How Much Mortgage Can You Afford?

One of the biggest mistakes you can make is buying a home you can’t afford. If you borrow too much, a bad turn of events—like job loss—can quickly make monthly mortgage payments unmanageable. Luckily, there are mortgage loan services that can help you estimate how much you can truly and comfortably spend on a house. It’s also a good idea to remember the following when deciding on how big of a mortgage you should take on.

The formula

Most home buyers can afford to buy a property that’s worth between 2 and 2.5 times their gross income. So if you’re earning $100,000 annually, you should be able to afford a $200,000 to $250,000 mortgage. But that’s just a general guideline. A mortgage loan officer in Georgia will be looking into other factors, too, such as what they think you can afford and personal criteria outside of your finances.

Every lender has a unique set of criteria, but the terms and size of the loan and your ability to purchase will largely depend on these factors:

• Gross income – This is your income before taxes. It includes your self-employment earnings and/or salary, any child support, disability, alimony, or social security you receive, etc.

• Front-End ratio – This is the percentage of your yearly gross income that is dedicated to monthly payments (the principal, interest, taxes, and insurance). In general, monthly payments shouldn’t exceed 28 percent of your gross income. That said, some mortgage loan services allow certain borrowers to go beyond 30 percent or even 40 percent.

• Back-end ratio – Also called ‘debt-to-income ratio,’ this is the percentage of the gross income that goes towards covering debts like outstanding loans, car payments, and child support.

The impact of your credit score

One of the functions of a mortgage loan officer in Georgia is to assess how good you are at paying loans. To do this, they look at your credit score. A low score—which indicates that you’re a higher risk borrower, may result in higher interest (annual percentage rate) on the loan. So, if you’re planning to buy a home in the future, it’s best to start building a good credit score today.

Calculating the down payment

A down payment is usually required by lenders and is typically at least 20 percent of the property’s purchase price. However, some lenders allow a smaller down payment. Of course, the more money you can pay towards the down payment, the less financing you will need.

How lenders make their decision

Lenders will often look at your income, assets, liabilities, and debt. They want to know how much you are making and the current and future demands on your income. Their job is to make sure that you can consistently make payments. Ultimately, it’s the down payment, your monthly expenses, and your income that serve as base qualifiers, and your credit score and history determine the rate of interest.

Don’t be house poor

Keep in mind that a mortgage loan officer in Georgia will consider more than your gross income when establishing how much home you can afford. If you want to be financially prudent, look at your net income or take-home pay instead. Make sure that you’re not putting more than 25 percent towards mortgage payments. Otherwise, you could become ‘house poor,’ without enough money for other essentials and nothing left to save for your retirement.

It’s also important to take a good hard look at your personal financial situation and ask yourself if you’re truly ready for a mortgage. Are you living from paycheck to paycheck? If yes, then the smallest deduction from your monthly budget could be disastrous. Perhaps you should build your income first and secure the stability of your job.

Lenders will only look at your existing debt when calculating the back-end ratio. But what about the other expenses that you might have in the future? Be sure to take into account your children’s college fund, a new car you might want to get someday, or a vacation you want to take.

Don’t forget the costs beyond your mortgage. There are many other expenses that come with being a homeowner, such as home maintenance costs, utilities, décor and furniture, and neighborhood association fees.

Finally, think about your lifestyle. Are there changes you can make to make paying for a home less stressful? Review your spending habits and make adjustments as necessary.

6 Reasons You Need to Be on Top of Your Personal Finances

Do you find the ins and outs of money management overwhelming? If so, you are not alone. The good news is that personal finance doesn’t have to be intimidating. You can learn how to handle your money and grow real wealth once you begin being more responsible about your finances.

Signing up for a personal banking service is key to organizing your money and building financial stability. You don’t need to have millions in the bank to get access to personalized financial services, because some of the best banks now offer them online to all of their clients. These banks also offer wealth management in Augusta GA to help you make informed and balanced decisions about the financial products and services available to you—decisions that will ultimately benefit your financial health and help secure your future. Here are just some of the many reasons why you need to stay on top of your personal finances.

1. Financial management keeps you from overspending.
Everyone knows how easy it can be to spend money without even thinking about where all your hard work goes. Without proper money management, you are prone to go over your budget on a regular basis. When you are not careful about restricting how much you spend, you limit your future spending power, as more of your monthly income is channeled to debt payments. Determine a working budget for your monthly spending so you can know when to stop spending.

2. Managing finances helps you get closer to your goals.
When you have a budget plan, you prioritize your spending and focus your money on things that matter most—be it getting out of debt, starting a business, or perhaps saving up for a new car or a new house. A budget helps you plan and gives you a way to track your progress.

3. Money management saves you money.
People who don’t budget their income tend to save less, if they are at all able to save anything. When you budget, you get to allot specific portions of your income for certain things—from paying your bills to transferring money into an investment or savings account. Budgeting also helps keep you from dipping into your monthly savings.

4. Managing your money stops worry and allows you to enjoy your hard-earned money more.
When you budget, you get to decide where you put your money, therefore removing the guilt of spending a significant portion on things you enjoy most, so long as you are still meeting other needs and are able to save for the future.

5. Managing your money increases your financial flexibility.
Budgeting helps you move your money around more flexibly and efficiently between the categories you’ve set and even add more categories, if your budget allows. This makes adjusting for and covering unexpected expenses easier.

6. Wealth management puts you in control.
When you budget your finances, you gain full control of your money by prioritizing spending, tracking your finances, and ensuring a solid plan is in place to help you reach your financial goals.If you need help with wealth management in Augusta GA, Queensborough National Bank and Trust is the best way to make personal banking services truly personal, providing you with the most attentive services to ensure your personal financial wellness.

Online Payment Fraud and How to Reduce It

Online payment fraud comes in many forms. By definition, it refers to any type of illegal or false transaction initiated and completed by a cybercriminal. In a fraudulent online payment transaction, the perpetrator deprives victims of funds, property, personal interest or any other sensitive information over the internet. This is why banks and other types of organizations and businesses that conduct transactions online rely on robust online banking security measures to ensure safer online transactions.

Online payment fraud can take the form of fraudulent or unauthorized transactions, false refund requests, returned and/or bounced checks, as well as stolen or lost merchandise.
Ecommerce businesses charge clients and customers for services and products through electronic transactions. With the increased volume of online and electronic payment transactions comes a rise in the occurrence of fraudulent activities as cybercriminals find even more opportunities to conduct their sinister deeds.

Online banking is also a target for hackers. Some of the most common forms of payment fraud online include identity theft, phishing, pagejacking, merchant identity fraud, and advanced fee/wire transfer scams. Because of this, ecommerce businesses, online retailers, and banks with online facilities must look for ways to combat and protect their clients from becoming victims.

Preventing fraud has a lot to do with knowing exactly how fraud happens. Cybercriminals and hackers are tech-savvy and are skilled at obtaining people’s information online. They typically pose as legitimate representatives of companies who are authorized to ask for and collect sensitive information through email interactions, sending malware to smartphones and inboxes, instant messaging, phone calls, rerouting traffic to harmful or fraudulent websites, and through online auctions, among many others.

Cyber thieves are also very adept at penetrating network security systems by means of exploiting patches and glitches, as well as systems that have not been updated recently. Such gaps give hackers a way around firewalls, making it easy for them to obtain sensitive information illegally.

Most online businesses do their best to fight fraud by ensuring that their network security systems are constantly updated with the latest protection. Robust antivirus software and firewall systems are designed to serve as shields against hackers’ attempts to access and penetrate secure networks. By constantly updating their system and software, they ensure that your information and sensitive business data are safe from fraudulent activity.

You also have to be vigilant in order to protect yourself from these schemes. Here are some tips to keep in mind:

1. Try to be aware of the latest fraud activities and trends
2. Routinely change your login credentials (particularly your online banking passwords)
3. Log out of your account even if you’re the only person using your phone or laptop
4. Report anything suspicious to the online merchant or bank

It’s also important to make sure that your online bank has all the systems in place to ensure that your information remains secure. Queensborough National Bank and Trust is a leading provider of safe online banking, keeping systems and security features up-to-date to ensure clients’ peace of mind whenever making online payments and performing monetary transactions online. For sure online banking security, choose only Queensborough National Bank and Trust.

First-Time Home Buyers’ Guide: The Basics of a Mortgage

Buying a home for the first time can be daunting, to say the least. There are a lot of decisions to be made and factors to consider especially when it comes to selecting an affordable mortgage. Overwhelmed? Don’t worry—we’ll make it easier for you. We’ve put together this guide to mortgage loan services to help you save money in the long run.

Getting to know your options.

There are different types of mortgage loan services, but not all of them will be the right fit for your situation. If you are having difficulty putting together enough funds for the down payment, consider the following loans:

• FHA loans – The Federal Housing Administration has insured loans that allow down payments that are as low as 3.5 percent.

• Conventional mortgage – These comply to the standards set by Fannie Mae and Freddie Mac, government-sponsored entities. Down payments can be as low as three percent.

• VA loans – The Department of Veterans Affairs guarantees these loans, and in some cases, they will not require a down payment.

Making a bigger down payment typically means enjoying lower monthly mortgage payments.
If you want the lowest possible monthly payment, consider a fixed 30-year mortgage. Can you afford to pay more monthly? Consider 15- or 20-year fixed mortgage loan services—they will give you lower interest rates.

Saving up for a down payment

If you are planning to buy a home in the next few years, start saving up for the down payment as early as now. The standard used to be 20 percent, but lenders are now accepting much less especially if you are buying your home for the first time. With first-time homebuyer programs, the down payment could be as low as three percent.

However, take note that putting down anything below 20 percent could result in higher costs and spending for mortgage insurance. Also, a small down payment is not always ‘small.’ For instance, if you are buying a $200,000 home and you are putting five percent down, then you still need to save $10,000.

A loan officer from Queensborough National Bank can discuss this matter with you. You can also find a lot of online tips on how to save for a down payment—including saving all your work bonuses and tax refunds, having an automatic savings plan, and meticulously tracking down your progress.

Finding the best lender

It’s always a good idea to compare lenders offering mortgage loan services in your area. Find at least three to four different lenders or banks, including Queensborough National Bank, and consult with their loan officers for advice.

Loan officers understand the challenges of buying a home, and they can help you pre-qualify and minimize the guesswork involved in finding the best mortgage. Don’t hesitate to visit Queensborough National Bank to talk to someone.

Getting pre-qualified

This is a great way to determine how much house you can afford. Getting pre-approval will also show sellers that you are a serious home buyer.

Follow These Tips to Avoid Debit Card Fraud

Bank and debit card fraud are real and present dangers, especially in this day and age of fast-paced technology and widespread use of online banking. Modern conveniences—although highly beneficial—can likewise have adverse implications in terms of safety, especially when it comes to banking and similar types of financial transactions. With the rising cases of fraud in the banking world, it pays to be vigilant in the way you use your debit card or an online banking app to reduce vulnerability to such fraudulent activities. By following helpful safety tips, you can keep hackers and suspicious entities out of your banking accounts, starting with being careful where you give out and use your debit card information in order to keep your account and your hard-earned money safe. Here are even more tips to help you avoid debit card fraud:

1. Cover your pin whenever using an ATM and only use machines that are located in well-lit and guarded areas. As often as possible, use your own bank’s branch ATM and withdraw funds during business hours to avoid unnecessary risks when accessing your account.

2.  Keep small amounts in your checking account and leave larger amounts in your savings account. Moving bigger funds to a more protected, less used account is a good way to keep your savings from a potential breach. The less money you keep in accounts that you frequently access and use, the smaller the chance for hackers to gain access to huge sums of your money. If you don’t want to keep a separate checking account, consider getting a credit card to facilitate daily purchases.

3.  Opt for daily alerts with the bank. Most banks offer alert services, either through text messages or some other form of communication, so clients stay informed about transactions using their debit cards. This will let you know right away when your account has been compromised, such as when an unauthorized transaction is made.

4.   Set-up a more secure multi-factor authentication. You may likewise prevent debit card fraud by setting up a 2-factor authentication or another form of additional security offered by your bank. This will keep your account better protected from fraud.

5.  Keep in mind that fraud is a likely risk for any bank account and debit cardholder. This way, you stay on your toes for a potential breach, enabling you to be more careful with your debit card transactions.

Queensborough National Bank and Trust is your trusted partner against the threats of banking fraud. You can rest assured that QNB online banking is kept safe and secure from different kinds of fraudulent activities online, protecting clients from ever-evolving scams that keep banks and consumers alike on guard for suspicious activities that endanger finances.

6 Tips to Secure Mobile Banking Transactions

Mobile devices—especially web-enabled smartphones—have quickly taken over the tech world and the consumer market in general. Today, people rely on their smart devices for almost everything, from checking the weather to online shopping, facilitating communication, and performing all kinds of personal transactions online. Whereas people were slow to adopt other web-capable devices in the past, people have been more open and accepting of smartphones and tablets, particularly when it comes to online mobile banking and similar types of money-based transactions made online. Thanks to more robust security measures, online banking services GA are perceived to be safer by the majority of the market—hence the popularity of mobile banking apps that make it easier to complete basic banking transactions.

While mobile banking services are generally safe, it never hurts to be more careful when using mobile apps to facilitate your banking transactions. Here are tips to make sure that your online banking sessions are secure:

1. Only download banking apps from trusted sources. It is easy to create apps that look like the real deal or appear to be official and legitimate, but are actually designed merely to collect your sensitive information and use it against you. This is why it is important to make sure that you are downloading and using the right applications deployed and accredited by your bank.

2. Check app reviews before you download and use any mobile payment app. This will help you make sure that the app is reliable and well-rated by real user standards.

3. Use password protection on both your account and your mobile device. This puts an added layer of protection against anyone who might try to gain access to your banking information.

4. Send sensitive data and information over secure internet networks and connections to avoid the risk of third parties peering into your personal accounts.

5. Make sure that the website you are doing transactions with uses a secure HTTP connection. Look for the green lock symbol and watch out for the HTTPS tag on your mobile browser to ensure a secure connection.

6. Be wary of unusual, often-malicious links and never click on something you are even slightly suspicious about to avoid security risks.

Queensborough National Bank and Trust offers safe and secure online banking services GA so clients can take advantage of technology to facilitate convenient mobile transactions. With online mobile banking becoming the standard for quick and easy banking transactions, the bank is constantly on the lookout for even more safe and fool-proof ways to provide remote and mobile services to help clients manage their finances on the go, without worrying about the safety of their remote transactions. 

Staying Safe from Cybercrime: Steps to Improve Your Online Security

In the advent of online services, banks and financial institutions have embraced the use of web technologies to extend financial services online. This doesn’t come without certain risks—especially with the sensitive nature of information, accounts, and transactions that online banking entails. The good news is that safe online banking is possible if you know how to keep yourself secure and protected when conducting transactions online. Robust online banking security systems are also in place to reduce clients’ vulnerability to different kinds of online banking risks and threats:

1. Two-factor authentication systems. The best online banking services are equipped with multiple-factor authentication (some two, others more) to help keep clients safe when banking online. These systems make use of devices that generate unique codes every time an account holder logs in. Codes are valid only for limited periods of time and are required additions to standard login credentials when accessing online bank accounts.

2. Computer and device security. Consumer-end security is also crucial in keeping online banking secure. This is why it is crucial to keep the computers and devices from which you access your online banking account up-to-date with the latest software and security updates to protect yourself from vulnerabilities and more sophisticated cyber threats that are being released almost daily. With malware, keyloggers, and Trojan viruses becoming stronger by the minute, you cannot afford any holes in your security system if you want to protect your financial and personal data from unscrupulous cyber hackers.

3. Password strength. Arm your account with a strong password based on the online bank standards. Refrain from using a single password for all your accounts—while this may seem more convenient, it can also be the death of your online accounts once your password has been compromised. Make sure to use a good mixture of characters that will make it difficult or impossible for decryptors to crack your code and access your accounts without your knowledge. Avoid using common phrases or words and refrain from using your initials, name, or even your date of birth. Change your password as often as needed or as required by the online banking system.

For safe online banking, trust only Queensborough National Bank and Trust and its range of secure, easy to use online banking tools. QNB has some of the toughest online banking security protocols to help ensure your protection as you perform financial tasks and transactions online, from viewing your statements and check images to paying your bills, scheduling transfers, making loan payments, and reordering checks, among others.