What Can You Get From a Credit Union?

credit union wealth management

credit union wealth managementWhen you have money to save, you usually go to a bank to deposit it. Banks offer security for your money, but when they impose fees and similar hassles, it could make you wish you were better off with a different entity.

Thankfully, one such entity exists, called a credit union. You have probably heard of it, but how exactly does a credit union work, and what can you get from it? Here are four basics explained by Mutual Marketplace to get you started.

Like a Bank, But Friendlier

Credit unions work very similar to banks in that they offer savings or checking accounts, handle home, car and personal loans, as well as process mortgages. The difference is that credit unions are smaller than banks, and they are non-profit cooperatives.

This means credit unions are run by local efforts that put customers first and do not have any big business investors.

Committed To Communities

Whereas a bank is normally open to the public, a credit union usually caters to its community first. For example, credit unions could have eligibility requirements stating you should be an employee or a student of a particular university, or a resident of a certain neighborhood.

Unlike banks, which have ATMs everywhere, credit unions only have many branches due to their size. This is why it is ideal that credit unions serve the local community first.

Credit Union Guarantee

You do not have to worry about where your money goes when depositing to a credit union. This is because it has insurance from a larger entity that governs the cooperatives. For instance, the National Credit Union Association supervises and regulates American credit unions.

Proactive Officers

Members usually enjoy lower fees and better interest rates because credit union officers are more willing to help them instead of having to satisfy investors the way banks have to. For example, credit unions offer “source-to-pay” solutions in which they basically help you acquire goods or services while considering costs.

These four characteristics are reasons a credit union might be better for you.

Pay Off Your Mortgage Earlier Than Expected in 4 Easy Steps

Mortgage loan documentsApplying for a loan in mortgage companies in Fort Myers is the best way to get your own home. However, a mortgage is a huge financial commitment that you’ll have to pay off for years.

But what if there’s a way to shorten your loan? This may sound impossible at first, but you can pay off your mortgage in less than ten years if you follow these tips.

1. Get a house that you can afford.

Choosing the right house can be a challenge, especially when there are so many options available. You can make it easier if you look at houses that are within your budget. So, examine your monthly earnings to help you determine how much you can spend on a house.

2. Consider paying bi-weekly.

You could consider paying half payments every two weeks instead of making just one monthly payment. It may seem the same, but since there are 52 weeks in a year, paying it bi-weekly will ensure that you’ll be making 13 full monthly payments each year.

3. Make extra payments.

Most mortgage companies will allow you to make an extra payment and put it towards your principal balance. Doing so can help you pay a bit of the principal much earlier than expected. This will save you in interest charges in the long run.

4. Be frugal.

It’s not bad to be frugal at times, especially when you want to finish your loans much faster. So, try to be frugal and think of ways on how to reduce your bills.

You could cut off your cable service, for instance, if you already have a stable internet connection. There are several streaming sites that you can choose from, which is a much more affordable option than a cable service.

Paying your mortgage much faster is the best way to free yourself from financial commitment. You might want to talk to a financial adviser or think of ways on how to save your money and put it on to your existing loan.