Getting a Mortgage from a Credit Union
5 min read
A mortgage is the biggest loan most people ever take, so small differences in rate and fees add up to real money. Credit unions are worth a serious look — here's what they offer and how to compare.
What credit unions bring to a mortgage
Competitive rates and lower fees are the headline: as not-for-profit cooperatives, credit unions often shave both the APR and the closing costs compared with for-profit lenders.
Many credit unions also keep (or “service”) their loans in-house rather than selling them off, so the institution you close with is the one you'll deal with for the life of the loan — a real difference when you have a question or hit a rough patch.
The loan types you'll see
Most credit unions offer the standard menu: fixed-rate and adjustable-rate mortgages, plus FHA and VA loans where applicable. Many also offer home equity loans and HELOCs for tapping equity later.
First-time-buyer programs, lower down-payment options, and local down-payment-assistance partnerships are common at community credit unions.
How to compare offers
Compare the APR (which folds in fees), the loan estimate's closing costs, and the rate-lock terms — not just the headline interest rate. Get quotes from more than one lender, including at least one credit union.
Check current credit union mortgage rates on FindMyCU, and use a mortgage affordability calculator to see what payment fits your budget before you apply.