Member Services:• Shared Branching• Share Savings• Checking• Home Banking• On-line Bill Pay• Mobile and Remote Deposit• Finance Works• Mobile and Text Banking• E-statements• Money Market Account• IRA Accounts• Direct Deposit• Pre-Authorized Payments• Christmas Club Account• Student Package Account• Student Choice Loans• Payroll Deductions• Personal Loans• Auto Loans (new & used)• Motorcycle & Boat Loans• Home Equity Line of Credit• Home Improvement Loans• Mortgage Loans• Share Secured Loans• Tuition Loans• Certificates of Deposit• VISA® Credit Cards• MasterMoney™ Check Cards• Property & Casualty Insurance• 24-Hour Hotline• Notary Service• Jake Jr. Account• BFCU VISA® Gift Cards

Volume 19, Issue 5

Winter 2013

BOSTONFIREFIGHTERSCREDITUNION

At Boston Firefighters Credit Union we understand you are busy, so we use cutting edge technology, so all our members can enjoy the most convenient and safe banking services available… anywhere, any time!

Not only can you do nearly all of your banking online or from your phone, but eligible individuals can even join the Credit Union online.

Now you can do almost all your banking around your schedule… and best of all, they’re all free services.*

To find out more, visit our branch or www.bosfirecu.com.

* Carrier fees may apply.

Wherever you live… Wherever you go…

BFCU is there for you!

Inside this issue:President’s Message

Borrower Beware!

Scholarship Opprtunities!

2

3

4

• Home, Mobile and Text Banking* – Open 24/7 and there’s never a line• Online Bill Pay – From your com- puter or cell phone - no more stamps• Mobile/Remote Deposit* – Get your money into your accounts even faster with your cell phone camera or a scanner• 24-Hour Hotline – Access your accounts from any touch-tone phone• Shared Branching – Access your BFCU Accounts from over 6,800 CU branches nationwide• SUM, MoneyPass and Co-Op ATM Networks – Surcharge free access to thousands of ATMs nationwide

President’s Message

December 15, 2012

Happy New Year from the Board of Directors and staff of the Credit Union. As we begin another year, it is always interesting to look back at the past and also attempt to peer into the future.

2012 presented many of our members with a tremendous opportunity to purchase a new home or refinance their existing property and in doing so, take advantage of the record low interest rates. Those of us who purchased homes in the 80s remember well the days of 15% mortgages and the accompanying payments. It makes us appreciate even more the benefit of a mortgage with rates in the 3% range. Many members obtained their first credit union mortgage during the past year. While we have been offering mortgage loans for many years, it seems as if a number of our members have realized that our concept of “Simple and honest banking” really works. The boom years saw many loans originated by brokers and large mortgage companies with no real personal service, no long-term interest in the customer, and no intent to bother with the loan after it is closed. As many members have known for years and many more learned during 2012, this is not the BFCU concept of a business relationship. We are here for the long haul. We are interested in building a permanent business relationship and we care about you and your loan; so much so that we will commit to servicing that loan for its entire lifespan.

2013 looks as if it will also provide similar opportunities for those who have not yet taken advantage of these low mortgage rates. We are continuing to look for new and creative ways to structure terms that create value for various groups of our members. Two such products are described in detail in other areas of this newsletter. They are the 5/5 Adjustable Rate Mortgage and the 100% Home Equity Line of Credit. The 5/5 is targeted toward members that have a short term horizon in their current residence and wish to create the lowest possible monthly payment with the security of a stable rate for five years. The 100% Home Equity is designed for members who have suffered a temporary loss of equity due to the market declines from 2007-2011. You now have an opportunity to borrow at Home Equity type rates without refinancing the low-rate first mortgage that you recently obtained.

While the mix of products may change in order to provide the maximum benefit to our members and to keep current with the economy, the basic concepts of the credit union remain the same. We are the only local full service financial institution that is owned and operated by firefighters. We are truly your credit union.

John B. Winne President and CEO

Annual Meeting

Save the date… The 2013 Annual Meeting will be held

on Monday, April 29, 2013 at Florian Hall

55 Hallet Street, Dorchester, MA.

Introducing the new 5/5 Adjustable Rate Mortgage

Discover the New 100% Home Equity Line of Credit

ARMs often have lower rates than fixed-rate mort-gages, allowing homebuyers to purchase more expen-sive homes or have lower payments. The BFCU 5/5 ARM features a great low rate of 3.00% (3.47% APR*).

ARMs can be a great option for you when:• Purchasing a starter home • Your income is expected to increase annually

and a low starting payment will be easier to manage for the first few years

• You may only be in the property for 5-7 years• You are including the cost of repairs,

renovations or rehabilitation into the purchase price of the home

All payment examples do not include taxes and insurance, therefore actual payment will be greater.

*Annual percentage rates effective 12/11/12 and subject to change. Other rates and terms are available and may apply based on individual credit score. Payment examples based on a loan with 0 points and 20% down payment. Closing costs apply to the above rates. All loans are subject to credit approval.

Adjustable rate and payment example is fixed for the first 5 years; then adjusts every 5 years to 3% above the monthly average yield on the 5 year U.S. Treasury Index. Interest rate cap of 2% per adjustment and 6% over the life of the loan apply.

Mortgage - 5/5 Adjustable Rate

5/5 ARM

Initial Term Rate APR

Payment Example per

$1000

Remaining Term

Fully Indexed

Rate

5 Yrs 3.00% 25 Yrs 3.625% 3.47% 60 monthly

payments of $4.22

300 monthly payments of

$4.51

Housing values do seem to be coming back up. Still, a lot of people have access to less home equity because their home values have decreased. BFCU’s new 100% Home Equity Line of Credit can help by allowing mem-bers to borrow up to the full appraised value of your home, minus the amount of any existing mortgages.

Borrower Beware!

Maximum borrowing amount is $175,000 based on 100% loan-to-value. Minimum initial advance is $5,000. Subsequent minimum advances are $2,500. Minimum payment will be calculated on a 10 year amortization schedule. Variable APR is subject to change without notice. Maximum APR is capped at 16.00%. Minimum APR is 5.50%. Insurance is required. No pre-payment penalties.

The annual percentage rate is based on the value of an index. The index is the prime rate published in the Money Rates column of the Wall Street Journal. When a range of rates has been pub-lished the highest rate will be used. We will use the most recent index value available to us as of 1 day before the date of any an-nual percentage rate adjustment.

Rate effective December 1, 2012.

Home Equity Line of Credit - VariablePayment Example

per $1000Rate APR

Based on 10 year amortization schedule 5.50% 5.50% $2.50/week

automatically and threatened to sue borrowers or have them arrested for non-payment.”

The Consumer Federation of America recently surveyed online payday loans and found that the typical cost of a two-week $500 loan is $125, or a whopping 652% APR.

The Better Business Bureau recently reported that one of these lenders was offering a $5,000 loan, loan fee ($75) at an APR of 116.73% for 84 payments of $486.58 each. To repay that $5,000 loan would cost you $40,872.72.

Please come to your Credit Union before you go to one of these organizations. Together we can talk through your situation to find your best alternatives.

We’ve all seen the brightly colored e-mails or late night television commercials offering “Cash in your bank account by tomorrow morning.” Commonly known as Pay Day Lenders, these organizations specialize in making short-term loans - supposedly to get someone by for two weeks until their next paycheck.

These payday loans are notorious for outra-geously high interest rates. The true costs are often hidden in fine print or in many cases even lied about. The Federal Trade Commission recently sued several payday loan companies for “lying about interest rates, requiring borrowers to let the company take money out of their bank account

BOSTONFIREFIGHTERSCREDITUNION

Hours of Operation: Contact Numbers:Monday, Tuesday, Wednesday and Friday:

8:30a.m. to 3:30p.m.

Thursday:

8:30a.m. to 7:00p.m.

Saturday:

8:30a.m. to 12:30p.m.

Main Phone: 617.288.2420

1st Floor Fax: 857.220.2158

2nd Floor Fax: 617.288.8750

The Hot Line: 617.288.BFCU (2328)

Out of Area: 877.288.BFCU (2328)

Lost VISA Card: 1.800.449.7728

Lost MasterMoney Card: 1.800.264.5578

www.bosfirecu.com

Joseph Nee, Maint. – RetiredChairman of the Board

Sean P. Costello, L-19, Gr. 2Vice Chairman

Joseph Finn, D-1, Gr. 2Treasurer

Edward Paris, Jr., E-18, Gr. 1Clerk

Larry Brennan, E-14, Gr. 3Charles M. Buchanan, Jr., E-24, Gr. 1William G. Dewan, E-10 – RetiredNick DiMarino, TL-10Ralph Dowling, FAO, Gr. 2Robert Ford, L-29, Gr. 1Richard T. Kelleher, FAO – RetiredThomas W. Matthews, HQ – RetiredTom McCann, E-39 – RetiredGeorge Patukonis, TrainingEdmund M. Street, L-18 – Retired

Board of Directors

Martin Luther King Day January 21st

Presidents’ DayFebruary 18th

Patriot’s Day

April 15th

For product information, home banking, bill pay and more.

Consumer Loan Interest Rates*

*APR = Annual Percentage Rate. Rates reflect a .50% discount for automatic payments from your BFCU account. Rate may vary based on terms and individual credit scores. **This rate does not apply to the Student Choice private loan.

Loan Type APR

Auto (new or used) 2.49% - 9.99%

Personal 7.99% - 14.99%

Tuition

Home Improvement

6.99%**

7.49% - 8.99%

Boat (new or used) 7.99%

Holiday Closings:

Visit Us at:Bosfirecu.com

Scholarship Opportunities!Once again, BFCU is pleased to announce we’ll be giving away four schol-

arships at the Annual Meeting in April. Two $2,000 college scholarships and two $1,000 high school scholarships. In addition, the Credit Union League offers a $1,500 scholarship for high school seniors.

All applications will be available in our lobby starting Tuesday, January 22nd. The Credit Union League application is due back by Friday, March 1st. The BFCU applications are due back by Friday, April 12th. Our winners will be announced at our Annual Meeting on Monday, April 29th. If you have any questions, please contact Kristen Russell at 617-288-2420, ext 143.