A Credit Union Could Be Your Best Source For A Mortgage
Financial institutions have pulled back on mortgage lending since the housing bubble burst, but credit unions have increased their mortgage lending substantially. According to CreditUnions.com, credit unions originated 60 percent more first mortgages during the first nine months of 2012 compared to the first nine months of 2011.
While bank customers should shop around for a mortgage lender to ensure they get the lowest rates and fees, credit union members may want to check with their credit union first. Credit unions often offer lower interest rates and fees than other financial institutions, and typically work with members on an individualized basis.
Mary Waterman, lending director of the Montgomery County Employee Federal Credit Union in Germantown, Md., says credit unions can offer closing cost assistance to their members or a credit at the settlement table.
"The underlying philosophy of a credit union is people helping people," says Jeanette Mack, manager of corporate communications with Navy Federal Credit Union in Vienna, Va. "Our members are partners in our non-profit business and any fees we charge go back into the credit union in the form of reduced interest rates."
Mortgage programs"Credit unions offer every product that other financial institutions offer, including FHA and VA loans, fixed-rate conventional loans for 10, 15, 20 and 30 years and a variety of adjustable rate mortgages," says Scott Toler, president and CEO of the Credit Union Mortgage Association (CUMA) in Fairfax, Va., which supplies mortgage services to 60 credit unions. . In addition, many credit unions offer their own loan programs to meet member needs. "We offer our 'Homebuyer's Choice' mortgages with a zero down payment requirement, no private mortgage insurance and up to six percent in seller contributions for closing costs," says Mack. "We also offer refinancing on home loans up to $1 million with 97 percent loan-to-value."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV