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Personal and Business Banking

Chapter 2: The Real World of Mortgages

StreetWise Mortgage Guide

  • Summary
  • Article

Chapter 2: The Real World of Mortgages


  1. A few critical questions you face with a mortgage
  2. What you can expect from DCU's StreetWise program

Chapter 2: The Real World of Mortgages

Finding the right home and the best mortgage value makes car shopping look as easy as watching someone cut the grass. For instance...

  • On-line services that guarantee they will find you the lowest mortgage rate usually don't find you the lowest rate? Why? Their guarantee really says “we'll guarantee you the lowest rate of the mortgage companies that work with us and pay us a commission.” And these on-line services don't work with all mortgage companies, banks, or credit unions. Question their guarantees.

  • Two mortgages with the same interest rate could vary tens of thousands of dollars in overall cost to you? Mortgage payments shouldn't be your only concern when you buy or finance a new home. Speaking of payments, how do you know what you can really afford? And who do you trust to show you that critical amount? What type of mortgage should you get?

  • And what about paying points to reduce your interest? Should you do that? How do you know?

  • If you have a mortgage right now, should you refinance it?

Who can you trust on all these questions and more?

DCU. That's because the StreetWise Mortgage Guide is more about member education. It's driven by information, not by hype.

  • Since you own DCU and our Vision is that All members achieve their financial goals, we want you to conserve money at every step of the process. We therefore are always looking for ways to get the prices down, not up. We're also working hard to help you make the best decision for your pocketbook and your long-term sanity. And the great number of tools we have to help you – either on-line or in person – are amazing, as you'll see in a minute.

  • StreetWise education is free, but a lack of information can be very expensive. We want to help you to become an informed consumer so you can better protect your interests and make the best choices for you.

  • And StreetWise comes with the two important promises:

    1. If you come to us to refinance your mortgage with us and we can't save you money, reduce your payment, or both, we will let you know. Do you know anyone else that promises that?

    2. If you get a mortgage with us and choose DCU service, you'll deal with us – not some third party – for the life of your mortgage. You'll be able to come to us at our branches, by phone, or by email with any question; access your mortgage through online banking, Easy Touch, and our other electronic services.

      Why is this important? Many mortgage companies sell their mortgages to other companies service-released. That means the original lender is no longer responsible for handling payments and service to the borrower. Investors prefer to buy mortgages service-released. They don't want to pay someone else to accept payments and they often want to market many of their other services to you. Since they can't do that if the original lender sells the mortgage service-retained, they may want the borrower to pay a slightly higher rate – up to 1/8% higher.

      While you may sometimes get a slightly better rate when the servicing is sold with the mortgage, problems for the borrower are common. Your mortgage may be sold while your payment is in transit. As a result, your payment may be late and you may not even know who to contact to straighten things out. And it can happen more than once during the life of the loan.

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