Are you considering LA Financial Credit Union for mortgage refinancing or to purchase your home? How does LAFCU compare to today’s best mortgage companies like Amerisave or top credit unions like Navy Federal Credit Union? Here’s my unbiased review of LA Financial Credit Union to help you make an informed decision without leaving cash on the table.
How does LAFCU stack up compared to others for rates and fees?
Should you trust LA Financial Credit Union for your next home loan or are the fees they charge too much compared to other lenders and credit unions?
LA Financial Credit Union Profile
Founded in 1937 as Los Angeles County Court Employees Federal Credit Union with just 20 members, LAFCU membership is available to anyone that lives, works, or worships in Los Angeles County. LAFCU started out as a self-help organization intended to help protect the pay checks or county works from predatory bankers.
I was unable to locate how many members LAFCU has going through the website and annual report, only that in 2011 they added 2,429 new members. In 2011 LAFCU had a net income of $1,606,239, almost three times what it was the previous year.
They offer conforming home loans (non-jumbo) with term-lengths ranging from 10 to 40 years. The only jumbo mortgage offered at the time of this review was a fixed-rate 15 year home loan. (This seems unusual for LA County)
LAFCU Contact Information
Fax: (213) 680-0815
Monday – Thursday 8:00 am to 5:00 pm
Friday 8:00 am to 6:00 pm
Mailing Address: (Downtown LA Branch)
716 W. First Street, Los Angeles, CA 90012
LA Financial Credit Union Review
LAFCU publishes purchase and mortgage refinance rates on their website and at the time of this review a 30-year fixed rate home loan is showing 4.0%. This is comparable to what other lenders are offering but nothing to write home about. The rates posted on the website do not include discount points which are often abused by other lenders to boost their profit margins. LAFCU publishes an Annual Percentage Rate (APR) which is not a good way of shopping for a home loan as the calculation makes many assumptions about you which rarely hold up.
The purchase and refinance rates quoted require an 80% loan-to-value ratio, something other credit unions are more willing to work around. Additionally they stipulate that your home must be owner-occupied and no cash-out transactions. The only fee published is a $500-$700 appraisal fee, reinforcing the 80% LTV requirement. The website does not mention the origination fee or any application or processing fees.
The loan origination fee is the credit union’s fee for arranging your home loan and should not be more than one percent. Some Credit Unions reviewed here offer origination fees as low as .55 percent. As far as Credit Unions go LAFCU seemed pretty average compared to others like NFCU and FSBs like USAA.
Do you have an experience or an opinion of LA Financial Credit Union that you’d like to share? Please leave a comment below.
You can learn more about getting today’s best refinance rates without paying unnecessary points or lender junk fees by checking out my free Underground Mortgage Videos.