Home Express

  • Bank Independent wants to help you save for a home by providing special accounts paying rates equivalent to Wall Street alternatives.*



       

    Program Description
    Bank Independent has created a home funding program with good growth potential and safety of your principal. First, let’s start with why you need to save.


    Buy vs Rent Comparison
    Ginnie Mae (an entity that places government guarantees on qualified mortgages) has created an illustrative chart demonstrating a cost comparison for a renter and a homeowner over a seven year period. Because mortgage interest is generally tax deductible, a mortgage payment generates tax savings that may be returned after your annual tax filing (consult your tax advisor).

    • Rent Payment: The renter starts out paying $800 per month with annual increases of 5%.
    • Comparable Mortgage Payment: The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000**. With the tax savings of homeownership, the homeowner’s payment is less than the rental payment after 3 years.

     Mortgage vs Rent
     Ginne Mae 2012

    Home Ownership also provides the opportunity to

    • Build equity
    • Eliminate rent increases
    • Eliminate being evicted when the landlord decides to repurpose or re-rent the property

     

    How to Save
    Here’s an example showing how a little savings each month can add up to a down payment.

    Saving for a Home
    Growth of a $100 or $250 monthly contribution to 2 year time deposit paying .71% APY (Annual Percentage Yield) compounded annually. The rate as of 7/15/2012 and subject to change. This example assumes an initial deposit of $1.00. Rates may change after account opening. No minimum balance is required to earn the APY. A penalty may be imposed for early withdrawal.***

     

    Customization Options
    The Home Express program allows you to save a moderate amount from your checking each month for placement in a Premier Money Market Account or Premier Growth Account. While you can customize the program to fit your needs, here are common choices.

    • Buy Very Soon (within 2 years) – Many people choose our rapid option to buy a small house or townhome ASAP. Their thought is to obtain the tax benefits and potential equity appreciation as soon as possible, and tradeup in the future. These potential homeowners choose to have their money automatically transferred from checking to our Premier Money Market Account paying rates similar to Wall Street Money Funds* (compare our rates by visiting iMoneyNet.com).
    • Savings For Just the Right Place (from 2-5 years) – Other people choose to take their time and find just the right home for a lifetime stay. These potential homeowners choose to have their money transferred automatically from checking to our special Smart Growth Account that adjust with market rates automatically for a longer term deposit.


    Checking Choices
    You can fund your Home Express account from any Bank Independent checking. Note that some plans even waive the monthly service fee based on the amount saved monthly.



    Your Growth Choices
    Here is more information on the growth accounts from which you can choose to have your money placed. Note that you can make future changes at your option. Plus, these accounts allow you to make extra deposits at any time. So you don’t have to rely on your monthly savings alone to reach your goals.

    • Premier Money Market Account – Bank Independent monitors market conditions such as leading money market mutual funds on Wall Street. We then set the rate to be competitive with these accounts. With this option, you can choose to move the money to a Premier Growth Account if that rate is higher. Note that no checks are issued with this account.
    • Premier Growth Account – Bank Independent monitors FDIC Insured Certificates of Deposit (CDs) and other market rates in setting a competitive rate for the term of the account. You can choose terms of 6 months to 5 years. This account renews automatically. Note that if you withdraw the funds prior to the account’s maturity, it may be subject to a substantial interest penalty. 


     * Compare our rates to non-FDIC alternatives by visiting iMoneyNet.com. There you’ll find iMoneyNet Money Fund Averages that reflect the average return of US money market mutual funds. You can also review the top 15 retail funds individually. Either way, you’ll find that our FDIC insured money market accounts and CDs provide competitive returns - with the added safety of FDIC insurance.

    ** For a complete example, visit: www.ginniemae.gov/rent_vs_buy/rent_vs_buy.asp A $1,000 mortgage payment is published by Ginnie Mae for comparison purposes only and does not correspond to any rate or term.

    *** Fees may apply depending on the account you have chosen to open at the bank.