Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
CUNA economist outlines refinance strategy to IKiplingerI
MADISON, Wis. (10/21/11)--A Credit Union National Association (CUNA) economist Thursday told Kiplinger.com he has rule to help those who are deciding whether to refinance their mortgage to take advantage of near-record-low rates. To figure how many months it will take to recover closing costs, consumers should divide the costs by their monthly savings, Kiplinger said. “My personal rule of thumb is that if the reduction in payments would cover all of the costs in less than two years, the decision to refi is a no-brainer,” Bill Hampel, CUNA chief economist, told Kiplinger. “If it will take two to three years, it’s probably a good deal. If it’s much more than three or you don’t expect to own the home or the mortgage for at least five years, don’t bother.” To mitigate the impact of rate increases, negotiate caps with lenders, Jack Pritchard, chief operating officer of mtgprofessor.com, told the publication. Hampel told Kiplinger he particularly likes the 5/5 adjustable rate mortgage, a product that many credit unions offer. The rate adjusts every five years--typically with a two-percentage-point cap on the first adjustment. So during a 10-year period, the rate would average 4.5%--assuming the rate begins at 3.5% and moves up to the maximum 5.5% on the five-year anniversary, he said. To read the article, use the link.
Other Resources

RSS





print
News Now LiveWire
Construction spending drops in January, according to @CommerceGov http://t.co/W9J1mDyF8X #Market #NewsNow
11 hours ago
During Nat'l Consumer Protection Week, @TheNCUA reminds #CU members of agency resources re: rights as consumers. http://t.co/aYgW1HoDmF
12 hours ago
.@TransUnion: #millennials climbing into driver's seat with loans http://t.co/S4H9OIB3Av
13 hours ago
Breaking at #NewsNow: @CUNA backed bill introduced by @RepEdRoyce @GregoryMeeks would raise MBL cap. #CUSmallBiz http://t.co/ZDAb2UMoQz
15 hours ago
Loan growth at federally insured #creditunions in 2014 climbed to highest level since 2005, @TheNCUA reported today. Watch News Now Tues.
15 hours ago