Metro Credit Union Mortgage Rates Reviews: Today’s Best Analysis

Joseph Meyer
Written by
Last update:

Metro Credit Union Quick Facts

Founded in 1956 as a credit union for employees of the Los Angeles County Metropolitan Transit Authority, Metro Credit Union is now a not-for-profit financial services provider with a membership of more than 280,000 people and assets of over 2.4 billion dollars. Metro Credit Union is a full-service financial institution that provides a wide range of financial services to members in the Los Angeles metropolitan area.

Besides traditional checking accounts, savings accounts and certificates, Metro Credit Union offers a number of other products and services. These include home equity loans, personal loans, auto loans, commercial loans, and many other financial products. Metro Credit Union also offers home loans for both purchase and refinance, some of which have LVRs as low as 80%. These include fixed, adjustable and variable rate mortgages.

Overview

Metro Credit Union has a 5.83%p.a. variable rate home loan, which places it as one of the top 25 home loan lenders on Canstar’s database and a top three mortgage lender in Western Australia.

Metro Credit Union has incentive programs that will help you save on both the life and the cost of your mortgage. These include:

Lender 0.15%p.a. discount on the life of your mortgage via an offset account

{1}. 10%p.a. discount on the life of your mortgage via a CommBank home loan and attendance at a local branch and financial wellness programs
{2}. 20%p.a. discount if you have a CommBank home loan or have attended a financial wellness program

Metro Credit Union also offer a range of flexible home loan options that you can tailor to suit your needs, including:

  • Fixed rates
  • Variable rates
  • Bridging or short term rates
  • Flexible home loan structures
  • 3, 5, 7 and 10 year home loan repayment periods

Metro Credit Union has a track record of being one of Australia’s most affordable banks. There are a number of payroll deductions, loan repayments and transfers you can make to lower your home loan repayments. This can help those who are self-employed or those who are just starting out on their journey to financial independence.

Current Metro Credit Union Mortgage Rates

Homeowners, and those who are thinking about buying a home, often research their mortgage options. The choices can be a bit overwhelming given the number of factors that enter into the decision-making process. Thankfully, sites such as Mortgage-X enable you to easily review all the various elements needed for a mortgage loan, including the mortgage interest rate.

One of the most important factors to consider is the mortgage rate, sometimes called the APR, as it will have the greatest effect on the total interest you pay over the life of the loan. Focusing on mortgage rates can be a bit confusing, though. It involves figuring out the interest rate for the mortgage, and then figuring out the mortgage rate over a period of time.

When you go to a mortgage lender, one of the first things you will encounter is a disclosure of the interest rate. You may have assumed that this is the interest rate you will be paying, but it’s not. It is the interest rate they will pay you if you opt for a variable rate mortgage. A fixed mortgage rate is one that may also be disclosed. It’s the interest rate you will pay for the entire life of the loan, and there are certain restrictions that may apply.

Now, in order to compare your mortgage options, you should get the actual mortgage rates. This is where it can get slightly confusing, as there are two different mortgage rates you can compare.

Metro Credit Union Loan Specifics

Metro CU based in Salt Lake City, Utah was founded in 1936 by a group of Utah bankers following the Great Depression. At the time, people had very little money and banks were forbidden from hosting insurance companies and other financial institutions. The only way to borrow money during these harsh times was to go through a local bank; a local investor or your family, or you had to deal with a loan shark.

This was a result of the 1933 Banking Act designed to prevent the United States economy from falling into another great depression.

The legislation allowed local investors to pool their resources and lend out money with the backing of a credit union.

Metro Credit Union now offers several financing options, the best of which comes from a local branch in their network who will approve you for a loan in as quickly and efficiently as possible.

Fixed-rate Loans

A fixed-rate mortgage results in a consistent interest rate over the life of the loan. Your monthly payment stays the same, regardless of fluctuations in market interest rates. The only thing that changes on a fixed-rate mortgage is your periodic payment. It goes up after the first year and every year after that.

Before you choose a fixed-rate mortgage, you need to determine how long you plan to keep the loan. The longer your time horizon, the more attractive fixed-rate mortgages become. You should also do some homework to assess how likely it is that market interest rates will rise in coming years.

Lastly, you’ll want to select the type of fixed-rate loan that suits you best. For example, if you’ll be putting less than 20 percent down, you’ll likely have to choose a hybrid adjustable-rate/fixed-rate mortgage.

Adjustable-rate Loans

Variable-rate mortgages are also known as adjustable-rate mortgages (ARMs) and are the most common type of mortgage loan. Adjustable interest rates are designed to move up and down in conjunction with the federal funds target rate. The average initial ARM rate is much lower than that of a fixed-rate mortgage. When deciding between an ARM or fixed-rate mortgage, keep in mind that you may have to pay more each month than with a fixed-rate mortgage. But the great news is that it will adjust higher at the very start, and lower when the economy slows. ARMs have the lowest initial interest rates and are a great investment when you predict the economy is going up.

Rates are usually quoted from the time of the loan, but your actual rate is only known when you close on the loan. Each loan is originated on its own so no other factors can be compared and each loan is independently priced.

Jumbo Loans

Jumbo loans are loans which are larger than the standard loan size. The maximum permissible loan size for a jumbo mortgage is different from lender to lender and depends on the area and the type of property. Loans with lower loan-to-value ratios for the property, usually have jumbo loan restrictions, sometimes going up to amounts well over conventional loan limits plus sometimes including special underwriter fees.

Jumbo loans are typically made when the borrower needs more than the normal amount to buy a house. A jumbo loan is designed for higher amounts and has different requirements from conventional mortgages. For instance, borrowers applying for jumbo loan typically need to have a higher credit score and may need to pay slightly higher mortgage insurance. There are also no government-backed jumbo loans programs available, and these loans are offered at market rates instead, which can make it difficult for borrowers with lower credit ratings to get one of these loans.

FHA Loans

Good for First Time Home Buyers in 2018?

It is not uncommon for new life experiences to take place in new home settings, and as we all know, the possibilities that await new experiences are endless: marriage, bringing up a child, starting a new career and, yes, buying your first home.

One of the very first questions any new homeowner will have to ask is whether to use a regular mortgage or an FHA loan to finance the purchase. The question can also be a rather difficult one to answer. HUD (U.S. Department of Housing and Urban Development) has created a loan product designed to assist first-time home buyers, no matter what their financial situation.

This loan has its own list of pros and cons, but at the end of the day, inexperienced home buyers will often have a difficult time sifting through all of the information.

As a result, this guide will focus on answering the following question: Is an FHA loan a good fit for first-time homeowners?

To perform that task, the guide will compare an FHA loan to a regular home mortgage.

VA Loans

VA mortgages are federally guaranteed by the U.S. Department of Veterans Affairs, which insures home mortgage loans to eligible veterans. These loans have no down payment requirements and are typically obtained by those who already have a good credit rating.

The VA uses an eligibility-based calculator to determine how much a borrower can borrow based on his or her income and assets. Their eligibility-based calculator uses 41 home affordability factors to determine a home loan applicant’s home loan amount, including:

The amount of the VA funding fee that is paid up-front by the borrower,

The amount of the down payment made by the borrower,

Lender fees

The veterans’ credit history, and,

The most recent housing payments filed by the borrower with the VA.

Borrowers who are considering a VA loan for purchasing or refinancing a home should be aware that these loans are 100% assumable, which means that they can be transferred or sold to a third party at any time. Unfortunately, VA mortgages are not a part of FHA mortgage insurance, which may prevent them from being a good choice for some buyers.

HomeReady Loans

Metro Credit Union serves the Washington, DC, Virginia, Maryland and West Virginia areas with mortgage loans. They offer a home loan program called HomeReady designed to make homeownership possible for low and moderate-income families.

HomeReady is a loan that offers 100% financing or 3% down payment options. For mortgage rates and terms, review the information below. You should also compare mortgage rates and terms offered by Metro Credit Union with the competition in the area.

For the full review, enter your zip code into the box on the upper right of this page. Based on your zip code, we will display:

The loan terms offered by Metro Credit Union

Your current mortgage rate. Click for an accurate rate.

Home Possible Loans

Located in the heart of Utah’s Wasatch Front, Milestone Mortgage, Inc. has been providing Metro Credit Union mortgage options to the surrounding communities throughout Salt Lake, Utah and Davis counties. That means that whatever your home loan needs, our trust, experience, and capabilities will exceed your expectations. We do this by working closely with Metro Credit Union to understand your specific needs and then exploiting that knowledge to find home loan options that will provide you more flexibility, more security, and more freedom than you ever thought possible.

Achieving your home ownership goal doesn’t have to be difficult. It can be a fun and exciting journey. The process of acquiring a home loan is an important, stimulating journey and our team of experts can walk with you every step of the way. At Milestone Mortgage , we specialize in all forms of lending, including real estate, construction, mortgages, lines of credit, home equity, and debt consolidation. So whether it’s a new construction order or a refinanced loan, we’re the company you can trust.

MassHousing Loans

MassHousing through the Mass Housing Mortgage Program offers two of the most advantageous programs for housing for lower income families. The loans are low interest and do not require a substantial down payment. The repayment schedule for both types of loans is shorter, traditionally only up to 12 years.

Buying a home is the most expensive purchase that an individual will ever make. Before rushing into this decision, consider how one can buy a house on a limited budget. One of the ways to do so is to check on the MassHousing program. Since the loan repayment schedule is shorter, one will have more money at the end of the loan period.

There are very few eligibility criteria for the MassHousing mortgage program. The individual needs to form a family group and the loan is made to all members. The income should be below 80% of the area median income level. The combined debt ratio of the applicant should be less than 50% of the gross income.

Another option for buying a house is by getting a second mortgage. A first mortgage is usually paid off first and then the second mortgage is paid off. When the individual’s financial position is stable, the two mortgages are then paid off together.

At Home Mortgage Loans

Does It Make Sense To Use A Credit Union?

If you already have an existing checking or savings account at your local credit union, you may be tempted to refinancing your mortgage through them. While some credit unions do offer home loans, many will not because it cuts into their revenue stream. They make money off of interest on loans and charge you to manage your mortgage. They also have overhead costs associated with the cost of doing business. What does this mean? Instead of making money off of loans, they either don’t have the best rates, or they cost more money to transact with their customer base.

Very few credit unions are publicly traded. For this reason, they are not required to release their financials to the public. This can pose a problem, especially if you are not sure whether or not you would like to invest in your credit union. If it is not publicly traded, you may not get the kind of transparency you expect from a true bank. If they are worried about a credit union going under, the government wouldn’t step in and bail it out like they would a bank. This means they would not have access to funds. However, these credit unions are often seeing an increase in membership, which usually brings with it a large asset base. For this reason, you should probably consider opening an account with your local credit union if you want to begin shopping around for a home loan.

Metro Credit Union Mortgage Customer Experience

Metro Credit Union Lender Reputation

Metro Credit Union is a well-established and respected financial institution. It was established in 1927 and is a top-5 credit union in the United States. It now offers a wide range of financial services including credit card, investment, and mortgage products.

Metro Credit Union offers a variety of financial products to its members who must first meet the credit union’s eligibility by joining. They do not accept anonymous membership applications and membership is only available to people who live or work in MN, WI, ND, or SD.

The credit union is currently in the news for their affordable home loan products after they closed most of their branches. It is leaving their members with a lack of physical access to their branches and customer service representatives.

The credit union is not FDIC insured so there is an opportunity for risk with your savings. They also have a history of charging higher than average fees.

Metro Credit Union has received 1 review that has a positive rating. Their overall rating is positive, and their customer service channel ratings are even better.

Metro Credit Union Mortgage Qualifications

Metro Credit Union loans can qualify for some of the best home mortgage loan options available on the market today. They can help you to buy, build, refinance or improve your home.

Your credit union will review your income, debts and assets, as well as your credit history to determine how much they will lend you.

Moneyville.ca recommends that you check your credit score before you begin the process of buying a home to make sure you know what the lender is considering.

Metro Credit Union Phone Number & Additional Details