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
Even 1 step makes a difference in preparing for disasters #creditunions #NewsNow http://t.co/eFUmMJnIwA
2 hours ago
From today's @USATODAY front page, a shout out to #CreditUnions courtesy of @CUNA http://t.co/881vLPeECN
3 hours ago
Happy anniversary to the ATM! 45 years of self-service cash HT @GOBankingRates http://t.co/ycsm3GFwk5
5 hours ago
.@USATODAY print edition features #creditunion membership march to #100mm. Zoom in on lower left hand corner #NewsNow http://t.co/Xv8fyX7ces
5 hours ago
No special assessment for ASI member #creditunions in 2014. See #NewsNow http://t.co/NwL9eJwbiQ
5 hours ago