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With rates at about historic lows again, many are looking to refinance. I use to be a big believer in the “Big Banks” for mortgages. However, this time around I am a firm believer in Credit Unions. Banks that don’t answer to Wall Street. The rates are so much better. My “Big Bank” wanted 3.5% for a 15 year fixed.
I closed yesterday at 2.875% That rate would have been .25% LESS! However, I had a 2nd equity line of credit to pay off as well. My new loan becoming a “cash-out” refinance. Who knew?
In NY there is a “mortgage tax” on mortgage loans. (Of course! Only in NY .....go figure! LoL) it’s about 1% of the loan.
It is waived if you refinance with your Current Mtg co. It was still cheaper for me to pay the tax & go with a credit union.
With rates at about historic lows again, many are looking to refinance. I use to be a big believer in the “Big Banks” for mortgages. However, this time around I am a firm believer in Credit Unions. Banks that don’t answer to Wall Street. The rates are so much better. My “Big Bank” wanted 3.5% for a 15 year fixed.
I closed yesterday at 2.875% That rate would have been .25% LESS! However, I had a 2nd equity line of credit to pay off as well. My new loan becoming a “cash-out” refinance. Who knew?
In NY there is a “mortgage tax” on mortgage loans. (Of course! Only in NY .....go figure! LoL) it’s about 1% of the loan.
It is waived if you refinance with your Current Mtg co. It was still cheaper for me to pay the tax & go with a credit union.
Just an FYI & learning experience.
I left banking (as an employer) in late 2014 for a credit union as a loan officer and don't think I will ever go back. It's a different world. The mentality is not how to get out of a mistake, but more of a focus on making the member whole. The members are our stockholders. As a nonprofit, any profits go back into the members' fees and rates. My entire office is made up of mortgage bankers (that found shelter post mortgage crisis), from senior management to secondary marketing, to underwriting, to the closers. All understand there are dates in contracts to be met. My group (a loan officer partner, loan officer assistant and processor) specialize in new construction, working with builders as an alternate approved lender, doing the loans their in-house lender cannot offer. Unlike big boxes, we don't have LOs on every corner, nor do we try to saturate the market. There are 22 of us in 3 offices covering all 50 states. It's a big territory to work. We will never be the mammoth NFCU or PFCU, and that suits me fine. I don't want 20 layers between me an the decision makers.
I left banking (as an employer) in late 2014 for a credit union as a loan officer and don't think I will ever go back. It's a different world. The mentality is not how to get out of a mistake, but more of a focus on making the member whole. The members are our stockholders. As a nonprofit, any profits go back into the members' fees and rates. My entire office is made up of mortgage bankers (that found shelter post mortgage crisis), from senior management to secondary marketing, to underwriting, to the closers. All understand there are dates in contracts to be met. My group (a loan officer partner, loan officer assistant and processor) specialize in new construction, working with builders as an alternate approved lender, doing the loans their in-house lender cannot offer. Unlike big boxes, we don't have LOs on every corner, nor do we try to saturate the market. There are 22 of us in 3 offices covering all 50 states. It's a big territory to work. We will never be the mammoth NFCU or PFCU, and that suits me fine. I don't want 20 layers between me an the decision makers.
Without going into too personal but can you explain what the difference is between compensation. You don’t have give exact numbers if you don’t want to but it is a really big difference or..?
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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We belong to two credit unions, and use them for auto, RV, home improvement and personal loans at low rates. Every time we have gotten the money the same day that we applied, without any hassle. They also pay minimal interest on checking and savings, we have both at both. Our mortgage is with a bank only because it’s from 1993, refinanced at 4% and current best at the credit unions is 3.887, not enough difference since we are selling in 2-3 years.
As the OP, I am in the process of switching the rest of my accounts to my credit union. Switching my credit card and checking account over. I had to open a savings account with a $1 in order to get my mtg & become a member. Again, All the loans that are available have much better rates than the Big Banks.
What a pleasure dealing with these NON SALES people at the CU. When I worked in a “Big Bank” MANY YEARS AGO, customers who came in looked the other way to avoid being harassed with sales pitches.
What I was EXTREMELY impressed was the amount of tellers and staff on the floor at the CU. My present “Big Bank” has 2 tellers and ONE person on the floor.
Without going into too personal but can you explain what the difference is between compensation. You don’t have give exact numbers if you don’t want to but it is a really big difference or..?
Thank you in advance
The compensation for CU is tiered, the higher the volume, the higher on the compensation, just like any lender. Where we have to make it up is in volume. Most likely, on each loan I am being paid 25 to 50 bps less than a non depository mortgage company. Very comparable to a bank. But when you are able to do a cash out at 80% LTV on a high-rise condo up to 1M at 3.125% 0 points on a 7/1 ARM,it can be like shooting fish in a barrel. Or get the same rate on 5% down up to 700K.
But, credit unions should not try to be everything to everyone. When I made the jump, I gave up most government loans. We have since added VA & FHA, but I will not originate those due to the process. If I can't do it well, I won't do it. But I have also had my best two years in 2018 and 2019. Each CU that lends in mortgages usually has one or two signature products. Both NFCU and NASA FCU have no money down up to 1M and 650K. (I send both business).
It is definitely not for everyone. My entire career has been targeting builders with portfolio money that their in-house lender could not handle. This was my perfect fit.
If you need more detail, DM me. My personal email and surfing time is limited - not daily as I once enjoyed.
I was a teller at a credit union in college and I’ve used only CUs for personal banking. We’ve used some banks for businesses we’ve owned, though. I MUCH prefer CUs. My CU in Wisconsin (UW) was the very first to notify me when my cards were being used after my wallet was stolen. The one thing I dislike about most CUs is that they are only chartered in certain counties and sometimes with membership criteria based on living within a few miles of a branch, working for a certain organization or industry, or going to school somewhere. Overall, we have had good rates on credit cards (same cash advance rate as for purchases and money goes straight into our account), we have gotten car loans we otherwise wouldn’t be able to get, no nickel and dime fees for the most part, and good customer service. Our mortgage has always been through WF and they have dropped the ball more often than not over the years. Took months for a refi to the point where they sent us a box of Omaha steaks to apologize. Lol
With rates at about historic lows again, many are looking to refinance. I use to be a big believer in the “Big Banks” for mortgages. However, this time around I am a firm believer in Credit Unions. Banks that don’t answer to Wall Street. The rates are so much better. My “Big Bank” wanted 3.5% for a 15 year fixed.
I closed yesterday at 2.875% That rate would have been .25% LESS! However, I had a 2nd equity line of credit to pay off as well. My new loan becoming a “cash-out” refinance. Who knew?
In NY there is a “mortgage tax” on mortgage loans. (Of course! Only in NY .....go figure! LoL) it’s about 1% of the loan.
It is waived if you refinance with your Current Mtg co. It was still cheaper for me to pay the tax & go with a credit union.
Just an FYI & learning experience.
I completely agree!!!
I am in the process of refinancing with a local CU
I was already in the process of refinancing with my current mortgage company which had a little lower rate than the banks I checked.
While that was going, I happened to look around again since I read up on how there is a window where multiple hard pulls on your credit for "shopping around" for a loan wont hurt your credit rating. Just so happen one of the site I checked showed the CU's rate.
I jumped on it since it was by far the lowest rate... AND no points were needed.
My mortgage company straight up told me they couldn't match it (and seemed pretty annoyed) as they were offering 3.5 with "no points" (...however the estimate showed a .5 points payment)
The CU also offers a one time chance to re-lock before the close in case rates drop even more.
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