses.

     

    Additional online resources from KeyBank:

    (This material is presented for informational purposes only and should not be construed as individual tax or financial advice. Please consult with legal, tax and/or financial advisors. KeyBank does not provide legal advice. KeyCorp 2017. KeyBank member FDIC.)

  • Tips for Investing

    Tips for Investing

    • Something a lot of you wanted to know about in our poll on Facebook and WBLK.com, investing. It’s a good way to make your money grow. But where do you start?

    • Your 401K is a good place to start. It’s money that comes right out of your paycheck and goes toward your retirement. Your employer likely has a plan that you can enroll in and the good thing is it reduces your taxable income.

    • There are also many apps out there and in our branches, you can come in and speak to someone with Key Investment Services. They will look at your situation and help you develop a plan to help you invest and save for things like retirement, a major purchase, saving for college.

    • Investment and insurance solutions
    o Mutual funds
    o Annuities
    o 529 College Savings Plans
    o Term life insurance
    o Long term care insurance
    o Managed accounts

    Additional online resources from KeyBank:

    (This material is presented for informational purposes only and should not be construed as individual tax or financial advice. Please consult with legal, tax and/or financial advisors. KeyBank does not provide legal advice. KeyCorp 2017. KeyBank member FDIC.)

  • How to Start Building Your Credit

    How to Start Building Credit
    • You probably know that major life purchases like a home or car require credit. But you may not know how to start building credit. It can seem like a vicious cycle: You need access to credit lines to get good credit, but no one will give you a credit line if you don’t already have good credit.
    • Secured Credit Cards: With a secured credit card, you put a sum on deposit at the issuing bank, either a percentage or the equivalent of the credit line. For example, a credit card issuer might request a $250 security deposit for a $250 credit line. This way, the bank has the money for the balance of your charges on deposit at all times, making you a less-risky person for them to issue a credit card to.
    • Student Credit Cards: If you’re enrolled in college, credit card companies want to help you build credit. This means you may be able to get a credit card without a cosigner or even a security deposit. While you may be more likely to get accepted for a student credit card compared to a non-student card, your credit line may be lower and interest rates slightly higher to balance out the risk of issuing credit to someone without a good credit history.
    • Charge wisely: A smart way to start building your credit history is to ensure that you never charge more than you can pay off in a single month.
    • Balances matter: Did you know that your credit score is partially based on how much credit you have available? This means that if you have two credit cards with $500 limits but only $200 available across both cards, your score will lower. Try to keep month-to-month balances you can’t pay off at no more than 30 percent of your credit limit per card.
    • Make payments on time: A single payment made 30 days late can have a significant impact on your credit score. Set reminders in your calendar for five days before any payment is due so you can schedule a payment online. On-time payments mean an easier road to building credit.

     

    Additional online resources from KeyBank:

    (This material is presented for informational purposes only and should not be construed as individual tax or financial advice. Please consult with legal, tax and/or financial advisors. KeyBank does not provide legal advice. KeyCorp 2017. KeyBank member FDIC.)

  • Getting A Security Deposit Back

    Tips For Getting Your Security Deposit Back From Your Landlord
    • If you’re a renter, the first costs that probably come to mind when budgeting are your rent, your utilities and other monthly bills. But there’s a one-time cost associated with renting that’s easy to forget: the security deposit required when you move into a new place. That’s usually a hefty chunk of change, so you want to make sure you’ll get your full security deposit refund when it’s time to move out.
    • Maintain Your Space: It doesn’t take too much work to keep your home clean while you live in it — and doing so will help make sure that no lasting damage keeps you from getting your deposit back. Cleaning up on a regular basis means vacuuming, dusting and wiping down or scrubbing surfaces, plus acting fast with messes, like spills, to avoid set-in stains.
    • If you run into a problem with your rental, reach out to your landlord right away. Homes and apartments need regular maintenance, and it’s your landlord’s responsibility to take care of standard and routine repairs. If you address issues immediately, they’ll likely fall into that “standard and routine” category. But ignoring or trying to hide problems can mean that you won’t see your security deposit refund later.
    • Take Pictures and Meet With Your Landlord: Once you’ve moved all your belongings and furniture out of your home, do a final walk-through of the space. Take pictures and document how you left the home, in case you don’t get back what you think you should. Ideally, do this with your landlord to show them what you’ve cleaned or replaced. This is a good time to ask if there’s anything else you need to do to get your security deposit back before you leave.

    Additional online resources from KeyBank:

    (This material is presented for informational purposes only and should not be construed as individual tax or financial advice. Please consult with legal, tax and/or financial advisors. KeyBank does not provide legal advice. KeyCorp 2017. KeyBank member FDIC.)

  • Combining Finances

    Combining Bank Accounts When You Move in Together
    • Combining bank accounts is an option many unmarried couples consider when they’re living and managing their finances together.
    • A July 2015 survey by Credit Karma found that half of married millennials and a third of baby boomers had either fully or partially combined their finances with their spouse before they married.
    • If you’re thinking of moving in with your partner and sharing household expenses, it’s important to have a conversation about how that arrangement will work. A joint bank account is one way to merge your finances, but there are several things to consider before deciding if it’s the right solution for you and your significant other.
    • Every couple’s situation is unique, but it’s helpful to know about these three common ways to handle banking and bill paying when you’re sharing household expenses:
    o Keep your bank accounts totally separate, dividing up the payment of bills or reimbursing each other for half of your shared expenses — or whatever portion you agree is fair.
    o Open a joint bank account to cover shared expenses, while maintaining separate accounts for personal spending.
    o Completely merge your finances into a single joint bank account.
    • Having a frank talk about your money management habits — and about how your financial goals and spending priorities fit together — will help you avoid the potential pitfalls of joining your money with your partner’s.
    • Decide on the process you’ll use to work through any financial conflicts. Discuss which types of purchases will require agreement beforehand, and stick to that rule. Don’t wait until the monthly bank statement arrives to try to explain a big-ticket impulse buy to your partner.

    Additional online resources from KeyBank:

    (This material is presented for informational purposes only and should not be construed as individual tax or financial advice. Please consult with legal, tax and/or financial advisors. KeyBank does not provide legal advice. KeyCorp 2017. KeyBank member FDIC.)

  • Budgeting for Vacation

    How to Stick to Your Vacation Budget

    • According to Entrepreneur, the average American family of four spends around $4,580 annually on vacations. That’s a hefty chunk of change, and the last thing you want to do is stress over expenses instead of enjoying your well-earned time off.
    • Planning is key
    • Research: Get an idea of restaurant options at your destination and approximate price ranges. Don’t overlook the authentic, delicious and affordable meals you can find at places like street vendors and grocery stores. Do the same for attractions. You may find some of your “can’t-miss” activities become “not worth it.” Look up free museum days and see if attractions offer discounted admissions for late-in-the-day visitors.
    • Build Room for Spontaneity: When you go on vacation, you inevitably find something you didn’t plan for: a can’t-live-without souvenir or an experience you didn’t see in your research. IndependentTraveler.com has a travel budget calculator that outlines various expenses that you may not have anticipated. Budget some cash in a “miscellaneous” category or pad a category, such as food, where you may overspend.
    • Know the Exchange Rate: Search online to get an idea of exchange rates. Knowing, for example, that 100 U.S. dollars is roughly equal to more than 2,500 Czech koruna can help you avoid taking too much or too little money from an ATM. You can also exchange dollars for foreign currencies before you leave and divvy money up for food, activities and transportation costs.

     

    Additional online resources from KeyBank:

    (This material is presented for informational purposes only and should not be construed as individual tax or financial advice. Please consult with legal, tax and/or financial advisors. KeyBank does not provide legal advice. KeyCorp 2017. KeyBank member FDIC.)

  • Buying a Home - Saving for a Down Payment

    Tips For Saving For A Down Payment And Purchasing A Home!

    • A recent American Banker Association survey found that only 34 percent of respondents said they felt confident they understand the mortgage application process.

    • The survey also showed 61 percent of respondents still prefer personal meetings with their lender to complete mortgage applications as opposed to just using online resources.

    • The first step is working with a mortgage loan officer to look at income and expenses and know what you can afford, including a down payment, taxes and insurance, closing costs.

    • Get pre-qualified for a mortgage. Not only will this tell you how much you can spend, but getting pre-qualification helps show sellers you are a serious buyer.

    • Many lenders, including KeyBank, have first-time homebuyer programs available with lower down payment requirements. Beyond these programs, a mortgage loan officer will be able to answer your questions about mortgages and down payments.

    • For a home purchase, you can borrow against your 401(k). In other words, you can borrow money from your retirement savings and put it toward your home purchase. As you repay the loan, you’ll be putting money back into your own pocket – not the lender. The typical repayment period on these loans is five years.

    • Review your monthly budget for places where you can trim your costs. Our tool HelloWallet can help you see exactly where your money is going. For example, are you always eating out? Or buying a premium coffee (or maybe two) every day? Once you’ve committed to saving for your down payment, it’ll be a little easier to trim those extra costs.

    • Saving for your down payment takes time and planning. Break down your savings goal into manageable amounts and set a timeline so that you can track your progress.

    • Treat your down payment goal as importantly as you treat other bills, like rent, utilities or life insurance. In other words, create a “down payment bill” for yourself and pay yourself every month.

    Additional online resources from KeyBank:

    (This material is presented for informational purposes only and should not be construed as individual tax or financial advice. Please consult with legal, tax and/or financial advisors. KeyBank does not provide legal advice. KeyCorp 2017. KeyBank member FDIC.)

  • Buying a Vehicle - Buying and Maintaining

    Budgeting For Buying And Maintaining A Car
    · By knowing what you can realistically afford, you can set a car budget that will help you avoid overpaying for a car and getting yourself into financial trouble.

    · The first and easiest step in setting a car budget is to determine what your income and expenses are. Remember, you are going to want to base your income on what you actually take home (after taxes) and not your gross pay.

    · Much of your budget will be dictated by your personal circumstances. If you already have a lot of expenses—such as a mortgage or rent, student loans, food, etc.—there isn't much you can cut from your budget.

    · If, on the other hand, you have expenses you can and are willing to cut, like your entertainment or vacation budget, then you can afford more for a car.

    · The next, and much more difficult step, is to determine how much you can afford and want to spend on a new car. Just because you can afford an expensive car doesn't mean you should buy one. You may have other priorities to consider, or may want to account for unexpected expenses down the road.

    · The general rule of thumb is that you shouldn't spend more than 15% of your monthly income on your car loan payments—and some even say that is generous.

    · Unless you are very comfortable with debt, the larger the down payment you can make, the better. It will cost you less in the long run because there will be less interest to pay.

    · Shoot for a 20% down payment if you can.

    · Budget for the following recurring costs: maintenance, car insurance, gas, inspections, state registration renewal and parking.

    Additional online resources from KeyBank:

    (This material is presented for informational purposes only and should not be construed as individual tax or financial advice. Please consult with legal, tax and/or financial advisors. KeyBank does not provide legal advice. KeyCorp 2017. KeyBank member FDIC.)

     

  • College - Budgeting & Saving

    Make Sure Budget Basics Are Part Of College-Bound Checklist

    All across the country, college-bound students and their families are running through the move-in day checklist:

    Sheets and towels? Check.
    In-room refrigerator? Check.
    Shower caddy? Check.

    First-year-away-from-home-budget – Probably not even on the list.

    It’s no secret higher education is an increasingly expensive investment that can affect students’ and their families’ personal finance, starting with saving for college through to paying off student loans.

    Most families actively involved with helping to pay for college have already come to terms with the big-ticket items tuition and fees. (According to the College Board’s most recent survey of college costs, tuition and fees at a two-year public school average $11,520. That tab soars to $45,370 for private four-year college.)

    But late-stage sticker shock can still set in as every day miscellaneous expenses start adding up, with the average student spending about $5,000 on additional expenses:

    * Laptop or tablet, with accompanying software updates.

    * Everyday essentials such as laundry and cell phone service.

    * Entertainment, whether it’s coffee-shop caffeine and snacks to fuel an all-nighter (and dorm meals missed while recovering from same) to on-campus shows to off-campus adventures

    * Travel to and from home

    KeyBank has the following tips for the college-bound, their parents and others who are helping them along the way:

    The first step is taking a hard look at all anticipated expenses. Then, break those costs out between needs and wants.

    The “needs” expense column includes costs such as books and supplies, mandatory fees such as lab and dorm fees, travel expenses for trips home during the school year.

    The “wants” expense column can quickly fill up with small items – the occasional meal out, the occasional trip to the movies, passes to school sporting events – to more expensive ventures such as social group membership fees or accompanying a friend on a spring break vacation.

    The goal for the college-bound and their families is not limiting spending on “needs” and do without things someone might want. Building relationships is a big part of the college experience, and building relationships starts with shared experiences such as social events, impromptu off-campus adventures and the like.

    The bottom line is this: Think through what it will cost to cover the things your college-bound child will need. Drill down into the details so there are no fiscal surprises. Then have a frank conversation with your college-bound child about what he or she can spend on items in the “wants” column.

    Doing a deep dive into wants and needs is a first step toward financial wellness. At KeyBank, financial wellness means having the confidence to dream big as the result of knowing your current financial situation, your financial goals and having access to tools and insight to attain those goals. KeyBank’s financial wellness program, powered by industry leading personal finance software, helps clients to take control of their finances.

    Armed with complete and realistic financial picture, families can develop budget and spending plans to help the college-bound family member to manage their money.

    Budget basics

    When you think about it, there’s no real difference between a real-world budget and one for college students. Budgets are based on income and expenses – and the occasional incentive for boosting the former and sticking to the latter.

    The key to a successful budget, especially for a college student, is to keep it simple, realistic and goal oriented. First, review expenses – what your student needs and what your student might want. Then, determine available income, which can be money from summer jobs, graduation gifts, a parent-provided regular allowance or proceeds from a part-time job on campus or in the community.

    Finally, add in savings goals so students learn the value of exercising restraint on today’s spending to create future financial flexibility.

    For example, that student budget could include a savings incentive – a special senior year vacation, a new (or new-to-them) vehicle or gift cards to help the new college grad settle into their first post-college apartment.

    Yes, saving a significant amount of money can seem insurmountable. At KeyBank, our experience is small, consistent savings efforts really do add up over time. Saving $5 a week every week for four years is more than $1,000 tucked away at graduation. Parents could help support the savings incentive by matching their students’ savings goal.

    Remember, the primary purpose of college is to help students gain an education that will prepare them for a fulfilling career full of great earning potential. By helping college-bound offspring make strong financial decisions throughout their college experience, parents can have peace of mind knowing they have given their college student a head start on financial wellness.

    Additional online resources from KeyBank:

    (This material is presented for informational purposes only and should not be construed as individual tax or financial advice. Please consult with legal, tax and/or financial advisors. KeyBank does not provide legal advice. KeyCorp 2017. KeyBank member FDIC.)

More From 93.7 WBLK