Credit Unions are Winning the Mortgage War by Offering Extremely Low Rates

Author:     Thursday, September 04, 2014 12:00 AM

What is it about credit unions that allow them to be the best type of financial banking institution? Is it their superb customer service? Is it their ability to provide a wide-range of financial products? Sure, it's all of this, but it's also the fact that they are free from federal regulations. In fact, this added bonus is allowing credit unions to win the mortgage war by offering loans with extremely affordable interest rates. Some of these rates are as low as 2.69%.

There are only two types of people who credit unions have to answer to: members and shareholders. As long as they keep these people happy, they can pretty much offer whatever types of loans that they want. And fortunately, these members tend to be quite reliable, paying back their loans on time, so it's a win-win for everyone. The credit unions are handing out loans that are of the utmost affordability, and members are saving thousands of dollars in interest.

Customer Service Always Matters

Another reason that credit unions are winning the mortgage war is because they consistently provide first-rate customer service. When members get in a jam, these financial institutions work with them to ensure that their mortgage loans won't go into foreclosure. This isn't to imply that credit union let their members skip out on payments. Instead, they use all available resources to modify a loan so that it meets the needs of a loan holder.

There Are Many Advantages

Joining a credit union and acquiring a home loan is very advantageous for numerous reasons. First of all, credit unions are essentially the same as traditional banks; however, there are areas where credit unions excel. Of course, as stated above, they provide low interest rates and top-notch customer service, and in addition, they provide:

  • Home loans with no fees
  • Easy loan modification
  • Personal service
  • Speedier closings

Types of Home Loans Offered through Credit Unions

Just like traditional banking institutions, credit unions offer a variety of home loans. And it's because of this that you can rest assured you'll be able to secure a mortgage loan that best fits your needs. From 20-year fixed rates to 30-year ARMs, credit unions are sure to boast a home loan that you'll be happy with.

Joining a Credit Union

All credit unions have their own stipulations in terms of becoming a member. It's imperative that you check with a credit union to identify any requirements that you'll need to meet. But do keep in mind that just because you don't qualify to become a member at one credit union doesn't mean you won't qualify for another.

Source: BFI