If you belong to a Southcoast Massachusetts credit union, you are probably already aware of all the opportunities available to members for home loans and home equity loans. If you do not belong to a credit union, this article will help you see the benefits to membership, learn how and where to apply for a credit union home loan in New Bedford, and find out more about the types of home loans available.
Advantages to Borrowing from a Credit Union
Changes in the economy forced many banks to change the way they did business. Unfortunately, that led to some institutions hoarding the funds that they would have normally used for lending to both individuals and businesses. When it comes to buying a home, most Americans just don’t have enough cash on hand to purchase a new house cash outright. The change in bank behavior made it harder than ever for individuals and families to buy a home.
Credit unions are an excellent alternative to traditional banks for auto, home and personal loans, in addition to checking, savings and other types of financial investments. If you have been turned down by a bank for a home loan, you will definitely want to look into borrowing from a credit union instead. Even if you haven’t been turned down, there are many advantages to choosing a credit union home loan in New Bedford over other lending options.
A credit union is very different from a bank. Credit unions are actually owned by the members, which is why they usually have more favorable rates for lending than other banks. It might not sound like a lot, but even if you save just a half of a percentage point on your interest, you will end up saving thousands of dollars throughout the term of your loan. Every percentage point – and half of a percentage point – counts.
Credit unions are also known to take more chances lending to their members than traditional banks might. Most of the major banks in the United States have limited or, in some cases, practically shut down all of their home lending services, many credit unions still have the ability to make home loans available to their members.
Joining a Southcoast Massachusetts Credit Union
If the benefits associated with credit union home loans appeals to you, it’s time to join a local credit union. It is important to note that most credit unions have restrictions with regard to who can join the membership. Some limit membership to people who work for a specific company, while others limit membership to people who work or live in a certain city or region.
If you live or work in either Bristol or Plymouth counties, St. Anne Credit Union is an excellent choice to apply to for credit union home loans. For more information about joining St. Anne or for questions about borrowing from a credit union, call 508-993-0011 or visit them at 93 Union Street in New Bedford.
Types of Credit Union Home Loans Available
There are three different types of home loans available through St. Anne Credit Union for you to choose from. If you already own your home, you can apply to get an equity loan or an equity line of credit. If you are looking to purchase a home, St. Anne also offers fixed rate mortgage credit union home loans.
Equity Loans – St. Anne Credit Union offers a fixed rate equity loan up to a maximum of $125,000. The loan can be up to 75% of the value of the home minus the first mortgage balance. The terms for equity loans can range between five and fifteen years. These loans are only available on properties that are owner occupied.
Equity Line of Credit – St. Anne Credit Union also offers loans up to a maximum of $125,000 for the equity line of credit. These loans are based on a maximum of 70% of the value of your home minus the first mortgage balance. This type of loans is also only available to properties that are owner occupied.
Home Loans – St. Anne Credit Union offers fixed rate mortgage loans that range between five and thirty years. For more details on the terms and conditions of these credit union home loans, please contact St. Anne Credit Union in New Bedford direct.