Do Credit Unions Offer Better Mortgage Loan Rates?

You’ve set aside your starter fund. You’ve found your dream house. The next step is finding the right source for a mortgage loan. Commercial banking may seem like the straightforward choice, but  credit union mortgage loans are often your best option. If you’ve found the perfect house, here’s what you need to know about mortgage originations with credit unions and finding the low mortgage rates you desire.

Lower Mortgage Rates

All mortgages are not created equal. When shopping around, a credit union mortgage loan is often the option that’s easier on the wallet. While costs will always vary between institutions, when it comes to mortgage loan rates, credit unions often have much better rates. Credit unions are able to offer low mortgage rates, much lower than banks, because they borrow against themselves, being responsible to their own depositors vs. shareholders looking for a return.

Home Ownership Advantages and Benefits

Deciding to make the move to home ownership is a big decision and a very personal one. When buying a home, it’s important to understand why taking this step can lead to many positives for you and your family.

  • It’s the quintessential American dream. There’s a pride one takes in home ownership. And there’s something special about the close ties you make in the community you invest in.
  • Historically, homes increase in value, building equity that provides a nest egg that will allow you to upgrade in the future or to use that equity in other valuable ways.
  • Home ownership provides tax benefits. When you own your home, you may be able to deduct what you’ve paid in interest and property taxes on your mortgage. This savings can offset a portion of owning your home.
  • Versus renting, costs are generally stable and more predictable since they’re ideally based on fixed mortgage loan rates.
  • It’s your home to do with as you wish! You choose the projects, the colors, the design. The walls are yours to decorate as you wish. Having a home that’s solely yours carries with it a level of sovereignty in your castle and greater privacy to live within it as you wish as well.

Easier Loan Approval

Credit unions take a personal approach when appraising your mortgage loan situation. When you’re looking for more than the cookie cutter process of typical banks and mortgages, a credit union is where you ought to turn. The major difference is ownership since credit unions are non-for-profit institutions owned by their members. Their goal is to provide excellent financial services geared toward providing members with the lowest rates and fees.

Processes may vary some, but being a member saves time and money and the requirements tend to be similar. Beginning with an application, the following verification requirements are usually the same:

  • Identification
  • Employment
  • Income
  • Equity or a Down Payment
  • Credit History

The personal relationships credit union have with their customers afford a simple and efficient process for easier mortgage loan approval.

Credit Unions Have Fewer Fees

Because credit unions are less concerned with turning a profit, securing a mortgage with one will often result in fewer origination fees and other processing costs. These reduced fees can potentially save you several hundred to several thousand dollars.

Apply for a Mortgage Loan Today!

Purchasing a new home is one of the biggest decisions most people will make in their lifetime. We want you to be able to purchase your new home with confidence. Contact Missouri Central Credit Union and side-by-side we’ll help you through the process to find the right mortgage loan at the lowest rates and fees to make your dream home a reality!

Apply online, in person, or on the phone. Not quite ready to start the application process? Talk to our mortgage specialists today. We're here for you.