Mortgage at credit union or bank?

**melodys** · 01-18-2012, 01:52 PM

I am hoping the smart people here can help me look at all the angles on an upcoming decision.

I will be buying a home and need to think about where to get my mortgage. My financial house is in order and I am buying well within my means, so getting the mortgage is not a significant hurdle. I used to write software for the financial industry so I do know how to compare the numbers.

My credit union offers home loans, but the rate is slightly higher than if I shopped around for the very best deal. They do not sell the loan and they are local and very accessible. Overall, I have been happy with the quality of the services they provide.

I can shop around for a better deal, and save some money. But it would with an unknown to me and most likely non-local financial institution.

How much is it worth to go with a known entity and stay local? It is an intangible and I am not really sure how valuable it really is.

**nodmicks** · 01-18-2012, 01:59 PM

Here the credit union has lower rates currently. Our original mortgage was with an unknown bank. It has been sold twice. However we have never ever had a problem. The first two you could send or drop off payments. The current one requires auto deduct.

I would stay away from monster BOA. How big is the rate difference between the CU and the unknown bank? That would be a deciding factor for me also.

**mombottoo** · 01-18-2012, 03:00 PM

It's been years since we've had a mortgage but, when we did have one it was sold 3 times in less than 4 years...ugh!!!!

Now, if we had to get a mortgage I would probably go with our credit union.

**frugalfranny** · 01-18-2012, 03:14 PM

Originally Posted by nodmicks

The first two you could send or drop off payments. The current one requires auto deduct.

How can they do that? What if you don't have it? How can they change the rules---mid stream???

ALONG with B of A...........I would stay away from Wells Fargo too...........lots of complaints online, and I have been working with them with the estate and am TOTALLY CONVINCED they are IDIOTS!!!
Got so bad I sent off a letter.......(online reports were that emails got bounced back to you!!)

BUT then Chase doesn't have such a great rep. either..........and if 'your paper' gets sold to them not much you can do about it.

Right now I am HATING ALL BANKS AND INVESTMENT COMPANIES!!!

**nodmicks** · 01-18-2012, 04:31 PM

Originally Posted by frugalfranny

How can they do that? What if you don't have it? How can they change the rules---mid stream???

ALONG with B of A...........I would stay away from Wells Fargo too...........lots of complaints online, and I have been working with them with the estate and am TOTALLY CONVINCED they are IDIOTS!!!
Got so bad I sent off a letter.......(online reports were that emails got bounced back to you!!)

BUT then Chase doesn't have such a great rep. either..........and if 'your paper' gets sold to them not much you can do about it.

Right now I am HATING ALL BANKS AND INVESTMENT COMPANIES!!!

I don't know but the letter said it was required to be deducted from a checking or savings account. When it changed over they sent out a letter saying all payments much be auto draft along with the proper forms. If I want to make an extra principal payment or see the records you could go online.

**bunnys** · 01-18-2012, 04:44 PM

I had my mortgage through the Virginia Housing Development Association and then refinanced with my Credit Union. I just thought at the beginning and then with the refi that I didn't want to go with a "for profit" institution but rather a "for the public" institution bc I wasn't going to be "business" to them but rather "community service." I believe that in the long run I will make out ahead because my banking institutions don't see $ over my head.

I have all my accounts with the Credit Union with the exception of a credit card that has no annual fee and I pay off monthly. But I should move that as well. Just haven't gotten to it.

I think if you work the system and really stay on top of things you can shop around for all your accounts at commercial institutions and get good deals but that's what it is--work. And you have to keep working to make sure they don't get you in the end if you flub up once.

**Cricketlegs** · 01-18-2012, 07:40 PM

I too started with one bank and got bought out then bought again.

Makes the head spin.

**geckoace** · 01-18-2012, 08:15 PM

Our original was with WF and when we refi'd it was through our credit union where all of our accounts are. It could just be a mental thing but it feels safer and easier and its simple enough to get someone on the phone if i need to

**Telephus44** · 01-18-2012, 09:18 PM

We bought with our CU, but refinanced 6 months later with a local bank. I don't think the credit union vs. bank was as important as local vs. giant megacorporation. FWIW, we've only had one issue - our backyard is a separate parcel from the house, and the first tax payment due after the re-fi they forgot to pay the taxes for our backyard - and it was quickly rectified with one phone call. That's worth it to me.

If you have any other local banks/credit unions available, I'd compare those. The local bank we picked is 2 towns away, but still fairly accessible if we needed to get there. We specifically asked about them selling the mortgage, and while the do often sell the mortgages themselves, they retain all servicing rights (so they are the ones processing the payments). That was good enough for us.