MAKE MONEY ONLINE POSTS: LMCU Mortgage Rates Review

الثلاثاء، 18 يونيو 2019

LMCU Mortgage Rates Review

Lake Michigan Credit Union began in 1933 as Grand Rapids Teachers Credit Union. Its name changed to LMCU in 2002, and it expanded to Florida in 2015.

Today, LMCU has more than 400,000 members and holds nearly $6 billion in assets. It has an A+ Better Business Bureau score and has been BBB accredited since 2014.

In this review, we will cover everything you need to know before purchasing a mortgage through LMCU.

LMCU Facts

Offers a $300 refund if it can’t beat a borrower’s most competitive offer
Provides numerous programs including fixed-rate, adjustable-rate, and FHA loans–as well as refinancing options
Certain programs offer up to 100 percent financing
One-time closing construction, land, and renovation loans make financing the construction or remodeling of a new purchase seamless
Offers a Doctor Mortgage product specific for medical, dental, and orthodontic professionals buying a home or relocating a practice
First lender in Michigan to offer The USDA Rural Development Construction Loan
States serviced: Services offered throughout Michigan’s lower peninsula and in 14 Florida counties.

LMCU Overview

LMCU is a credit union that serves 421,251 members in Michigan and Florida. It’s Michigan’s largest purchase loan originator, having processed 11,411 mortgages in 2017, totaling more than $2.3 billion.

However, it is still not among the top 10 mortgage originators in the U.S., the least of which (United Wholesale Mortgage) originated a total of $22.9 billion in 2016. It’s also not named in the Consumer Finance Protection Bureau’s 2017 Mortgage Market Activity and Trends report, probably due to its size. That said, LMCU offers many of the same loan types that some of the top players in the mortgage market do, and may be able to provide competitive rates.

Concerning loan options, LMCU offers many products that can be geared toward many members in various fields and levels of income. Though it has received some complaints on the BBB, the credit union has generally responded in a timely fashion, and attempted to resolve the issues.

It has a good reputation on sites like BBB, and other online resources like Zillow show plenty of positive reviews. Its mortgage qualifications appear to be flexible. While LMCU generally prefers to work with borrowers with a specific debt-to-income ratio and credit score, there also seem to be options for people who don’t meet these requirements, such as the FHA mortgage loan.

News about LMCU is generally positive. The credit union offers scholarships and sponsors a Home Makeover Giveaway. The most recent winner of this random-draw contest received a $50,000 prize.

Home Loans Offered by LMCU

LMCU carries a wide range of loan products that can benefit many types of consumers. The credit union offers loans for purchases, refinancing, building, or renovating homes. A dedicated mortgage staff is prepared to walk consumers through the process.

LMCU prides itself on helping its members save money. This ideal comes through with The Lake Michigan Credit Union Guaranteed Low Rate, which ensures that borrowers get the lowest rate they can find, or be credited $300 at the time of closing if a legitimate competitor offers a lower rate.

Fixed Rate Loans

LMCU provides conventional fixed-rate mortgages, with terms ranging from 15 to 30 years. This is the credit union’s most popular mortgage product and is usually good for homebuyers who want to stay in their home for many years.

Adjustable Rate Loans

Variable rate mortgages or ARMs are available in 3/1, 5/1, 7/1, and 10/1 year terms. This means the interest rate will remain unchanged for 3, 5, 7, or 10 years, respectively, and will then will be adjusted annually based on market conditions. Rate increases have a pre-set cap to protect borrowers from extreme market changes. ARMs are ideal for people who may need to move within a few years or want a low monthly payment at the beginning of the loan.

Jumbo Loans

LMCU offers jumbo mortgages for loans that exceed the conventional mortgage limit, which is $453,100 in most markets. Jumbo loans can provide financing up to $2 million or more, in some cases. It requires a five percent down payment for these loans.

FHA Loans

LMCU provides 15- and 30-year fixed-rate FHA loans. These have flexible approval requirements, which means this mortgage option may be well-suited to buyers who have little or no credit history, or those whose credit has some dings. These also features low down payments and private mortgage insurance premiums.

VA Loans

VA loans don’t require a down payment or mortgage insurance, making these attractive options for qualifying members. Military service members, veterans, and eligible surviving spouses may apply for these loans.

Cash-out Refinance Loans

These loans offer a variety of refinancing options, including 15-, 20-, and 30-year fixed-rate refinances, 3/1, 5/1, and 7/1 ARMs, and 15- and 30-year FHA refinances.

USDA Loans

LMCU offers Rural Development loans to borrowers who meet the income requirements and want to purchase a primary residence that fits the location criteria. With no down payment required, this is an affordable option for low- to moderate-income families who want to live in rural areas. The USDA Rural Development Construction Loan also allows borrowers looking to build their own homes to purchase land that meets the criteria.

Bridge Loans

Bridge loans provide short-term financing to help prospective buyers make a down payment. They’re set up as a revolving line of credit that draws on equity from a current primary residence. Members can borrow up to 80 percent of the home’s value and have an 11-month draw period and a 12-month balloon.

Doctor Loans

LMCU offers a unique mortgage option tailored specifically to borrowers in the medical, dental, and orthodontic fields. These feature no mortgage insurance requirements, low down payment options (0 to 5 percent), and loan amounts which can be as much as $1.5 million or more in exceptional cases.

Community Edge Mortgage

LMCU offers a mortgage geared toward educators, first responders, medical professionals, military personnel, and government employees. This mortgage type requires a minimum three percent down payment and doesn’t have income limits or require a homebuyer education course. This also comes with $500 off closing costs and a $500 reward after the 60th on-time payment, plus offers six months of payment protection for free. This option is available for new purchases or refinances.

LMCU Mortgage Customer Experience

LMCU members can get the process started by filling out an online application or by calling a toll-free phone number provided on the website. The site also offers a live chat function, an email form, and a process by which to schedule appointments. Interested users can sign up for Rate Watch alerts, which deliver email updates regarding rate changes.

Each loan information page has a variety of online calculators, including one for mortgages, as well as others to help readers decide whether they should rent or buy, how much home they can afford, whether they should refinance, and whether they should pay points for a lower interest rate.

Borrowers can manage their loans through the online Mortgage Service Center, where they can view their current balance and pay off amounts, and get information about how to make payments.

“They helped me close on time and with very competitive loan terms,” one member wrote on the BBB site in Oct. 2017. “I could tell that the loan officer and her team truly cared about me and my loan and that they were working hard to make it happen.”

Another expressed frustration at the loan process, however, writing in December 2016 that he and his wife had “been trying to complete the renovation loan process since July. It’s now December, and we’re still 30 + days out, and on our 3rd appraisal. This is with both of us having 780+ credit scores, and providing all requested document[s] … ” The member ended his review by suggesting that readers explore other options.

LMCU Lender Reputation

LMCU is a credit union founded in 1933 that provides mortgage options as well as other types of loans, savings and checking accounts, investment options, and insurance products for families, individuals, and businesses. It’s federally insured by the NCUA and is an Equal Housing Lender.

The Federal Housing Administration insures FHA loans, and the VA guarantees a portion of VA loans.

There were 16 complaints submitted to the BBB between 2016 and 2018, as of Dec. 4, 2018. Though each of them has been listed as either answered or resolved, some customers reported negative experiences concerning the resolution. The Consumer Finance Protection Bureau lists no actions taken against LMCU.

Information Collected on Dec. 4, 2018

LMCU Mortgage Qualifications

LMCU generally prefers applicants to have a 45 percent debt-to-income ratio but is willing to consider those who don’t. For first-time homebuyers (or those who haven’t owned a home during the previous three years), the minimum down payment required is three percent.

For borrowers who aren’t a first-time homebuyer, the minimum down payment is five percent. However, specific programs offer lower down payment requirements, such as the Doctor Mortgage and VA loan programs, which require a zero percent down payment in some cases.

Borrowers can use gifted funds from a qualified family member, which usually means a blood relative. The bank will also consider down payments made with help from some down payment assistance programs. Finally, current homeowners can use the bridge loan as a line of credit to fund their down payment.

Most conventional loans require a minimum credit score of 620, though the FHA minimum requirement is 580.

Credit Score	Ranking	Difficulty to get a mortgage
800-850	Exceptional	Very Easy
740-799	Very Good	Easy
670-739	Good	Easy
580-669	Fair	Possible
300-579	Very Poor	Difficult