YOUR FINANCIAL QUESTIONS ANSWERED
LEARN MORE. LIVE MORE.
What are the differences between credit unions vs banks for mortgages?
Credit union mortgages are becoming more and more popular as credit unions offer less fees and more affordable options for many borrowers. Credit unions can often offer more competitive rates, easier approval processes, less fees (points) and more personalization.
Credit unions are membership-based organizations and are not for-profit like banks. This model allows for fewer fees and costs that are usually passed on to borrowers.
Credit unions tend to keep their loans rather than selling them. They also tend to offer loans to those with lower credit scores than banks would approve.
In many cases, the answer is yes. Credit unions are often based in communities for which they have a vested interest. Most banks are driven more by profits when it comes to the loans they offer. Credit unions, on the other hand, are typically smaller, more focused on their communities and, therefore, more focused on customer service tailored to the citizens of their communities. This lends itself to providing borrowers with more personalized options that fit their financial goals.