What is a credit union? The key to snagging a low-interest mortgage

first_img continue reading » When shopping for a mortgage, there’s one lender that home buyers often overlook: credit unions.So what is a credit union? It’s a cooperative financial institution owned and controlled by its members—all of the co-op’s account holders and borrowers. This setup comes with some distinct advantages if you’re shopping for a home loan, as well as some limitations.Here’s everything you need to know about credit unions so you can decide whether one would be the right lender for you.Credit union vs. bank: What’s the difference?While getting a mortgage through a credit union is fairly similar to a bank, credit unions differ from banks in several ways. For one, you have to be eligible for membership. Credit unions are not FDIC-insured and instead are overseen by the National Credit Union Administration, a federal agency. ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more

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