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
#NewsNow: @CFPB offers tips for consumers who think their credit/debit cards have been hacked. http://t.co/rHnfYkJPIj
9 hours ago
See who's 1st to earn @CUNA's new biz development designation #NewsNow http://t.co/vn5ch4HkRC
11 hours ago
Joe Bergeron, president/CEO of the Association of Vt. CUs, has been re-elected to the board of the @NCBACLUSA
11 hours ago
NCUA reminds: CU managers/directors looking to improve leadership skills still can register 4 Leadership Boot Camps. http://t.co/0AUtIpWNqr
11 hours ago
Australia's Customer Owned Banking Association is @fileneresearch 's latest Gold benefactor.
13 hours ago