In terms of loans, credit union Mortgage have numerous advantages over large lenders and banks. Credit Union offers home loans. Home loans satisfy the needs that clients have. The aim is to help purchase the client’s home, with an interest rate and monthly that is comfortable. There are five main distinctions the client notice in our mortgages compared to the other mortgages:
- Lower Rates
Credit unions are owned and operated by their members. If the client’s still not an active member, the client can be a member once the client obtains a mortgage loan. Credit unions are not for profit, and therefore, we can use a portion of our earnings to provide lower rates on mortgages and charges on behalf of our clients. The NCUA’s data from June 2017 showed the average interest rate for fixed and adjustable 15-year mortgages was lower in credit unions than banks. Check as a mortgage calculator to see current rates and find out how they are compared.
- More Flexibility
Credit union mortgages typically offer a variety of refinancing and loan options to meet members’ needs and circumstances. Home loan terms vary between 15 and 30 years. They offer variable and fixed phrases. Members can refinance to lower their monthly payments or refinance to modify the kind of loan they were initially provided (fixed of. variable instead) or choose cash-out refinances to gain more money to pay for bills, renovations, or other expenses of life.
- Alternatives for Buyers who are First-Time
The first-time buyers might have difficulty financing their home, particularly those in the Bay Area or Silicon Valley, where the high cost of houses can make 10% to 20% down payments difficult. Credit unions typically have programs that first-time aid buyers get into the market and get the first home of their dreams. KeyPoint’s home loans offer the option of low down payments where buyers can make a down payment as just 5% of their new residence (15 percent for jumbo and the high balance loan). Another option for buying their first home is to take an 80-10-10 “piggyback” mortgage. Through this mortgage, homeowners can get two mortgages and do not have to pay for private mortgage insurance (PMI) in the event of a default if they have a minimum of 10 percent down.
- Local Service
Many bank mortgages are administered outside of the state or sold later by other institutions. Contrarily credit unions are typically local-based and have local service. For instance, Key Point caters to members of California’s Bay Area and Silicon Valley and throughout California. Members get personalized service in one of the local branch locations on the internet and by calling us at our toll-free number.
- The client’s More Than Just A Number
It can be challenging to talk to a large bank regarding the client’s mortgage. Credit unions aim to give personal attention to each customer. Loan officers can get acquainted with every applicant’s name and answer any questions the client may have regarding mortgage or refinancing opportunities.
The low rates, the personal service, and a variety of options for loans are only some of the reasons to apply for a mortgage with an institution like a credit union.
Loan representatives for Credit union Mortgage will guide the client through the home loan or refinancing application process. For example, suppose the client’s a first-time homebuyer seeking a starter home. In that case, a family wants to make a move or a veteran looking to add a third condo to the client’s portfolio of rentals; they can assist the client in finding the right home loan.