Are you considering Coastal Federal Credit Union for a mortgage refinancing or purchase home loan? Does CFCU offer competitive interest rates and fees compared to other lenders like Amerisave? The fees you pay when taking out a home loan make or break the deal you’re getting why is why it’s important to choose a lender wisely. Here is my unbiased review of Coastal Federal Credit Union services, rates and fees.
Centered around Raleigh, North Carolina, CFCU claims to understand the financial needs of fellow North Carolinians.
Should you trust Coastal Federal Credit Union for competitive services, rates and fees?
Coastal Federal Credit Union Profile
Coastal Federal Credit Union is a not-for-profit financial cooperative based in Raleigh, North Carolina. The website claims to be committed to providing their members with affordable, convenient financial services. CFCU was founded in the summer of 1967 by eight IBM employees looking to help meet the financial needs of their coworkers. Membership was opened up to other employers in the State of North Carolina in 1991.
Coastal Federal Credit Union operates 15 branches and offers free online and telephone banking to its members. Membership is open to employees of select business partners and members of North Carolina Consumers Council NCCC. If you don’t work for a qualified employer NCCC membership will cost you $18, making CFCU membership open to just about anyone the State.
The most recent annual report indicates 190,000 members and 1.9 billion dollars in assets. CSFCU is known for their 1 cent overdraft fee for honest mistakes campaign which only charges a penny for members that cover their overdraft on the same day. Compared to $35 per item at other banks this is a huge draw for many members.
Coastal Federal Credit Union actively pays a dividend to their members. According to the most recent annual report in 2010 CFCU paid $16,903 to members as a dividend. Most of the credit unions I’ve reviewed don’t pay a dividend but claim to use the money to offer low-cost loans and services; however, reviewing their rates and fees rarely lives up to the claim. It only works out to about eight cents per member but I suppose something is better than nothing.
CFCU Contact Information
Coastal Federal Credit Union
P.O. Box 58429
Raleigh, NC 27658
Coastal Federal Credit Union Review
Sporting a newly redesigned website, the site is fairly easy to navigate. The mortgage section claims a 25% discount on origination fees and offers home equity loans without closing costs. The site offers online applications for both fixed and adjustable rate mortgages and publishes current mortgage rates on the site. The interest rates published seemed slightly higher than those offered by other lenders like Navy Federal Credit Union but did not include discount points.
I was able to find a fee disclosure on the site by requesting a quote. The loan origination fee on a $250,000 mortgage refinance was $2,275.00. This works out to .9 percent for loan origination and while the website boasts 25% off the origination fee, I’m not seeing it. While this is less than one percent, a reasonable amount to pay for loan origination, .9 percent is nothing to write home about.
Do you have an experience or an opinion of Coastal Federal Credit Union that you’d like to share? Please leave a comment below.
The reason your fees are so important when refinancing your home is that you’ll need to break even recouping your out-of-pocket expenses before benefiting from low refinance rates. If you’re unable to break even before you sell or refinance again you’re losing money no matter how great the interest rate.
Should you trust Coastal Federal Credit Union with your next home loan? I would recommend shopping from a variety of lenders and brokers comparing rates and fees before choosing one of the best mortgage lenders. You can learn more about getting the best deal on your next home loan while avoiding unnecessary fees and points by checking out my free Underground Mortgage Videos.