If you’re looking for a mortgage to buy your first home, look beyond banks and consider your local credit union! You might be able to find lower loan rates, low or no fees and top-notch service from people who know you.
On July 7, The New York Times published an article, “Credit Unions Join the Fray,” in which “credit unions, long a source for car loans and home equity lines of credit, have become a factor in first-mortgage lending, too.”
Some great points shared in the article, including quotes from credit union executives, are:
- “We look at first-mortgage lending as an opportunity to help our members achieve the American dream of owning their own home,” said Robert Nemeroff, a spokesman for Melrose Credit Union in Queens, which is open to all. “However, we maintain prudent lending policies that by nature maintain a sound mortgage portfolio for the credit union and create a healthy borrowing situation for the member.
- “A byproduct of this philosophy,” Mr. Nemeroff added, “is the ability to offer attractive rates, thus attracting new members.” In particular, he said, lower upfront fees can reduce borrowing costs.
- For the most part, credit unions didn’t make subprime loans, said Bill Hampel, the chief economist at the Credit Union National Association, a trade group. So when others were crumpling under those loans, they kept on lending.
- And when the financial crisis halted Wall Street mortgage securitization — the system in which investment banks sliced and diced loans into securities — credit unions weren’t as affected as others. They held the loans in their own portfolios rather than sell them, and had been doing so for years.
Click here to read the entire article.
Did you get your first home loan from a credit union?