Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Carefully consider nontraditional mortgages, Schenk tells Fox Biz
NEW YORK (7/3/14)--Even with historically low interest rates, a traditional mortgage just won't work for some potential homeowners. In those cases, there are options, but ones that should be carefully considered, Credit Union National Association interim Chief Economist Mike Schenk told Fox Business Wednesday.
 
Consumers can look to borrowing funds from a family member or their own 401(k) or consider a lease-to-own type of contract.
 
Schenk advised borrowers to do their homework because "in some cases ... the transactions can be complicated and confusing."
 
Wannabe homeowners may be tempted to tap into a retirement account to cover a down payment, but Schenk said, that's "almost always a bad idea." Early withdrawal penalties and a less stable retirement situation could be the consequences.
 
Other experts suggested the debt averse could take out a loan against the principal of a life insurance policy or lease-to-own contract in which residents pay the owner each month. The ultimate option for those who don't want a mortgage loan is to save up and pay cash.
 
To read the full Fox Business article, use the resource link.
RSS print
News Now LiveWire
The 2014 @CUwomen Forum was held in Gold Coast, Australia yesterday during @WOCCU 's World CU Conference.
1 hours ago
.@CFPB obtains $92M in debt relief from Colfax Capital Corp. http://t.co/QPZAeCAcy2 See also: http://t.co/Kjf4HHkINW
2 hours ago
Julian Castro was sworn in as 16th secretary of @HUDgov Dept. of Housing and Urban Development Mon.
2 hours ago
.@CUNA's Chief Economist @SchenkMike talks consumer confidence--at highest levels since 2007 w/ @TheStreet @JoeDeaux http://t.co/JyoYQmhAxc
2 hours ago
RT @CUNA: .@CUNA's Jeremy Dalpiaz congratulates @reppittenger on reg relief bill consideration after @FinancialCmte markup http://t.co/9JMG…
2 hours ago