Switching from bank to a credit union saved me $3,200 on closing costs

I was all set with a big bank for my mortgage, but my realtor suggested I check out a local credit union. Turns out they had way lower origination fees and no junk charges like processing fees. I called three credit unions in my town and one offered a rate 0.25% lower too. What changed? I used to think banks were the only option, but now I shop around like crazy. Has anyone else found a hidden fee they almost missed?

3 comments

3 Comments

juliaa654d ago

Yeah @blake_kelly19 I used to think banks were the only way to go but this totally changed my mind.

blair_torres704d ago

3,200 bucks on closing costs? That seems like a lot unless you were buying a million dollar house. Most of those junk fees people complain about are like 50 or 100 bucks at a time. I've used banks and credit unions for different things over the years and never saw a difference that big. Maybe you just lucked out with a really good credit union or your original bank was trying to rip you off in a special way.

blake_kelly194d ago

Yeah that realtor probably saved you a good chunk of change just by pointing you in the right direction. The big banks love throwing in those "processing" and "administration" fees that sound official but are basically pure profit for them. Credit unions usually have a cap on what they can charge because they're not trying to make shareholders happy, they're just covering their costs. I've seen people save even more by checking if the credit union does portfolio loans where they keep the mortgage instead of selling it, because those often have lower fees too since they're not paying some third party to package it up.