A Better Advantage With Credit Union Mortgage Loans

Amidst the topsy-turvy spiral of mortgage lending, most borrowers feel as though they need to hire a team of expert finance and legal consultants before pursuing a mortgage loan. Who can blame them? From the unintelligible disclosures to the twists, turns and requirements presented during processing, borrowers must approach the loan process with an eagle eye on the bottom line. Getting the most bang for the bucks.

After the wave of borrowers lost their homes in the fiery ashes of mortgage-gate, many prospective homeowners are hesitant about mortgage loans in general. Adding fuel to this fire are unattainable rates, poor servicing and being subjected to polices that serve the lender, but not the borrower's needs.

Credit unions are showing that there’s a better way to bank with several distinct mortgage loan advantages;

• More flexibility when locking in rates. Published mortgage rates can be locked for 45 to 60 days without a fee, when most banks quote 15 or 30 day rates.

• Credit union mortgage rates are better than those of other lenders because the company does not build a profit margin into its loans.

• Most credit unions do not have prepayment penalties on mortgage loans and do not charge origination points, unlike commercial lenders.

• Credit unions have more flexibility of approving loan applications.

• Credit unions can charge lower rates than conventional lenders because they are nonprofit institutions.

• Credit unions can save hundreds in closing costs by eliminating or decreasing many of the usual fees.

Service, low closing costs and mortgage rates are the differentiating factor among lenders, not to mention trust. Credit unions have a stable, reputable status and are not marred by the economic mess created by commercial lenders. A strong point when deciding whom you should submit an application.

These loans, which are available to anyone who meets a credit union’s membership terms, are not typically marketed, yet they have grown increasingly attractive during the last year.

Time to Compare Lenders

Many people will tell you they’re too busy to switch banks or comparison shop. Well, start with a quick call to your current financial institution and check to see if they are willing to decrease some fees and sweeten the deal for you. We are dealing in tough times and with the current economic demise, banks should be on the lookout to keeping customers happy. If they are unwilling to budge, it’s clearly time to shop around.

You can search for credit unions in your region at asmarterchoice.org, the website run by the industry’s trade association.