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Get a mortgage from a bank or credit union

Posted on: 28th Dec, 2005 02:51 am
Mortgage loan programs available with the bank, lender, or the credit union may differ in various aspects. In order to get the best out of their services, you need to know how these organizations differ and how you can benefit.

Loan Programs:
Unlike banks which are profitable organizations serving customers, credit unions are sometimes non-profit financial institutions owned by its members. Their services are customer oriented and not aimed at raising profits. They offer loan programs only to its members. Therefore, with a credit union your search for a suitable mortgage is limited.

With a bank, your options are more varied. Because bank loans are designed to profit the institution more than the borrower, they are able to offer a greater variety of choices.

Loan closing:
When you take out a mortgage from the bank, the closing process may be shorter than with a credit union. Credit unions take a longer time to close on a loan because most of the unions do not use computerized underwriting systems to review the loan documents.

Rates and closing costs:
When you seek a mortgage from a credit union, you will have to pay lower closing costs and a reduced interest rate on the loan. Although you may have to pay a larger interest rate with a bank loan, you'll get more for your money.

Loan servicing:
With a credit union mortgage, the union officials will service the loan throughout the life of the loan. However, banks frequently sell mortgages to other lenders for a variety of reasons. This means that your loan may be handled by at least one other organization during the life of the loan, which could create a lot of inconvenience and difficulties for you that you may not have with a credit union.

Looking for a mortgage transaction with a credit union can be a wise decision if you can obtain a low interest rate. On the other hand, banks may offer a higher interest rate, but they will provide a variety of loan packages that may offset the cost. Whichever option you select, consider all the aspects of both mortgage providers and try to determine which will benefit you the most.

The information on "Mortgage from bank or credit union" as given above is very useful but can you tell me what are the products that are offered by the credit unions?

Thanks in advance,
Posted on: 28th Dec, 2005 09:12 pm

Generally credit unions offer the same products and services that are offered by the big banks. But some credit unions may not offer each and every product that are offered by the banks because they do not have that same amount on volume that the larger banks have. Banks can afford to deal with loss leaders or products that can lure customers to approach them for loans. But credit unions are interested to offer items that a majority of its members will use.

Posted on: 28th Dec, 2005 09:19 pm
may i take loan against my insurace policy max newyork life insurance
Posted on: 13th Jul, 2006 04:57 am

You can take a loan against your Permanent life insurance which accumulates tax-deferred cash amount. You may borrow up to the total cash amount by taking one or more loans. But a loan against your life insurance policy reduces the death benefits as you are required to pay the interest accrued on the life insurance policy.


Posted on: 13th Jul, 2006 05:08 am
Can anybody join a Credit Union?
Posted on: 13th Jul, 2006 04:05 pm

Under present Federal Statute, Credit Unions can't serve general public. You need to qualify for a credit union membership.

Memberships can be earned through your employer, any organizational affiliations like churches or social groups.

You can join being a resident of a county where a community chartered credit union is allowed to serve.

Posted on: 13th Jul, 2006 04:10 pm

My father is a retired Central govt employee can we get the Motgage loan rennovation of the house.
Posted on: 07th Mar, 2007 01:41 am
Hi Kranthi,

I think you are from India. Currently we do not provide home loan related services there. But we shall still look out for lenders offering mortgage for renovation in India. And, if we can get some contacts, we shall surely let you know.


Brian Dela Cruz
Posted on: 07th Mar, 2007 03:06 am
I own several rental properties and have small loans on each as well as my home. I am thinking of consolidating ALL loans, which will leave my home as well as 2 rental properties free and clear of any debts. IS THIS A GOOD IDEA? The lein will be on a rental property for $80,000 freeing up other houses and I can take off the taxes on rental property. In total it is $400 less a month (totaled) than I am currently paying for 15 years at 7.37 % through my bank. AGAIN, IS THIS A GOOD IDEA? tHANK YOU kAREN
Posted on: 02nd Nov, 2007 11:19 am

The rate of a mortgage on your primary residence will be lower than on an investment property. I can't think of any reason not to have the mortgage on your primary residence. I see this often and the benefits outway the risk as long as you make your payments on time. Often people are worried about taking a loan on their primary residence, but you are taking similar risk placing the loan on investment property.
Posted on: 02nd Nov, 2007 11:22 am

Now Credit Unions have stricter guidelines than lenders or banks. You cannot have any late payments or past due items on your credit report. Your credit score must be 700 or more.

So, when the banks or lenders will give you a loan with a 1*30 or 2*30 and a 90% LTV, the credit union will throw your 1003 in the waste basket.
Posted on: 03rd Nov, 2007 06:44 pm
hi jeanette,

i think the recent credit crisis in the us have made credit unions more strict as far as the qualifying criteria are concerned. and why only credit unions, even the lenders in general have become stricter due to the troubles they come across on account of delinquency.

i personally feel it's better to qualify at reasonable rate rather than have a late payment on credit report, get 90% ltv and then go on paying high interest payments throughtout the loan term until and unless one gets the chance to refinance.


Posted on: 05th Nov, 2007 02:07 am
is it better to get a mortgage from a credit union of from a mortgage company
Posted on: 18th Sep, 2009 06:47 am
it depends, L. what you'll find is that credit unions have a very limited scope - basically 15 or 30-year fixed rate conventional loans and maybe some adjustable rate products. what they will probably lack is fha lending capability, which is major in this marketplace. mortgage companies can offer a wider variety of choices, along the lines of "the mortgage that's just right for you."

on the other hand, a credit union may have slightly easier guidelines to meet. they may not be secondary market-oriented, meaning they will keep your loan and continue to service it as well. ask them first.
Posted on: 18th Sep, 2009 11:51 am
Most Credit Unions allow new membership by living or working in a county they service. When it comes to Mortgage or any other type of loan they are always your best bet. Credit Unions are Not for profit so any money they earn is paid back to the member not used to come up with new fees or pay high salary. Your loan will stay with the Credit Union and unlike a Big Mega Bank the president also resides in your area. If you have a issue with their open door policy within reason you can talk to him your self. So the next time you find that your credit card due date has changed without your even knowing; your interest rate has been raised due to a general rule for a lot of customer and despite you good credit ratting you are unable to keep your nice low rate. You may want to give them a try!
Posted on: 29th Nov, 2009 03:39 pm
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