Members of NuVision Federal Credit Union haven’t tossed aside their New Year’s resolution of saving more money this year.
When the $1.2 billion NuVision in Huntington Beach, Calif., kicked off its Switch & Save Challenge in January, the credit union came up with a goal of $26 million in member savings in 2013.
Members are well on their way, already saving more than $9 million in loan interest, according to NuVision. They’re refinancing their existing mortgage loans, auto loans and credit cards with the credit union to take advantage of lower interest rates.
“We’re amazed at how quickly our members have taken to this program,” said Teri Rapp, chief credit officer at NuVision. “Our goal is to help our members save $26 million on loans they already have.”
NuVision said the actual member savings is calculated using the member’s original interest rate and their new interest rate to calculate their interest payments using the new loan amount.
The difference in interest payments over the life of the loan is what is used in this total, according to the credit union. Loan savings calculation is also reflective of interest savings on refinanced first trust deed mortgages only, NuVision said.
Founded in 1935, NuVision serves more than 75,000 members.