Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
NCUA offers mortgage good habits tips
ALEXANDRIA, Va. (3/4/08)—The National Credit Union Administration (NCUA) used National Consumer Week, designated as March 2-8 by President George W. Bush, as a springboard for a message to consumers about "good mortgage habits.” NCUA Chairman JoAnn Johnson, a member of the President’s Financial Literacy and Education Commission, said in a release Monday that it is crucial that consumers have useful and understandable information when making financial decisions—particularly the purchase of a home. Johnson outlined the following responsible mortgage habits for borrowers:
* Assess low fixed rates or very low payment amounts that may turn out to be valid only for an introductory period. Be aware that rates can rise substantially following that timeframe, which could substantially push up payment amounts; * Understand terms. Know that "low rate" could mean either the payment rate or interest rate. While the interest rate is the rate used to calculate the amount of interest a borrower will owe the lender each month, the payment rate is the rate used to calculate the amount of the payment the borrower is obligated to make each month. If the payment rate is less than the interest rate, interest due will not be covered and the loan balance will increase; and * Review all correspondence to ensure a lender is reputable and responsible.
Johnson noted that "financial education is an important step in helping consumers navigate the complex mortgage lending market. I encourage credit unions to continue proactive efforts to inform their members about these issues.” For more information, use the link.
Other Resources

RSS print
News Now LiveWire
FHFA today announced it's extending comment deadline for guarantee fees Fannie, Freddie charge lenders to Sept. 8.
10 hours ago
The 2014 @CUwomen Forum was held in Gold Coast, Australia yesterday during @WOCCU 's World CU Conference.
13 hours ago
.@CFPB obtains $92M in debt relief from Colfax Capital Corp. http://t.co/QPZAeCAcy2 See also: http://t.co/Kjf4HHkINW
15 hours ago
Julian Castro was sworn in as 16th secretary of @HUDgov Dept. of Housing and Urban Development Mon.
15 hours ago
.@CUNA's Chief Economist @SchenkMike talks consumer confidence--at highest levels since 2007 w/ @TheStreet @JoeDeaux http://t.co/JyoYQmhAxc
15 hours ago