Written By: Glenn Michaels
For years most mortgages were obtained from mortgage companies and banks. Now credit unions are heavily involved in the mortgage market.
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My wife and I belong to two different credit unions on Long Island. The two credit unions that we belong to are offering mortgage loans that are equal to or better than the banks and mortgage companies in my area.
A competing credit union on Long Island has been advertising for all kinds of mortgage help as their volume of business has sky rocketed and they cannot keep up with volume of business.
In the local newspaper credit unions were advertising thirty (30) year fixed rates as low as 3.00%. Others are advertising very attractive adjustable rate loan programs.
Why go to a credit union? Credit unions pride on the fact that each customer is a member of the credit union, not a customer. Most are small enough to give excellent service to the members.
The funds held by a credit union are insured by the National Credit Union Association (NCUA) up to $250,000.00. Credit unions offer the same services as a bank with fees far lower than a bank.
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The credit union that I have a checking account requires $5.00 to open and to maintain the account. The average commercial bank in my area require balances of $5,000.00 or more to obtain free checking. My credit union requires $5.00.
Credit unions offer everything that a bank offers; however their rates are usually better than a bank, now they are offering mortgage products equal or better than a bank.
I was once an employee of a national bank and had balances in the thousands to obtain favorable rates. Now by belonging to a credit union I do not need substantial balances to maintain an account. I like being “king” with my money.
The credit unions in my area are offing FHA, VA, Conventional mortgage loans, excellent Home Equity Lines of Credit Loans and great rates on automobile loans. In addition my credit union is now offering business accounts and the business services that business people desire.
A mortgage loan application is a mortgage loan application to some people. Credit unions have approved people that may not be approvable elsewhere in order to help a member.
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After Super Storm Sandy my credit union offered members $20,000.00 to assist in repairing their homes at a rate of 1.00% (almost free money). Why go to a bank?
About The Author
Glenn Michaels - As an NAMP® staff writer, Glenn Michaels is a mortgage underwriting instructor for Mortgage Underwriter University (www.MortgageUnderwriter.org). As a BBA & FHA DE Underwriter, Glenn is a Pace University graduate who also graduated from New York University’s School of Mortgage Finance. Glenn has conducted numerous training classes and has worked in the mortgage banking industry for 38 years. If you're interested in becoming a writer for NAMP®, please email us at: contact@mortgageprocessor.org.
