Five Benefits of a Credit Union Mortgage

When it comes to mortgages, credit unions offer several distinct advantages over big banks and other lending institutions. At KeyPoint Credit Union, our home loans meet the needs of our members. Our goal is to help you purchase the home you love, at a rate and monthly payment amount that’s comfortable. Here are five primary differences you’ll find between our mortgages and the competition: 

1. Lower Rates

A credit union is owned by its members. If you’re not already a member, you become a member when you get a mortgage loan through KeyPoint. Credit unions are not-for-profit, which means that we can use part of our profits to offer lower mortgage rates and fees to our members. According to the NCUA’s June 2017 data, the average interest rate for adjustable and 15-year fixed mortgages was lower at credit unions versus banks. Visit KeyPoint’s handy online mortgage estimator to view our current rates and see how they compare.

2. More Flexibility

Credit unions often offer multiple loan and refinance options to suit members’ needs and situations. KeyPoint’s home loan terms range from 15 to 30 years, with fixed and adjustable options. Members can refinance to reduce their monthly payments, refi to change the type of loan they initially received (fixed vs. adjustable), or opt for a cash-out refinance to get extra money for renovations, bills or other life expenses.

3. Options for First-Time Buyers

New buyers may have difficulty financing a home, especially in the Bay Area or Silicon Valley where high pricing can make coming up with a 10-20% down payment difficult. Credit unions often have programs designed to help first-time buyers break into the market and secure a starter home. KeyPoint’s home loans include low down-payment options where buyers can put down as little as 5% on their new home (15% for jumbo or high-balance loans). Another alternative for new buyers is an 80-10-10 “piggyback” mortgage. With this loan, homeowners get two mortgages to avoid having to pay private mortgage insurance (PMI), as long as they put at least 10% down.

4. Local Service

Many bank mortgages are serviced out-of-state, or later sold to other financial institutions. In contrast, credit unions are often community based and locally serviced. For example, KeyPoint caters to members in the Bay Area and Silicon Valley, and throughout California. Members receive personalized service at any of our local branches, online or by calling our toll-free number.    

5. You’re Not Just a Number

It can be frustrating to communicate with a big bank about your mortgage loan. Credit unions strive to provide individual attention. Loan officers get to know each applicant by name, and can answer any questions you have about mortgage and refinancing possibilities.  

Low rates, personalized service and multiple loan options are just a few of the reasons to get your mortgage through a credit union. At KeyPoint, our dedicated loan officers will help guide you through the process of applying for a home loan or refinance. Whether you’re a first-time buyer looking to purchase a starter home, a family looking to move up or a seasoned pro adding a third condo to your rental portfolio, we can help find the home loan that’s right for you. For information or to apply for a mortgage, call 408-731-4278, click here or visit your local KeyPoint Credit Union branch.