Credit Union Loan Rates

Credit Union Mortgages & Home Equity Loans


Are Mortgage Loan Rates Better at Credit Unions?

A credit union is a member-owned, non-profit financial institution. A common advantage of membership is low credit union loan rates because revenue that would normally be counted as profit at a bank, is returned to the members in form of lower loan rates, fees, and discounts.

Because their non-profit cooperative structures are exempted from most state and federal taxes, credit union mortgage and home equity loan rates can also be lower. Memebership does have it's benefits, credit unions typically offer better rates on savings and certificates of deposit, in addition to lower loan rates.

Home Equity Rates

Home equity loans are usually more abundant at credit unions, as opposed to many commercial banks which have cut back on home equity products. Qualified members are able to get cash out, which can be used for any purpose, such as home improvement or debt consolidation.

Credit union home equity loan rates are very competitive compared to banks or other lending sources. Loan rates and terms are usually offered in 5 year increments, ranging from 5 to 20 years.

Mortgage Rates

Credit union mortgage rates are usually very competitve on refinancing and home buying as well. In addition to 15 year and 30 year mortgages, many credit unions offer mortgage loan options such as 3, 5, or 7 year fixed rate refinance or purchase loans amortized for 30 years.

What's the Catch?

How can you take advantage of low credit union loan rates? You have to submit an application and be approved as a member. Typically, membership is restricted to people who work for approved companies, live in specific geographic ares, go to certain schools, churches, or belong to other organizations on a credit union approved list.