Are you thinking about taking out a new mortgage or refinancing with Redstone Federal Credit Union? How does Redstone FCU compare to the best mortgage companies when it comes to interest rates and fees? Here is my unbiased review of Redstone Federal Credit Union services, mortgage rates and fees.
Redstone Federal Credit Union
Redstone FCU is the largest credit union serving the State of Alabama.
Should you trust Redstone Federal Credit Union with your home loan or are their offers laced with lender junk fees?
Rating by Robert Regehr: stars
Redstone Federal Credit Union Profile
Chartered on November 28th, 1951, Redstone Federal Credit Union currently has 342,640 members and $3,188,433,937 in assets according to the National Credit Union Association (NCUA). Redstone FCU claims to be the largest credit union in the State of Alabama and among the top 23 in the nation.
Redstone Federal Credit Union got its start when 11 employees from Redstone Arsenal stashed $55 in a shoebox. Today credit union funds are no longer kept in that shoebox and membership is open to employees and members of 1,400 employers, clubs and organizations that sponsor the credit union. There are 22 branches and Redstone Federal Credit Union participates in an ATM network that includes 28,000 free cash machines.
Redstone FCU Contact Information
By Phone:
(800) 234-1234 extension 3640
(256) 837-6110
Monday – Friday: 8 am – 7 pm
Saturday: 8 am – 5 pm
Online:
www.redfcu.org
twitter.com/redstonefcu
www.facebook.com/RedstoneFCU
By Mail:
Redstone Federal Credit Union
220 Wynn Drive
Huntsville, AL 35893-0001
Redstone Federal Credit Union Review
The website is polished and feature rich including an active twitter stream and Facebook presence. Conforming home loans are available up to the $417,000 limit and jumbo loans to $500,000 for both fixed-rate and adjustable rate mortgages. The website states that a discounted origination fee is available on certain programs but didn’t specify which programs.
Remember, the fees you pay including any discount points make or break the deal you’re getting regardless of the interest rate.
Purchase and mortgage refinance rates are published on the website and were competitive with what I’ve seen from the best mortgage lenders like Amerisave and Navy Federal Credit Union. I was able to request a mortgage refinancing quote on the site that provided a fee disclosure.
Do you have an opinion or experience with Redstone Federal Credit Union that you’d like to share? Please leave a comment below!
Refinancing a 30-year, fixed-rate home loan for $250,000 had $4,825 in closing costs with zero discount points. The loan origination fee was one of the highest I’ve seen from a credit union at $2,990. The mortgage origination fee is standard and a reasonable amount to pay is one percent if you’re going with a non-credit union lender.
Redstone Federal Credit Union’s origination fee amounts to 1.196% which is simply not a good deal. There is also a $475 appraisal fee (high) and an $86 tax service fee (junk).
I was simply not impressed with the fees charged by Redstone Federal Credit Union compared to other community based credit unions reviewed here. Shop around from the top mortgage companies and you’ll find a much better deal.
You can learn more about getting the best deal for your next home loan while avoiding unnecessary discount points and junk fees by checking out my free Underground Mortgage Videos.
My name is Rob Regehr and I’m a personal finance writer with a chip on my shoulder for banks and brokers that take advantage of my friends and neighbors.
