Credit Union VS. Mortgage Co.??

Question

What are the pros and cons for getting a refinance of a house through a credit union vs a mortgage company.. besides the interest rates?? I'm looking to refi and I've heard to watch out for mortgage companies.. just curious why.. thanks so much!!

Answer 1

Most well known mortgage Co. will offer you better products, wider range of loans, then your a Credit Union and at much better interest rates.  

Don't think that you'll be getting the best rate by working with your credit union...their main business is in Checking/Savings/Auto loans.  Stick with the well known mortgage co. and know:

1) Your credit scores(all three-Trans Union, Equifax,  Experian)

2) The difference between an Adjustable Rate Mortgage Loan and a Fixed Rate Mortgage Loan

3) The type of loan you currently have

4) Do you have a pre-payment penalty

5) The estimated value of your home

6) The amount of money you'd like to finance...ie Just your current balance or if you were planning on taking any cash out...the amount your taking out plus your balance.  

Answer 2

Credit unions!!!  I would try the credit union first.  They tend to have fewer fees.  You may have to be a member but it is worth being a member of a credit union.  Credit unions for the most part are legitimate and trust worthy lenders.  The same cannot be said of most mortgage companies.

Remember credit unions are owned by the members are not in the business to make huge profits while mortgage companies are in it to make huge profits.  One way that mortgage companies make huge profits are through loan fees (sometimes hidden and undisclosed).