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Neighbors Federal Credit Union

Are you considering Neighbors Federal Credit Union for your next home loan? How does Neighbors compare to other lenders like Amerisave and Navy Federal Credit Union when it comes to interest rates and fees? If you’re in the market for mortgage refinancing, the fees you pay make or break the deal you’re getting. Here’s my unbiased review of Neighbors Federal Credit Union services, interest rates and fees.

Neighbors Federal Credit Union

Neighbors Federal Credit Union serves Greater Baton Rouge Louisiana.

Should you trust Neighbors Federal Credit Union with your home loan? How does Neighbors stack up when it comes to services, interest rates and fees?

Rating by Robert Regehr: 2.0 stars
**

Neighbors Federal Credit Union

There is surprising little information available on their website. The site does not have an “About Us” page and there is no information on how the credit union was founded or who they are. There was a link to their January newsletter announcing the 58th annual business meeting so it seems Neighbors Federal Credit Union didn’t just hang their shingle yesterday.

I was able to find membership information on the NCUA website. According to the NCUA, Neighbors Federal Credit Union was chartered in 1954 and has 57,610 members. The CEO is Kathi M Gill and at the time of this review they have $518,618,474 in assets.

The requirements for membership and an application are available online. If you live, work, worship or attend school in any of the nine Parishes of Greater Baton Rouge Louisiana you’re eligible to join. This includes East and West Baton Rouge, East and West Feliciana, Ascension, Livingston, Iberville, Pointe Coupee, & St Helena.

Neighbors FCU Contact Information

By Phone:

(866) 819-2178
(225) 819-2178

Online:

www.neighborsfcu.org

By Mail:

Neighbors Federal Credit Union
P.O. Box 2831
Baton Rouge, La 70821

Neighbors Federal Credit Union Review

The website is surprisingly basic compared to other credit unions reviewed here but does offer online banking and publishes interest rates. Purchase and mortgage refinance rates were comparable to those offered by the best mortgage companies online with the footnote that individual rates are based on your credit and loan details. This means your credit history, loan-to-value ratio and property type are all factored into your mortgage application.

Neighbors Federal Credit Union offers 15, 20 and 30-year conventional purchase and mortgage refinancing loans as well as a five-year adjustable rate mortgage. Closing costs like the origination fee are not disclosed online. There is an online application that will charge you a credit report fee of $15.75.

I would recommend calling Neighbors Federal Credit union before applying and asking about the loan origination fee, as well as any other application or processing fees. The mortgage origination fee should not be higher than one percent of your mortgage refinance loan amount and application and processing are common lender junk fees you’ll want to avoid.

Do you have an opinion or an experience with Neighbors Federal Credit Union that you’d like to share? Please leave a comment below.

It’s always best to shop around before taking out a home loan and be sure to pay close attention to closing cost. One common mortgage mistake is to focus only on getting the lowest mortgage rates at the expense of fees. The closing costs you pay on your home loan will make or break the deal you’re getting. The more you pay out-of-pocket the less benefit you’re getting from today’s low interest rates.

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.

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The “Should I Refinance” Rule of Thumb

If you’re considering mortgage refinancing you may have heard of the two percent rule of thumb. This mortgage refinance rule states you should only take out a new home loan if the interest rate is two percent lower than your existing rate. Is this the best approach for answering the question should I refinance my mortgage or are you leaving cash on the table? Here’s a better way to base your mortgage refinancing decision and help you avoid paying too much in the process.

The Should I Refinance Rule of Thumb

Refinance rates are hovering near four percent, the lowest levels in sixty years. If you’re currently paying six percent or more on your home loan then the two percent rule applies to you but what about everyone else? If you’re paying 5%, even 4.5% you can still benefit from mortgage refinancing. Answering the question “Should I Refinance” based on a two percent drop in your interest rate is walking away from a lot of money.

Here’s how to make an informed decision if mortgage refinancing is right for you without leaving cash on the table.

This example illustrates the problem with the “two percent rule.”

  • Mortgage Loan Amount: $400.000
  • Term Length & Rate: 30-year fixed-rate @ 5%
  • Refinance Mortgage Rate: 4.25%
  • Refinance Closing Costs: $4,000

In this example the monthly payment at 5% is $2,147. Refinancing with today’s best mortgage lenders could get you an interest rate as low as 4.25% which lowers your payment to $1,967. This is a savings of $180 per month BUT mortgage refinancing will cost you four grand. Is it worthwhile?

Debunking The Two Percent Rule

In this example it’s going to take about 23 months to break-even recouping your out-of-pocket expenses. (divide $4,000 by the $180 you’re saving each month)

This is a reasonable amount of time to recoup your closing costs so if you’re answering the question should I refinance in this way it makes sense. In this example we were refinancing a large home loan, $4,000. If you’re refinancing a lesser amount you’ll still want to run the numbers before answering the question should I refinance because the amount you’ll be saving each month will be less and it will take longer to break even.

If you decide to sell your home or refinance again before recouping your closing costs you’re going to lose money no matter how low interest rates fall.

How to Avoid Unnecessary Points & Junk Fees

As you can see your closing costs decide how long it’s going to take to break even recouping closing costs and therefore how good of a deal you’re getting. One strategy for getting the most benefit from mortgage refinancing is to pay as little as possible at closing. Sure there are no free refinance options; however, you’re giving up low refinance rates in exchange for having your closing costs paid.

The best way to maximize your benefit from low refinance mortgage rates is to avoid paying discount points and lender junk fees. Discount points serve to lower your interest rate. Why pay a fee when rates are at the lowest levels in sixty years and discount points only push your break-even point further away?

Lender junk fees like application and processing fees or overpaying the origination fee do the same thing. You shouldn’t be paying more than one percent for the loan origination fee and I’ve even seen some small credit unions charge as little as .28 percent. Shopping for both refinance rates and fees will make sure you’re breaking even in the least amount of time and maximizing your benefit from the new home loan.

Shorten Your Term Length Whenever Possible

Once you’ve answered the question Should I Refinance, another strategy for saving money is to lower your term-length. The term of your home loan is the amount of time you have to repay the mortgage and along with your refinance rates determines your payment amount.

One common mistake is going from a 15-year to a 30 or even 40-year mortgage. If you do this the calculation we’ve been using to find your break-even point is no longer valid. In these cases you’ll never break even and will be losing a boatload of cash because on the interest you’re paying for those extra years.

Shortening your term-length allows you to build equity in your home at an accelerated rate and saves you thousands of dollars per year in finance charges. Government programs like HARP 2.0 encourage shorter term-lengths for this very reason. This is why you should consider a 15-year or even 10-year mortgage if you can afford the higher payments.

If you need help with the math when answering the question should I refinance, leave a comment below and I’ll be more than happy to lend a hand.

Click Here For More Details…

You can learn more about saving thousands of dollars on your next home loan by avoiding junk fees and markup by checking out my free Underground Mortgage Videos.

  • Underground Mortgage Videos
Here’s a quick sample to get you started avoiding common mortgage mistakes on your next home loan…
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Apple Federal Credit Union

Are you considering a purchase or mortgage refinancing loan from Apple Federal Credit Union? Does AFCU offer competitive rates and fees compared to other lenders like Amerisave and Navy Federal Credit Union? The fees you pay when closing on your home loan make or break the deal you’re getting no matter how low the interest rate. Here’s my unbiased review of Apple Federal Credit Union services, interest rates and fees to help you make an informed decision on your next home loan without leaving cash on the table.

Apple Federal Credit Union

Apple Federal Credit Union serves students, educators and qualified employees throughout Virginia.

Does Apple Federal Credit Union offer competitive interest rates, fees and services compared to other banks and credit unions?

Rating by Robert Regehr: 5.0 stars
*****

Apple Federal Credit Union Profile

Founded by ten teachers from the Fairfax County school system in 1956 to help a coworker buy a set of tires, AFCU has grown to over 117,000 members. Membership is open to employees their family members of the school systems in Virginia including Fairfax County schools, Falls Church City schools, Loudon County schools, Manassas City schools, Manassas Park schools, Prince William County schools, City of Winchester schools, and Stafford County schools.

Membership is also open to students, faculty, staff and alumni of George Mason University, Northern Virginia Community College, and Shenandoah University. There is a select list of qualified employers that sponsor credit union membership on the AFCU website.

Finally, if you live, work volunteer or go to school in Manassas City, Prince William County, or Manassas Park you are eligible to join Apple Federal Credit Union. The minimum deposit to open an account is five dollars. AFCU deposits are insured by the government National Credit Union Administration (NCUA).

AFCU Contact Information

By Phone:

(703) 788-4800
(800) 666-7996

Online:

www.applefcu.org

By Mail:

Apple Federal Credit Union
P.O. Box 1200
Fairfax, VA 22038-1200

Apple Federal Credit Union Review

AFCU is a full-service credit union offering checking, savings, credit cards, purchase and mortgage refinance loans. The website offers online banking and financial resources for members. Mortgage rates are published on the site and while AFCU’s rates are lower than other credit unions I’ve reviewed here they require one discount point to qualify. When you request a quote there is a non-discount point option with a higher rate by .25% in this case.

Discount points are a fee you pay to essentially buy down your mortgage rate and one point is one percent of your home loan amount. Paying unnecessary discount points increases your out-of-pocket expenses and can make it difficult, even impossible to break even recouping closing costs.

I was able to request a mortgage refinance quote on the website to see AFCU mortgage fees. Closing costs on a 30-year, fixed-rate home loan for $250,000 were $7,624.90. This included an origination fee of $700 which is only .28 percent of the loan amount. Mortgage loan origination fees are typically one percent or higher so this is one area where Apple Federal Credit Union shines. The quote included a $450 appraisal fee; however, there were no charges for processing or loan application which are common lender junk fees.

Do you have an experience or opinion of Apple Federal Credit Union that you’d like to share? Please leave a comment below.

Apple Federal Credit Union lender fees are among the lowest I’ve reviewed. Their purchase and refinance mortgage rates are in line with other credit unions if you elect not to pay discount points. Mortgage interest rates are still near a sixty-year low making paying discount points an unnecessary expense and a losing proposition.

You can learn more about getting the best deal for your next home loan without paying unnecessary points or fees by checking out my free Underground Mortgage Videos.

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Coastal Federal Credit Union

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.

Coastal Federal Credit Union

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?

Rating by Robert Regehr: 3.0 stars
***

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

By Phone:

(800) 868-4262
(919) 420-8000

Online:

email: membercontactcenter@coastalfcu.org
website: www.coastal24.com

By Mail:

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.

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Great Desert Schools Federal Credit Union Review

Are you considering a purchase or mortgage refinancing loan from Desert Schools Federal Credit Union? Does DSFCU offer competitive purchase/refinance rates and fees compared to top mortgage lenders like Amerisave and Navy Federal Credit Union? Here’s my unbiased review of Desert Schools Federal Credit Union to help you find the best lender without leaving cash on the table.

Desert Schools Federal Credit Union

Desert Schools Federal Credit Union is Arizona’s largest CU.

Should you trust DSFCU with your next home loan? How do mortgage rates and fees compare with other top mortgage companies?

Rating by Robert Regehr: 4.0 stars
****

Desert Schools Federal Credit Union Profile

Founded in 1939 by 15 school teachers, their motto is “Not for Profit, Not for Charity but for Service.” Their core values are referred to as the big four on the Desert Schools Federal Credit Union website: you, your aspirations, career development, and the shared community.

The most recent annual report was not available on the website; however, according to the 2010 annual report, Desert Schools Federal Credit Union is Arizona’s largest credit union. The balance sheet shows a loss for 2010 of 19 million dollars; however, DSFCU claims this is a 77% improvement over 2009. At the end of 2010, Desert Schools Federal Credit Union had $2,805,734,248 in assets.

I was unable to locate membership numbers on the website. Desert Schools Federal Credit Union offers accounts for both individuals and businesses. Membership is open to businesses and individuals, who live, work, worship or attend school in Gila, Maricopa, and Pinal Counties, Arizona.

DSFCU Contact Information

By Phone:

(800) 456-9171
(602) 433-7000

Online:

www.desertschools.org

By Mail:

Desert Schools Federal Credit Union
PO Box 2945
Phoenix, AZ 85062-2945

Desert Schools Federal Credit Union Review

DSFCU has an impressive website complete with online access. The mortgage information available on the site is also impressive and even addresses the new HARP Program. Desert Schools Federal Credit Union indicated that they will participate in HARP 2.0 but only for home loans backed by Fannie Mae. It appears DSFCU will not support Home loans held by Freddie Mac.

Purchase and mortgage refinance rates were published on the website along with estimated fees at closing. The fee disclosure listed an $895 processing fee which is typically a junk fee and Desert Schools Federal Credit Union requires a $345 appraisal fee. The estimate did not list an origination fee and did not indicate if one would be charged later. The loan origination fee is paid to the person or company arranging your home loan and should not be more than one percent of your mortgage amount.

Additional disclosures revealed that Desert Schools Federal Credit Union is only licensed to originate home loans in the State of Arizona.

Do you have an experience or an opinion of Desert Schools Federal Credit Union that you’d like to share? Please leave a comment below.

Overall I was impressed with Desert Schools Credit Union compared to others that I’ve reviewed here. The website is feature-rich and offers many resources for its member’s financial needs. The only negative was the mortgage loan processing fee which is a common junk fee.

Click Here For More Details…

You can learn more about paying less for your next home loan by checking out my free Underground Mortgage Videos.

  • Get My Underground Mortgage Videos
Here’s a quick sample to help you pay less at closing for current mortgage rates…
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