Buying a house is probably one of the most important financial decisions that we will make throughout our lives. When we set out to accomplish this, there are many thoughts and concerns that begin to run through our head. One of the most significant is how we are going to pay for the house that we want. That is, which financing option is right for us? There are so many different options when it comes to financing your home that it might seem overwhelming at first, but by comparing the different types of mortgage loans, and creating a list of pros and cons of each, we can make it easier to choose which is right for us. The first thing we need to determine is what exactly a mortgage is. A mortgage is a document that makes property security
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The lending option that we are going to discuss is the credit union mortgage. In an article in Forbes magazine written by contributors by Trulia, they discuss the pros and cons of taking the credit union mortgage option. The first point made in this article is that credit unions have historically offered lower mortgage rates. This means that your interest rate is going to be lower and you will be saving thousands of dollars over the life of the loan. To put it in perspective, if you took a mortgage loan that was for $200,000 with a 15-year loan at 5 percent, your monthly payment would be about $1,581.59 and at 5.25% your monthly payment is $1,607.76. A small change such as a .25 percent difference adds an extra $26 per month. This doesn’t seem like a significant amount of money at first, but …show more content…
One of these is the eligibility required for a credit union. Credit unions are chartered at the state level and each union has a limited membership base. Because of this, most credit unions require members to meet certain membership requirements. You have to belong to a certain group, occupation, geographic location, or association such as school, church, or homeowner’s association in order to gain membership and benefits to a credit union. (ARTICLE) This isn’t all credit unions, but it is a vast majority of them. The problem with this, is that you cannot get a credit union mortgage if you cannot qualify to become a
The lending option that we are going to discuss is the credit union mortgage. In an article in Forbes magazine written by contributors by Trulia, they discuss the pros and cons of taking the credit union mortgage option. The first point made in this article is that credit unions have historically offered lower mortgage rates. This means that your interest rate is going to be lower and you will be saving thousands of dollars over the life of the loan. To put it in perspective, if you took a mortgage loan that was for $200,000 with a 15-year loan at 5 percent, your monthly payment would be about $1,581.59 and at 5.25% your monthly payment is $1,607.76. A small change such as a .25 percent difference adds an extra $26 per month. This doesn’t seem like a significant amount of money at first, but …show more content…
One of these is the eligibility required for a credit union. Credit unions are chartered at the state level and each union has a limited membership base. Because of this, most credit unions require members to meet certain membership requirements. You have to belong to a certain group, occupation, geographic location, or association such as school, church, or homeowner’s association in order to gain membership and benefits to a credit union. (ARTICLE) This isn’t all credit unions, but it is a vast majority of them. The problem with this, is that you cannot get a credit union mortgage if you cannot qualify to become a