Hi Gerry\AAM-
We got full approval from Credit Union for an amount of 220K. Their Rate is 5.28% (Approx). We're very happy about this. Who wouldn't be happy about paying 160K in interest over 20 years.. Sure Look!
I'd like to quantify the exact cost of going with CU for 1..2...3 year(s) and then moving mortgage to bank.
Costs are in 3 categories (That I can think of)
1. Additional Interest:
Additional interest because CU charge a higher Rate. Considerations are that CU use a Simple Interest Calculation not a Compound Interest. Other Considerations --- Looks like banks will be lowering Rates shortly before General Election. Banks give a lower rate for good LTV ratio and we have a good LTV Ratio.
2. CU don't treat us differently because we are FTB's
3. Cost of Moving Mortgage to another lender when\if time comes
1. This comes to approx ~€1600 per Annum. Thats just an excel calc using PMT formula
2. Not sure of cost
3. Not Sure of Cost
Any ideas of 2 and 3? Are there any other costs\disadvantages I am missing?
Thanks
K
Bigger credit unions definitely do the equivalent of a mortgage, they are usually called secured loans rather than mortgages and are secured on the property. Rates are higher and terms shorter but other than that a good option if someone has no other option.
We got full approval from Credit Union for an amount of 220K. Their Rate is 5.28% (Approx). We're very happy about this. Who wouldn't be happy about paying 160K in interest over 20 years.. Sure Look!
CUs normally only lend some multiple (usually up to 4x) of what a member has in shares.We got full approval from Credit Union for an amount of 220K. Their Rate is 5.28% (Approx).
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