Over the years, the credit union and its members have successfully navigated numerous economic challenges. Recent news reports speculate whether the drop in real estate value is a "meltdown" or "adjustment", and whether a large number of Adjustable Rate Mortgage (ARMs) rates that are scheduled to adjust upwards in 2008 will trigger a significant increase of foreclosures. Because of this, California Coast Credit Union and all reputable lenders encourage homeowners to contact their mortgage holder and discuss options 60-90 days prior to any scheduled rate or payment changes. Too often people in financial trouble wait until the last minute to call their lender. The truth is: the longer you wait, the greater your chance of losing your home.

Substantial payment increases can often be avoided by refinancing ARMs into long-term fixed rates. For example, California Coast’s No Closing Cost Home Loan affords refinancing up to $1 million at no cost with fixed rates up to 40 years. California Coast will make every effort to work out a reasonable repayment plan and modifications will be granted on a case-by-case basis, but the best terms may not be available after default.

Recently, President Bush announced a plan to fix interest rates on some Adjustable Rate Mortgage (ARM) loans that originated January 2005 through July 2007. Bush specifically addressed loans that were sold by lenders and placed into loan pools called "securitizations." The rules for homeowners to qualify are complex. While it's not clear how many will actually benefit, early estimates indicate relatively few will qualify.

California Coast Credit Union mortgage loans were not placed into these securitizations and will not participate in the rate freeze plan. California Coast is a financial institution that provides financial education as well as financial solutions that are in the best interest of our members and is ready to assist members in need wherever possible.

As a not-for-profit financial institution, California Coast exists solely to serve its members and their families. Unlike other financial institutions that answer to profit-seeking shareholders, credit unions return their profits to members in the form of enhanced services, reduced fees, lower interest rates on loans, and higher earnings on savings and investments.

For over 75 years, California Coast Credit Union has been providing personalized caring service and quality, low-cost financial products to our members. Founded in 1929 by several local teachers, the credit union continues to place a high importance on education through various community partnerships.

California Coast Credit Union appreciates the trust and loyalty of its members and is here to help. For additional information please call (877) 4 Low Loans (877-456-9562) or visit www.calcoastcu.org.