Searching for a good mortgage can often mean trying to find the lowest interest rate possible. As the years go by, every percentage point adds up to a huge amount of money.
Dealing with the big banks can make it feel impossible to get a good rate. Adjustable APRs, unfair contract clauses, and impersonal reps can make you feel like just another number. That impersonal feeling is what's driving a historic distrust in big banks and how they operate.
Getting a mortgage through credit union reps can change all that. If you've been looking to lower your rates, keep reading to find out how a credit union can help. Then, call Coosa Valley Credit Union to get the personal touch you deserve for your mortgage journey.
How Is a Credit Union Different from a Big Bank?
Some key differences between the big banks and local credit unions can impact the interest rate on your mortgage.
Credit unions are not-for-profit, collectively run cooperatives locally owned by members. Since there aren't any shareholders to appease, credit unions are more focused on member outcomes, including maximizing returns, lowering costs, and ensuring service satisfaction.
Big banks are enormous companies, often spanning several states and regions across the country. They have thousands of shareholders who have a huge say in how the bank operates and what goals it sets year-to-year. More often than not, those goals include profit over everything else, including lowering interest rates.
In a fight between a bank vs. credit union mortgage rates, the winner is clear. Credit Unions deliver the goods.
Do Credit Unions Have Better Mortgage Rates?
Big banks are notorious penny-pinchers. If they can squeeze another percentage point out of their home loan members because of something like bad credit or rental history, they will. And they have to! Their business model is based on shareholder profit, not member satisfaction. Their executives have to pursue profit over people, or they might be fired or even face a lawsuit.
Credit unions, on the other hand, focus more on the individual than the numbers in their file. While those numbers still matter, context also matters. Your credit union is more likely to take into account your personal situation when quoting you on a home loan.
Due to their not-for-profit status, most credit unions are able to offer more competitive mortgage interest rates than their big bank counterparts. The business model isn't based on providing profit to those shareholders, freeing them up to provide lower rates to their members.
So, do credit unions have better mortgage rates? Most of the time, the answer is yes. However, individual circumstances will always dictate the rate that's offered in the end. Your rate isn't determined by a big bank's impersonal formula, it's a result of meetings with real people in your community.
What Are the Benefits of a Credit Union Mortgage?
There are quite a few benefits to a credit union mortgage that you may not be aware of. You can be sure that your mortgage through Coosa Valley Credit Union has it all, including:
- Lower Interest Rates - Because we're a not-for-profit, your home loan interest rate is based on your financial situation, not a cookie-cutter lending formula. While we still have to make ends meet, we don't have any faceless shareholders telling us to jack up the rate for no reason!
- Reduced approval criteria - We don't make you jump through all the ridiculous hoops the big banks might. Our approval criteria are realistic and driven by providing the best loan possible for you, not lining our pockets with your hard-earned money!
- Lower fees - Big banks have all sorts of hidden fees and unfair charges littered throughout the home loan process. With a credit union, the lending process is much more streamlined. You don't have to worry about random fees making your loan more expensive than it should be!
- Individual approach - A credit union doesn't treat its members like any other number on a monthly sales team leader board. Our loan reps are here to help you through the process with everything you might need. The home loan process doesn't have to be robotic, and a credit union's personal touch can go a long way.
So are credit unions better for mortgages? The resounding answer is yes!
Ready for a Better Home Loan?
Coosa Valley Credit Union has qualified representatives standing by to answer any questions you might have about the home loan process.
Lower interest rates are just the tip of the iceberg. Low fees, reduced loan criteria, low-credit approval, and a personal touch you won't find anywhere else. That's what you're signing up for when you get a personalized mortgage from Coosa Valley Credit Union.
We provide a community-focused approach to lending. As a result, we're able to do the good work the big banks won't: getting you and the rest of our members the lower mortgage rates you deserve!
If you're ready for a better way to mortgage, give Coosa Valley Credit Union a call today!