“We’re in the middle of a very dark tunnel,” said Brian Fabbri of BNP Paribas, as quoted in the Wall Street Journal article: Economists Expect Crisis to Deepen.
It’s been a whirlwind the past couple of weeks for consumers: First the collapse of Lehman Brothers, followed by AIG (American International Group), and ending with possibly one of the worst weeks in the stock market since 2004. After President Bush’s speech to the nation Sept 24, 2008, leading into a Congressional debate about the $700 Billion Bailout, the stock market slowly regained composure. As quickly as the first billion- dollar bailout was vetoed, the stock market dropped by 500 points.
With the stock market playing Russian Roulette with investors’ money, you may be thinking about hiding what little money you have left in a hollowed -out mattress.
For some, a hollowed- out mattress may be a step in the right direction. But for most, it’s an unrealistic idea. While the Credit Crunch bears down on NH, consumers are tightening their budgets, searching for the best deals and taking a second look at their financing options.
With creative financing on home loans mostly behind us, realtors are leaving the task of securing financing to the buyer. If a consumer is in the market to purchase or refinance a home, where does one go these days?
New Hampshire’s credit unions are rapidly growing and continue to produce consumer loans daily. Although the credit crunch is close to home, loans are still available. Home Loan rates are highly competitive even compared to larger lenders. And, with most NH credit unions your mortgage portfolio will not be sold. Also:
- Most credit unions did not participate in the Sub-Prime Mortgage craze.
- Credit Unions cannot invest in the Stock Market and Federal CU’s cannot invest in Corporate bonds.
- Credit Unions are owned by the members (share holders), meaning that the income earned is given back to
members through higher dividend rates and lower interest rates on loans.
- As an added bonus, the NCUA (National Credit Union Administration) has increased Share Deposit Insurance
to $250,000.00 per individual through December 31, 2009.
Posted by Craig Richardson on 10/16 at 02:55 PM