There are several advantages to mortgage refinancing with a credit union instead of your local bank. High interest rates, restrictions, and poor customer service are often associated with banks, which are often more focused on investors than customers. Credit unions can help people with financial imperfections get their mortgages refinanced with lower interest rates, leniency, and even set up practices to build their credit scores. Here are a few ways credit unions are the better option to refinance your mortgage.
Easy and Simple Approval Process
It is much easier to get approved for a mortgage through a credit union than a bank. The rules for credit unions are less restrictive than financial institutions, so they are better able to help clients with low credit scores and past loan defaults. Credit unions are more approachable than traditional banks, and they can cater to union members and specific types of employees who require special leniencies or extensions on loans. Credit unions tend to provide better customer service than banks, although smaller banks do offer better service than larger financial institutions.
Lower Interest Rates and Refinancing Fees
The interest rates on deposits are usually higher at credit unions, and they offer lower rates on loans and fees because they pass on the savings to their members. The main goal of banks is to generate revenue for investors while credit unions are all about the customers.
Raise Your Credit Score
Credit unions help improve credit scores by offering low-cost secured loans, credit counselling, and online debt management courses. Instead of generating high fees for these services, credit unions work with their clients to develop processes that gradually improve their scores. Applying credit builder loans and establishing credit with secured cards are two practical ways credit unions can help clients achieve a terrific credit score.
Variety of Refinancing Solutions
Customers who already have a mortgage loan through a credit union can easily refinance their mortgage. Even if you are sending monthly mortgage payments to your bank, financing with a credit union is still possible. There is no obligation to work with your present mortgage servicer.
Favorable Mortgage Loan Interest Rates
Credit unions offer lower interest rates on mortgages but offer a limited selection of loan products. Banks, however, can offer a wide variety of loan products, but their interest rates are higher. Banks quickly sell off their mortgages while credit union mortgages remain with their unions for a very long time. If customer service through the life of your mortgage is more valuable to you, a credit union is the best option.
Use LUSO Federal Credit Union to Help You Meet Your Future Financial Goals
LUSO Federal Credit Union is a not-for-profit, member-owned financial cooperative dedicated to providing members with quality financial services and products. We at LUSO pride ourselves on serving the financial needs of our members and helping them manage their finances such as credit card debt. Our services and rates, which also include home equity loans, mortgage loans, and refinancing solutions, are available in Wilbraham and Ludlow, Massachusetts. Contact us at our Ludlow branch at 1-(844) 587-6328 or our Wilbraham branch at 1-(800) 808-5876 to learn more.