Why a Credit Union is the Smart Choice for a Home Equity Loan
You need a reputable lender for your second mortgage so you can avoid scams and get a good rate with someone you know and trust. That leaves two choices: a bank and a credit union. Obviously, banks and credit unions offer a lot of overlapping services. Both banks and credit unions take in deposits, administer checking and savings accounts, issue credit and debit cards, and provide home loans in addition to consumer loans. With the two types of financial institutions being so similar, what makes one more favorable than the other? Much of it comes down to guiding philosophy and who is most willing to work in the consumer’s best interests.
Who Gets the Profits?
Banks are corporations – owned by their stockholders. Typically, and especially at larger banks, these shareholders are Wall Street institutions. Credit unions, on the other hand, aren’t owned by stockholders on Wall Street; we’re owned by our members on the local Main Streets throughout our nation’s and world’s neighborhoods!
True, neither banks nor credit unions are in business to lose money. Both need to show a healthy bottom line to stay open. The difference is this: When a bank makes money, they send their profits to their stockholders, who most often have no connection to your local community. Read more
