Credit Unions Get More Respect, for Mortgages
A new article explores the benefits of getting a mortgage through a credit union. This is timely, since CUs are growing as a force in the mortgage market.
The article, from Trulia at Money magazine, is generally positive about the mortgage process at CUs.
It opens with the line, “Credit unions have historically offered lower mortgage rates and closing costs than traditional lenders.”
This is true: CUs offer better rates and lower fees on a wide range of loan products. Mortgages are just the latest growth area for CUs.
Trulia goes on to tout CUs for offering personalized service, a nonprofit business model and speedy closings – in additional to better rates on mortgages.
However, these Pros and contrasted with Cons including eligibility (you have to join a CU), limited loan choices and tough qualifying.
Keep in mind that CUs are looking after their members’ money, and therefore follow responsible lending practices. Certain types of “exotic” mortgages often aren’t available through CUs, and not everyone can qualify.
This can frustrate some consumers, but it helps keep CUs safe. It also keeps the financial system as a whole safe. Keep in mind that CUs did not cause the financial crisis, unlike banks.
Despite these responsible restrictions, CUs are growing in the mortgage game. In fact, a recent report from Callahan & Associates said that credit unions generated $62.6 billion in first mortgage originations during the first half of the year. That’s a 1.7 percent annual increase and the most loaned out since 2013.
Read Trulia’s full article HERE. Share it with friends and family who are considering a mortgage.
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