September e-News

Washington Trust Plans Community "Drives" in October

Beginning Monday, October 26th through Friday, November 6th Washington Trust will conduct a food drive to benefit the RI Community Food Bank, and local food pantries throughout Rhode Island and Connecticut. Employees and customers are encouraged to bring a non-perishable food item to any branch office.

All Washington Trust branch offices will also collect used and unwanted cell phones through the end of October to support Domestic Violence Awareness month. The phones are recycled, reused, and used to raise funds for the Domestic Violence Resource Center of South County and their programs. We hope you will enjoy this month's eNews and welcome your comments and suggestions.

November opening planned for new Governor Francis branch in Warwick!

Our new branch at 1473 Warwick Avenue will be opening soon, and we look forward to meeting our new Warwick neighbors. Look for information on our Grand Opening Celebration and a special Refer-A-Friend offer coming soon!

For more information, contact Branch Manager Vanessa Zampini vozampini@washtrust.com at 401-921-2500.

Hurricane Season - Are You Financially Prepared?

Fall in New England means the possibility of hurricanes, so it's more important than ever to have what you need to conduct your day-to-day financial life in the event you are separated from your home, even temporarily. The FDIC (Federal Deposit Insurance Corporation) (link) suggests having the following documents and other items in a secure place and readily available in the event of an emergency:

• Forms of ID - copies of driver's licenses, insurance cards, Social Security cards, passports, and birth certificates
• Checkbook - with enough blank checks and deposit slips to last at least a month
• Cash Cards - ATM, debit, and credit cards
• Cash - Enough for several days expenses
• Phone Numbers - local and toll-free numbers for your bank, credit card companies, brokerage firms, and insurance companies
• Account Numbers - bank and brokerage account numbers, credit card numbers, and homeowner's insurance policy numbers
• Key to Your Safe Deposit Box - Make sure it is in a safe place where you can access it easily.

Emergency Preparedness is not just for Hurricane season. Here are a few tips for preparing for Floods, Fires and Other Disasters:

Have forms of identification readily available in an emergency. These primarily include driver's licenses (or state ID cards for non-drivers), insurance cards, Social Security cards, passports and birth certificates. Originals are best, but copies are better than nothing. According to The FDIC's Community Affairs Officer in Dallas, Louisiana residents without a driver's license or state-issued picture ID after the hurricanes had problems getting financial assistance from FEMA (the Federal Emergency Management Agency) because they could not prove who they were.

Prepare one or more emergency evacuation bag. Use them to store first aid kits, prescription medications and other items needed for personal safety, but also include essential financial items, such as cash, checks, copies of your credit cards and identification cards, a key to your safe deposit box, and contact information for your financial services providers. The bags should be waterproof, easy to carry, and kept safely at home (but in a place you'll be able to remember and access in an emergency).

Review insurance coverage. Families should have enough insurance, including flood insurance, to cover the costs to replace or repair a home, car and other valuable property.

Savings - Commit to a savings program that includes building a "rainy day" fund. Everyone should save for long-term needs; they also should put aside money in an emergency fund that can be tapped to get through difficult times -- anything from a natural disaster to a job loss or medical emergency -- without having to take out a loan or borrow from retirement accounts. This special fund, which can be built up gradually in various types of savings accounts, eventually should equal to about three to six months of living expenses. It becomes your own financial insurance policy. And if you never use it, you will have that much more money set aside for emergencies.

Are You Considering Refinancing Your Home Mortgage?

The changing interest rate environment has enabled many homeowners to reduce their monthly mortgage payments by hundreds of dollars. For others it has prompted them to consider a different type of mortgage to match their lifestyle.

Should you refinance your home mortgage?
Housing costs are one of the largest components of most household budgets. With interest rates changing so frequently, you should periodically review your current loan to determine whether refinancing at current interest rates would save you money.

To determine whether you should refinance, you need to compare the costs of obtaining a new mortgage with the savings you will enjoy with a reduced interest rate. You may also want to consider refinancing to a different type of mortgage, such as switching from a 5/1 ARM to a 15- or 30-year fixed rate mortgage.

Here is an example and a worksheet to help you determine if refinancing makes sense for you. You may want to print this article and use the worksheets. Please note: the figures used in the example are for demonstration purposes only.

Rob and Karen bought a home 3 years ago for $300,000 and they have 2 years remaining before their mortgage rate adjusts. Their original loan amount was $200,000 with a mortgage rate of 6.75%, and monthly payments of $1,297.20. They intend to live in their home for several years and would like to lock in a 30-year mortgage with a 5.50% fixed rate.

Rob and Karen's Example
New Mortgage Costs Discount points (in $) $ - Origination points (if any) $ - Underwriting fee $ 195 Credit Report $ 21.70 Tax Service fee $ 77 Flood Cert $ 14 Attorney fees $ 600 Title insurance fee $ 550 Appraisal fee $ 300 Document prep $ 319 Local fees (taxes, transfers) $ 240 Other fees $ 50 Total cost of new mortgage $ 2366.70	Calculating the Savings Monthly payment on current mortgage $1297.20 Monthly payment on new mortgage $1112.87 Difference between two mortgage payments $184.33 Divide total fees on new mortgage by monthly savings - This is the number of months to recover your costs. 13 months

In this example, Rob and Karen would save almost $2,212 annually in mortgage payments and lock in a 30-year fixed rate mortgage. Over the course of the mortgage they would pay about $22,000 less in total interest.

To find out if refinancing is right for you, just enter your information into this convenient calculator:
Refinance Calculator

When reviewing the feasibility of refinancing, you may also wish to consider refinancing a larger or smaller amount than the current balance of your mortgage. If you have excess funds available and believe you will have a hard time earning a return greater than the mortgage rate, you may want to pay down your mortgage and get a new mortgage that is smaller. If you have other liquidity needs, you may want to refinance a larger amount to free up some of the equity in your home.

Remember that mortgage interest is tax deductible if you itemize your deductions on your tax return. Consult your tax advisor to see how this may apply to your situation.

No interest rate environment lasts forever and there is no crystal ball that will tell you when rates have reached their lowest level. Taking action now to evaluate whether refinancing now makes economic sense and evaluating the type of mortgage you want, can help you be in control of one of your largest household expenses. Contact us today or click here to find a mortgage specialist .

Washington Trust "Stars" will appear at
Roger Williams Park Zoo Jack-O-Lantern Spectacular

Every Thursday evening from October 8th - November 1st, is “Washington Trust Night” at the Jack-O-Lantern Spectacular! Meet the "stars" of Washington Trust and play some Trick-or-Treat Trivia along the trail for a chance to win great prizes. We'll see you there!

 

Going Green Tip:  Reduce Unwanted Catalogs Before the Holidy Deluge Fills Your Mailbox

More than 53 million trees are consumed each year to produce paper catalogs. The production of all those catalogs results in 56 billion gallons of wastewater. And when all those catalogs are thrown out it's approximately 4.1 million tons of waste, equal to the annual waste of 2 million households. An emptier mailbox means less pollution, less waste and less of the emissions that cause global warming. Rather than spend a morning calling companies and asking to be removed from their mailing lists, go to www.catalogchoice.org and spend 10 minutes selecting the catalogs you don't want to receive. Catalog Choice will contact the merchants for you and they'll stop sending you catalogs you don't want!
(Information courtesy of the RI Audubon Society )