MAKE MONEY ONLINE POSTS: Bethpage Federal Mortgage Rates Review

الأربعاء، 26 يونيو 2019

Bethpage Federal Mortgage Rates Review

Originally an employee credit union formed in Long Island in 1941, Bethpage Federal Credit Union has expanded considerably over the last 75 years, now providing mortgages in every state except the Lone Star State.

Headquartered today in Bethpage, Long Island, the federally-chartered credit union provides a wide range of conventional, FHA, and jumbo loans, as well as HELOCs and fixed-rate home equity loans.

In this review, we will discuss the various mortgage products offered by Bethpage and see how they compare to the nation’s top mortgage lenders.

Bethpage Federal Mortgage Highlights

Established in 1941, Bethpage Federal Credit Union is now the 16th largest credit union in the United States
Services 49 states, though in-person service at a branch is only available in the Long Island, New York area
To apply for a loan, you must become a credit union member by opening a savings account with a $5 minimum deposit
Loan products include conventional, FHA, and jumbo purchase and refinance mortgages
HELOCs available for up to $1 million and fixed-rate home equity loans carry terms up to 30 years
Does not offer VA or USDA loans

History of Bethpage Federal Credit Union

Bethpage Federal Credit Union began its life in 1941, when employees of the aeronautical engineering company Grumman Corporation joined together in Farmingdale, Long Island to form the Grumman Plant Federal Credit Union. The enterprise eventually became Bethpage Aircraft Federal Credit Union in 1948 before adopting its current title in 1974.

In 2003, Bethpage was approved for the largest federal community charter in the United States, accelerating the institution’s growth and helping it become the 16th-largest credit union in the U.S. In 2016, Bethpage began serving customers in every state except the Lone Star State, though the credit union’s three dozen branches are all still located in the Long Island area.

With government-backed 15- and 30-year FHA loans that require borrowers put as little as 3.5 percent down, to jumbo loans that cover up to $5,000,000, Bethpage services a wide range of customers, including both first-time homebuyers and those making expensive property purchases. Becoming a borrower requires a credit union membership, which can be achieved by opening a savings account with as little as a $5 deposit.

Bethpage Federal Loan Specifics

Bethpage offers a relatively comprehensive portfolio of mortgage products, including fixed- and adjustable-rate loans and jumbo loans. A wide range of loan terms are available within those options, with borrowers able to choose between 10-, 15-, 20- and 30-year fixed rate loans, or 3/1, 3/3, 5/1, 5/5, 7/1 or 10/1 adjustable-rate mortgages. The credit union also provides government-backed FHA loans, though not USDA or VA loans.

Fixed Rate Loans

A fixed-rate mortgage comes with an interest rate that remains the same over the entire loan term, rather than increasing or decreasing with national interest rates. Bethpage allows borrowers a wide range of choices when it comes to this loan type, including a 10-year fixed rate mortgage with a 3.625 percent rate and 3.856 annual percentage rate, a 15-year fixed rate mortgage with a 4 percent rate and 4.161 APR, a 20-year fixed rate mortgage with a 4.375 percent rate and 4.502 APR, and a 30-year fixed rate mortgage with a 4.5 percent rate and a 4.593 APR. The shorter the term, the lower the interest rates, but the less time borrowers have to pay off the loan.

Adjustable Rate Loans

As opposed to fixed-rate mortgages that stay the same for the life of the loan, adjustable-rate mortgages (ARMs) begin with a lower interest rate that remains the same for a predetermined amount of time, after which it increases or decreases with national rates. Bethpage offers a 3/1 ARM, in which the interest remains the same for the first three years and then adjusts yearly with national rates for the remaining life of the loan. Bethpage also offers 5/1, 7/1, and 10/1 ARM loans, which keep rates fixed for the first five, seven, and ten years, respectively. The credit union also provides a 3/3 ARM, in which the rate changes every three years, and a 5/5 ARM, in which the rate changes every five.

FHA loans

Federal Housing Administration-insured loans are government-backed mortgages designed to help Americans who would otherwise struggle to qualify for a traditional home loan. Bethpage offers 15- and 30-year FHA loans that allow borrowers to purchase a new home with as little as 3.5 percent down.

Jumbo Loans

As of 2018, the limit on the maximum value assigned to a conventional loan is $453,100. A jumbo mortgage covers loans which exceed that maximum. Bethpage jumbo loans cover up to $5,000,000, through both ARM programs and 10-year fixed rate mortgages. The credit union also offers 15-year and 30-year fixed rate programs to cover loans of up to $2,500,000.

Bethpage Federal Mortgage Customer Experience

Bethpage Federal Credit Union allows borrowers to start their mortgage or home-equity loan application online, by visiting a branch, or by calling a loan officer. The credit union’s website contains many helpful resources that explain mortgage lending and provide financial counseling. Bethpage also offers an online first-time homebuyer center, which guides borrowers through the lending process and includes a closing costs estimator.

Bethpage does not appear in J.D. Power’s 2017 U.S. Primary Mortgage Origination Satisfaction Study, nor is the credit union listed among the lenders found in the CFPB’s Monthly Complaint Report.

Bethpage Federal Lender Reputation

Despite its nearly national home loan program, Bethpage Federal remains primarily a regional credit union with deep ties to the Long Island community it serves, including sponsorship of the Bethpage Ballpark, home of the independent baseball league team the Long Island Ducks.

Bethpage Federal Credit Union’s Long Island headquarters has received an A+ rating by the Better Business Bureau, though the company itself is not a BBB-accredited business. Bethpage has also received a customer rating of roughly two and a half out of five stars, though that is based on just three customer reviews. There have been 18 customer complaints closed in the last three years, eight of which were handled in the past 12 months. It should be noted, however, that many of these complaints are related to the credit union’s other services, rather than the company’s mortgage products.

*Information collected on December 12, 2018

Mortgage Qualifications

Bethpage Federal Credit Union does not publicize its minimum credit score requirements. However, Bethpage does provide FHA loans, which typically require a minimum FICO score of 580 to qualify for the low down payment advantage of just 3.5 percent down.

Additionally, to qualify for the lowest rates possible on all of Bethpage’s mortgage loan products, a minimum credit score of 740 is needed.

It is standard in the industry to require a credit score of at least 620. Anything below that number is generally considered to be poor, though it is possible to obtain loans with bad credit from certain lenders.

Credit Score	Quality	Ease of approval
760+	Excellent	Easy
700-759	Good	Somewhat easy
621-699	Fair	Moderate
620 and below	Poor	Somewhat difficult
N/A	No credit score	Difficult

While FHA loans can be obtained for as little as 3.5 percent down, most loans require a down payment that is closer to the industry standard of 20 percent.