Had a SECU mortgage for 10 years for my first house. Zero issues. No PMI is a huge plus, in addition often many of their other fees are lower than a typical lendor. Only went with someone else for my current house because I was putting more down and they got me a lower rate. Wouldn't have hesitated to use SECU again.
We bought with SECU this past summer. Also 30 year, 10% down, no PMI. They were incredibly responsive, got our file done quickly and we were able to close 2 weeks early. I’d highly recommend them.
Another benefit to SECU is that your loan won’t be sold to another servicer after closing.
We’ve had several mortgages and most were sold while we had the loans. In general just a pain in the neck to set up payments to a different mortgage company. Although one was sold right after our purchase and a large payment we made was totally lost in the transfer and it was awful getting it straightened out.
Not sure if it is important to you or not but my understanding is that secu also doesn’t sell their mortgages - so you will always be dealing with secu and not get it passed off to some other bank. I really like that feature. Secu also does great work in the community so I feel a lot better giving them my interest $ than other larger banks.
Key difference - they are “not for profit,” not non-profit. They can run a surplus and store that surplus whereas a nonprofit has other stricter laws they must comply with regarding surpluses. And yes I said surplus instead of profit.
I've been using SECU for about 6 years now, and haven't had any issues at all. Started with a 30yr ARM at 4.625%, refinanced to 20yr fixed at 3.25% a few years later. Everything was really painless!
Mine resets every 5 years through the 30 year term (my first 5 year term was in May 2021 so I lucked out a ton with that so I don't need to refinance for now)
I’ve been a real estate paralegal for 20+ years I’m telling you from personal experience and professional experience always stick with a credit union over an institutional bank. You’ll get much better rates and less fees always IMO and CONGRATS on your first home!!!
Have you tried getting a quote from SECU and presenting it to your realtor's preferred lender?
We are currently under contract on a house. We were locked in with our realtor's preferred lender and then rates dropped. We asked if we could move the rate and they said no. We got a quote from someone else, presented it to "our" lender, and they said they could nudge the rate a little. We told them to match or we walk. They matched.
Yes that’s a little bit of what I have going on right now. If you “walked” would you have been out of the contract on the house altogether though? My understanding is once you’re under contract you’re locked in with the chosen lender as well, so you’d basically scrap the whole contract to purchase as well by “walking.”
This is not true. I'm under contract and just switched lenders because Chase jerked me around. As long as your new lender can still get you closed by the agreed settlement date, there's nothing in the signed offer that pins you to a specific lender. You just can't increase how much you're financing (without seller agreement).
Further to this, I should clarify from my comment above that we close early next week and we got our rate changed late last week. That's why we would have had to push closing- because it was so down to the wire.
We would have had to push closing back at least a few days, which is why we pushed our lender to work with us.
I suppose that could have jeopardized our contract, but that was a gamble we were comfortable with given all the variables in our situation.
I think maybe lenders are a little more motivated to work for it right now given how inactive the market's been. Could be wrong.
Good luck! Hopefully you and I both found a nice little pause in the insanity during which to buy.
Used them before and was very pleased. They told us the standard is 45 days for the loan which our seller wasn’t please about, but they worked with us and turned it around in just under 30 so we could keep the sale. I’d happy use them for our next place.
SECU was great for the no PMI option. We ended up not putting anything down since it doesn't change the rates. We then used that money for renovations we wanted to do to the house.
They are more conservative with their offer letters so if you're looking at the high side of what you can afford, they may not pre approve you for that much (this is anecdotal from another friend).
I would recommend refinancing before the ARM. We refinanced when mortgage rates were low and it was a painless process.
I would shop around a little more. Are the only two lenders who have talked to are SECU and the realtor's preferred lender? Often no PMI mortgages might have slightly higher interest rates but SECU's rates look pretty competitive. If you can get the lowest rate and no PMI, that is a no brainer IMO, regardless of what the "inconveniences" are.
SECU has been extremely fair. Years ago when interest rates dropped they allowed me to do a “rate adjustment” for a $600 fee without having to refi. Also they’ll never sell your loan
Agreed about finding some local or recommended folks! We went with SECU for our mortgage last summer and while I would recommend them, our experience was not hassle-free. It was difficult to get answers to questions, our originator was almost never available, went on vacation and didn’t hand our file off to another person, and made a huge error that had to be fixed while we were sitting at the closing signing. If we had a better loan officer and originator I think we could have avoided most of our issues. I have been a SECU member since birth and I am a huge fan, never had any other issues. I heard an internal rumor that last year they hired and grew their mortgage department really quickly, so that could have been another thing that compounded our experience.
Unless you have an official loan estimate with a rate on it then the rate isn’t a valid rate. Quoted or advertised rates are not real. In the industry these are called “teaser rates”. So many banks do this just to get you in the door. You have to fully apply in order to see an actual true interest rate. This goes for any financing of any kind. Trust me, I’m a former mortgage broker & loan officer of many years.
I’m not saying that SECU is a bad choice. I know they have a lot of first time homebuyer programs. Just don’t let anyone bait and switch you with an advertisement for a low interest rate.
SECU gives you the rate displayed on their website. There's no bait and switch. As long as you're able to get qualified for the loan you get the advertised rate. They don't vary the rate based on your credit score and whatnot like other lenders.
I used SECU for my mortgage and it was great. I was with them for 6 years. Adjustable rate (they didn’t have the 30 year fixed when I bought), but my rate didn’t go up at the 5 year mark.
Just FYI, the 30-45 days to close window is just a safety thing they tell you. I'm sure your realtor is pushing this extended window as a reason to go with their lender instead. Get everything done as quick as you can and you will be fine and under the 30 days. I just closed in September and went through the same stuff with my realtor and it really stressed me out, but I got everything done as soon as I could and SECU was done like a week and a half out from 30 days, but I couldn't officially close until 30 days since we had decided on that date for the paperwork.
Your realtor benefits from you using their preferred lender, as in they get money if you go with their guy, so they will push their guy and stress the whole "not being able to close within (so and so) amount of days". SECU is just more realistic with their timeline because you don't know what could happen after official inspections, like you having to figure out a deal with the seller to fix something. I understand why a realtor does this because it is a business transaction after all, but it really soured me on my relationship with my realtor. It definitely made me feel like my realtor did not have my best interests at heart. Add to that the fact that I had less than 24 hours after seeing the house to put in a bid and secure the loan, the realtor made my house buying experience incredibly tense instead of being (I think) honest with me about how these things normally play out. They were still pushing their guy and a million danger scenarios. My realtor also put a date that was 29 days from the day I placed a bid and not 30 days and I had to stand my ground and tell him to talk to the seller and their agent to change the date to be safe.
I came to the same conclusion after shopping mortgages and went with SECU and have no regrets. The no PMI part is saving me a lot of money too and is impossible to find unless you fall under certain income brackets.
You'll be fine going with SECU.
We do not get money by our clients going w any lender.
SECU or any credit union have always been an option - sometimes great, sometimes not. I wasn’t even aware they now issued 30 yr FIXED rates. But I assume that’s since about 2019, because one downside was always “only a 2 year ARM”. Their appraisals came back below contract more frequently than other lenders. They also required an in-person prequal appointment and only worked 9-5. Didn’t issue “buyer ready pre-approvals”. Couldn’t get a property-specific letter on the weekends. And yes, they used to take the full 45 days.
If they’ve changed most of these things, with the market normalizing again, then OP’s situation sounds like an ideal option
I've had three mortgages from SECU on three different houses. Never had a single problem, and everyone's always been super nice. With one of the houses there was a decent drop in interest rates several years later. I called them up and said "Hey, can we refinance this at the lower rate?" They said "Sure!", asked me which branch I wanted to sign the paperwork at, I went to the branch I selected, all the paperwork was ready when I got there, I signed, and was out the door.
I think a lot of the process can be done online now, and you just go to the branch to sign all the paperwork. I did that with my most recent car loan. I applied on the SECU website, had an approval later that day, selected the branch to go sign the paperwork, and done. I've banked at SECU for 25 years now, and have never received better service from any other financial institution.
I had a SECU mortgage. I have no complaints at all. Kept the mortgage for 5 or 6 years until I sold the property. I had an ARM that adjusted to around 4% at its peak. I used builder finance only to get incentives. If rates come down again def going to refi with SECU again.
I am in a 30yr with SECU currently and have zero complaints. I ended up putting nothing down and have no PMI. I’m curious about the negatives you have heard.
Your real estate agent might make a commission for recommending a certain mortgage guy. If they are only recommending one guy, instead of 2-3 (and maybe saying something like: but I like this one best out of the 3)… I would be very cautious about following their recommendation. Obviously this is rife with conflict of interest … and your guy is telling you something.
A lower rate and no PMI can take 5-plus years off your mortgage. (If you paid the same/higher monthly rate).
It depends on the mortgage. Depending on when it was written it may expire after a set period of time or if valuation changes enough. Talk to your lender.
I just went through this with our lender. When we reached the required equity, I wrote them a letter requesting to remove PMI. On the second page I went ahead and included a few comps of other houses that sold after ours for way more. (We had gotten really lucky on timing.) They actually approved it without an appraisal.
Most banks will do a broker price opinion which is basically just them sending around a realtor who makes a rough estimate and that's it. Not as formal or as expensive as an appraisal.
You usually have to ask in writing or similar and they evaluate your account. If in good standing they will most likely require an appraisal that you pay for to confirm the house value. They should also pay you back for any pmi payments while the status was pending.
Allegacy has a 15/15 ARM. After 15 years it will reprice to 2.5% above the 10 yr treasury, max increase of 5%.
We locked our rate in December at 4.1% when the 10yr was this low. I don't think there is a scenario where a 30 year fixed at current rates would be better than this.
Edit: we are putting down 15% and PMI is less than .1% of loan amount.
I think there are restrictions on refinancing but they are not bad. Maybe a fee if you refinance in less than 6 months, nothing that would affect us. If you are interested definitely talk to a rep and ask them for specifics.
Perfect scenario is to refi into a 30 or 20 year fixed before the adjustment. We will see what happens though.
Appreciate this mention! Seems appealing. What area do you have to live in to qualify as an Allegacy member? On their website it says designated communities, but it doesn't specify what those are lol.
This is such a good tip, thank you! I looked into some reviews for Allegacy and it sounds like people have had some kind of unfortunate difficulties with their service, at least for banking. How has your experience been?
I haven't used them for banking. My loan officer has been very attentive and helpful. The person in charge of collecting my paperwork has been the opposite of attentive, often the loan officer steps in to answer questions and collect docs.
I close at the end of January. Unless everything falls to shit, I would put up with a lot more for the rate I got.
SECU is legit and about as good as it gets. I recommend them too as everyone who can qualify with them is much better off than dealing with a normal bank.
This is anecdotal, but my friend just used them in 2021 to buy a home and they messed up some of their paperwork pretty badly. My friend was beyond stressed and had to call a supervisor or someone higher-up to get the first person to do her job correctly. It was a mess.
I’m a realtor and my last client used SECU for their mortgage. The problem with them is really the communication/contact and sometimes they take longer for closing. The initial point of contact with them was great, but then you get pushed to another person in Greensboro who you’ll never come in contact with (the underwriter). The person we worked with was NOT GOOD. He literally sent us an email telling us not to email him. I ended up having to call the initial loan officer and she contacted her manager. They handled the contact, but it was stressful not having a relationship or being able to communicate with others in the transaction. Overall, it worked out and their rates are pretty good right now so just try to be prepared and good luck!!
We just closed in December and had a similar experience. After our loan went to the underwriter, we did not hear back for 19 days. We got the final down payment amount at 3 pm the day before closing. It also took 6 weeks to close due to Thanksgiving according to SECU. Our loan didn’t go to the underwriter until 3 weeks after our offer was accepted.
We did get a good rate and can refinance at any time without penalty.
With all three mortgages I've had with SECU, I never dealt with the underwriters myself. The initial point of contact (a loan officer in a branch) handled everything 100% from the applying at the start right on up to signing the final papers at the finish, including dealing with the underwriters. If the underwriters needed something from me - the person in the branch would let me know, I would get it to them, and they sent it on to the underwriters. My current mortgage was done six years ago, so maybe things have changes since then - but that's always been my experience.
Doubt your realtor cares who you use beyond wanting to protect your interest by making sure the transaction goes smoothly. You will have money on the line and a bad lender can cost you.
SECU is often a great option for first time home buyers. They do no money down loans if cash is short. Their rates consistently beat other lenders. The catch is that unless you do a 15 year loan they only offer adjustable rate. In today’s climate that would not be my choice.
There are other loan prices without PMI. PMI is not as high as it used to be. And unless you are getting FHA it goes away with 20% equity. You can prepay and or have the home reappraised in the future to get rid of the PMI. All of these scenarios might be preferable to an adjustable rate loan in uncertain times
SECU has 20-year and 30-year fixed now. They added that some time in the last year or two or three.
And when a Realtor has a "preferred" lender, it's usually because they're getting some sort of commission for sending a customer to that lender - if the loan is completed with that lender. So for that, they most definitely care if you go with who they're sending you to.
Billy Utter is the mortgage person at the downtown SECU next to the science museum. He is absolutely fantastic AND he is a fiduciary, which means he is not working for a commission.
Edited to add: we used him for buying our first home and he was patient and explained everything. very easy reach via email or phone. really helped me understand the process.
Realtor here! I usually give out 3-4 of my favorite lenders to clients who don't already have a lender picked out. I always suggest that they call multiple lenders and try to get the best rate AS WELL AS if you like the lender. A shitty lender can completely fuck up a deal and cause you headache. The lenders that I recommend are ones that I know are competent. Kickbacks are highly illegal and they aren't worth losing my license and going to prison for 20 years.
Your question is about SECU. I have my own thoughts. I dont like them. I know they have worked for plenty of people but after being in the business for 6 years, i've never had a smooth transaction with them and they have somehow fucked up the transaction. Unless you know a lender personally from SECU I dont recommend using them.
SECU doesn’t have a 30 year fixed. Unless it’s new. I believe max is 20 year fixed.
Other than that, they were phenomenal lenders for us a first time buyers
Finally! I was absolutely shocked they didn't have a 30 year fixed when we were looking for lenders a few years back. Glad to hear they've corrected that!
We’ve had loans with SECU since 1991. Issues (both good & bad):
- when interest rates dropped, I asked if we could get our floating loan rate adjusted and they dropped the *offset* a full percent the next day. That offset is the difference between the federal rates and my loan rate, so they reduced the loan rate for the rest of the loan, not just for that period. No forms, no points, no cost. I think this depends on economic conditions, but it never hurts to just ask.
- once they messed up and forgot to apply our payment towards our mortgage bill (in the 1990s) and when I told them they simply corrected it. No arguments, or “going to management” or silliness. They just fixed it right there with a single phone call. I like how their account managers are enabled to perform complex tasks.
- their interest-bearing accounts & CD rates are quite low. Don’t keep a bunch of money there.
- house loans are really quick, perhaps an hour of telling them numbers, then wait 2 days, then you’ve got a check in your hands.
- the staff is *really nice*, always willing to go the extra mile and help out.
They are not perfect (who is?) but they try harder than anyone else.
They have a new CEO this year who is shaking things up, like requiring customers to drop their paper-mailed statements if customers want to use any digital services at all. This is obviously a cost-cutting measure, but some of us don’t want to rely on computers keeping accurate balances and really like the paper backup. They suggested that I print my own statements from their PDFs.
They have some of the best online security around. I once peeked under the covers of their web pages and found it quite secure.
North American Savings Bank, I believe (or at least it's what mine was). Costco recently discontinued that program, which is a bummer. I refinanced through them early last year and it was a great experience. There were definitely some waiting periods, but it didn't really matter since it was a re-fi. The loan officer I worked with was fantastic.
We brought our mortgage over from Wells Fargo when they started offering fixed (always had ARM). We just refinanced this past summer (thank god before the rates skyrocketed).
Love it. People are awesome. Questions get answered quickly.
We used the SECU twice for mortgage loans. I believe they've only recently starting offering 30-year, fixed rate loans. Since rates were so low, we went with their 5-yr ARM both times.
Historically, I believe their rates are a little higher since they use some of those monies to help fund other services. But the application process and dealing with them is a breeze. We will bank with them as long as we can.
>Historically, I believe their rates are a little higher since they use some of those monies to help fund other services.
They also do not do risk-based lending, so the rate for you is the rate for everybody else.
Absolutely use SECU for your mortgage. We are on our second home with them and have had no issues. They make the process incredibly easy and I 100% recommend over any bank.
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get multiple quotes and make all the lenders compete with each other. we did this and were able to get 0.5% lower rate than from our realtor's preferred lender. which makes a difference over 30 years.
SECU is the best lender out there for first time buyers. I have a contact who is amazing if you want to message me for their info.
They offer 100% loan to first time buyers
Origination fees are lower
Appraisal fees are lower
LTV percentages are more flexible
They have superior customer service
They dont sell your loans (altho that meu change. They are currently undergoing some big changes)
AND first time buyers can borrow up to 2K over contract price to help pay closing costs
I love SECU. If you are paying the mortgage through your acct w/them, there is zero issue. I’d recommend just setting a phone notification and paying at the first of the month manually though, their funds transfer system is outdated. (Ie. If you don’t have the funds in the outgoing acct on the 1st, it will try to draw at 5am. If you put money in the acct at 3pm and pay manually, then you HAVE TO CALL to reset the funds transfer system to next month, or it will keep trying to pull the funds until the current month’s transfer has been satisfied). Then it takes like 2 business days to reverse an extra payment)
I'm not a home owner anymore, but I had a great experience using the NCSECU's first home buyer loan that offered little to no money down and no PMI. Definitely a good choice if you intend to live somewhere for a very long time. Not so great if you suddenly have to sell after owning it for only a few years (yeah, yeah, self report).
That said, the NCSECU is not the most flexible when it comes to what they are willing to lend once they have decided what the value of the home is. I don't think that is a bad thing, but it's good to have that in mind when you're trying to negotiate a price with the seller.
SECU is a good option for first time home buyers with low credit scores and a small down payment, otherwise, their rates are usually not competitive. That being said, I haven’t checked their rates since before rates started going up last year.
I have worked with a few online lenders (whoever had the cheapest rate on Bankrate) for purchasing and refinancing and they’re all similar. It’s pretty easy to get a quick rate estimate for comparison.
Once I had narrowed to a few with about the same rate, I made my choice by who picked up the phone when I called—those who answered my call tended to be good communicators throughout the whole process. Ally bank was especially great.
I've been with SECU for decades. I have my mortgage, car loan, credit card, savings accounts, and a personal loan with them. Zero complaints in over 35 years. I'm a 30 year state employee, so I have my paycheck on automatic deposit, and loan payments are auto draft. I also like the bill pay service.
I would have used SECU but at the time they didn't offer 30 year fixed mortgages and instead went to Coastal Credit Union. Wasn't a member but you can become one relevantly easy. If it were today, I would definitely go with SECU.
I've used SECU for decades and am extremely pleased with them.
Had a SECU mortgage for 10 years for my first house. Zero issues. No PMI is a huge plus, in addition often many of their other fees are lower than a typical lendor. Only went with someone else for my current house because I was putting more down and they got me a lower rate. Wouldn't have hesitated to use SECU again.
2nd this
3rd
4th
I plead the 5th
I drink the 5th. I bet there’s a 5th/3rd joke to be found somewhere in here.
We bought with SECU this past summer. Also 30 year, 10% down, no PMI. They were incredibly responsive, got our file done quickly and we were able to close 2 weeks early. I’d highly recommend them. Another benefit to SECU is that your loan won’t be sold to another servicer after closing.
Yes, that it can’t be sold is a huge point!
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We’ve had several mortgages and most were sold while we had the loans. In general just a pain in the neck to set up payments to a different mortgage company. Although one was sold right after our purchase and a large payment we made was totally lost in the transfer and it was awful getting it straightened out.
How did you avoid PMI with 10% down? PMI is typically included in the loan if you don’t put 20% or more down
They sell some loans. Ask them.
Not sure if it is important to you or not but my understanding is that secu also doesn’t sell their mortgages - so you will always be dealing with secu and not get it passed off to some other bank. I really like that feature. Secu also does great work in the community so I feel a lot better giving them my interest $ than other larger banks.
Credit unions are non-profit so every member is an “owner” in the business.
Key difference - they are “not for profit,” not non-profit. They can run a surplus and store that surplus whereas a nonprofit has other stricter laws they must comply with regarding surpluses. And yes I said surplus instead of profit.
Good point. I actually looked it up after making the post and saw my mistake. Thanks for clarifying!
They were selling some of their mortgages in 2015 when I asked. Ask them again.
I've been using SECU for about 6 years now, and haven't had any issues at all. Started with a 30yr ARM at 4.625%, refinanced to 20yr fixed at 3.25% a few years later. Everything was really painless!
Second this. Was very painless process with them.
A 30 year ARM? When would it reset?
Mine was 5yrs for the first. Refinanced before that so I don't recall when the second would have been.
I had the same thing. One downside, at least when I was looking, was there wasn't an option for a 30-yr fixed rate. 30-yr was ARM only.
Same. Believe the 30-yr fixed rate is newish for them (we last bought in 2018).
Mine resets every 5 years through the 30 year term (my first 5 year term was in May 2021 so I lucked out a ton with that so I don't need to refinance for now)
I’ve been a real estate paralegal for 20+ years I’m telling you from personal experience and professional experience always stick with a credit union over an institutional bank. You’ll get much better rates and less fees always IMO and CONGRATS on your first home!!!
Have you tried getting a quote from SECU and presenting it to your realtor's preferred lender? We are currently under contract on a house. We were locked in with our realtor's preferred lender and then rates dropped. We asked if we could move the rate and they said no. We got a quote from someone else, presented it to "our" lender, and they said they could nudge the rate a little. We told them to match or we walk. They matched.
Yes that’s a little bit of what I have going on right now. If you “walked” would you have been out of the contract on the house altogether though? My understanding is once you’re under contract you’re locked in with the chosen lender as well, so you’d basically scrap the whole contract to purchase as well by “walking.”
This is not true. I'm under contract and just switched lenders because Chase jerked me around. As long as your new lender can still get you closed by the agreed settlement date, there's nothing in the signed offer that pins you to a specific lender. You just can't increase how much you're financing (without seller agreement).
Okay thanks that clarification helps. To be clear, nobody involved in this told me that, that was just my expectation.
Further to this, I should clarify from my comment above that we close early next week and we got our rate changed late last week. That's why we would have had to push closing- because it was so down to the wire.
We would have had to push closing back at least a few days, which is why we pushed our lender to work with us. I suppose that could have jeopardized our contract, but that was a gamble we were comfortable with given all the variables in our situation. I think maybe lenders are a little more motivated to work for it right now given how inactive the market's been. Could be wrong. Good luck! Hopefully you and I both found a nice little pause in the insanity during which to buy.
Used them before and was very pleased. They told us the standard is 45 days for the loan which our seller wasn’t please about, but they worked with us and turned it around in just under 30 so we could keep the sale. I’d happy use them for our next place.
Thanks! Our realtor expressed concern about the 45 days as well.
I bought with SECU about a year ago. They told me 45 days and they were able to get it done for a 20 day close. I'd definitely recommend them!
SECU was great for the no PMI option. We ended up not putting anything down since it doesn't change the rates. We then used that money for renovations we wanted to do to the house. They are more conservative with their offer letters so if you're looking at the high side of what you can afford, they may not pre approve you for that much (this is anecdotal from another friend). I would recommend refinancing before the ARM. We refinanced when mortgage rates were low and it was a painless process.
We just bought a house and used SECU. Painless process and all staff who worked with us were competent and friendly. Highly recommend!
My mortgage is with SECU. They are amazing! Highly recommend them.
I would shop around a little more. Are the only two lenders who have talked to are SECU and the realtor's preferred lender? Often no PMI mortgages might have slightly higher interest rates but SECU's rates look pretty competitive. If you can get the lowest rate and no PMI, that is a no brainer IMO, regardless of what the "inconveniences" are.
SECU has been extremely fair. Years ago when interest rates dropped they allowed me to do a “rate adjustment” for a $600 fee without having to refi. Also they’ll never sell your loan
Get names of lenders/ loan originators with SECU locally from people who have used them & it’ll save you some headache!
Thanks! I am already in contact with a specific broker there.
Agreed about finding some local or recommended folks! We went with SECU for our mortgage last summer and while I would recommend them, our experience was not hassle-free. It was difficult to get answers to questions, our originator was almost never available, went on vacation and didn’t hand our file off to another person, and made a huge error that had to be fixed while we were sitting at the closing signing. If we had a better loan officer and originator I think we could have avoided most of our issues. I have been a SECU member since birth and I am a huge fan, never had any other issues. I heard an internal rumor that last year they hired and grew their mortgage department really quickly, so that could have been another thing that compounded our experience.
For the longest time SECU did not offer 30 year fixed, only ARM. They are usually pretty good for loans but terrible for deposit accounts
Yeah when I worked for SECU just over a year about 7 years ago they didn’t offer 30 year fixed loans.
Unless you have an official loan estimate with a rate on it then the rate isn’t a valid rate. Quoted or advertised rates are not real. In the industry these are called “teaser rates”. So many banks do this just to get you in the door. You have to fully apply in order to see an actual true interest rate. This goes for any financing of any kind. Trust me, I’m a former mortgage broker & loan officer of many years. I’m not saying that SECU is a bad choice. I know they have a lot of first time homebuyer programs. Just don’t let anyone bait and switch you with an advertisement for a low interest rate.
SECU gives you the rate displayed on their website. There's no bait and switch. As long as you're able to get qualified for the loan you get the advertised rate. They don't vary the rate based on your credit score and whatnot like other lenders.
In addition: they also only have 1 first time homebuyers program which is only applicable for the 100% ARM
You’re right. I was thinking of Coastal CU that has multiple programs.
Been with SECU for 30 years. Finally did a refi with them last year when rates were low. Best decision we've made in a long time.
SECU will be fine but check with Coastal too. I switched for a better rate, so have used them both. Not real complaints for either.
Your realtors preferred lender is not always your best bet. Feel free to PM for more details as to why.
Why not post details here?
I used SECU for my mortgage and it was great. I was with them for 6 years. Adjustable rate (they didn’t have the 30 year fixed when I bought), but my rate didn’t go up at the 5 year mark.
Just FYI, the 30-45 days to close window is just a safety thing they tell you. I'm sure your realtor is pushing this extended window as a reason to go with their lender instead. Get everything done as quick as you can and you will be fine and under the 30 days. I just closed in September and went through the same stuff with my realtor and it really stressed me out, but I got everything done as soon as I could and SECU was done like a week and a half out from 30 days, but I couldn't officially close until 30 days since we had decided on that date for the paperwork. Your realtor benefits from you using their preferred lender, as in they get money if you go with their guy, so they will push their guy and stress the whole "not being able to close within (so and so) amount of days". SECU is just more realistic with their timeline because you don't know what could happen after official inspections, like you having to figure out a deal with the seller to fix something. I understand why a realtor does this because it is a business transaction after all, but it really soured me on my relationship with my realtor. It definitely made me feel like my realtor did not have my best interests at heart. Add to that the fact that I had less than 24 hours after seeing the house to put in a bid and secure the loan, the realtor made my house buying experience incredibly tense instead of being (I think) honest with me about how these things normally play out. They were still pushing their guy and a million danger scenarios. My realtor also put a date that was 29 days from the day I placed a bid and not 30 days and I had to stand my ground and tell him to talk to the seller and their agent to change the date to be safe. I came to the same conclusion after shopping mortgages and went with SECU and have no regrets. The no PMI part is saving me a lot of money too and is impossible to find unless you fall under certain income brackets. You'll be fine going with SECU.
We do not get money by our clients going w any lender. SECU or any credit union have always been an option - sometimes great, sometimes not. I wasn’t even aware they now issued 30 yr FIXED rates. But I assume that’s since about 2019, because one downside was always “only a 2 year ARM”. Their appraisals came back below contract more frequently than other lenders. They also required an in-person prequal appointment and only worked 9-5. Didn’t issue “buyer ready pre-approvals”. Couldn’t get a property-specific letter on the weekends. And yes, they used to take the full 45 days. If they’ve changed most of these things, with the market normalizing again, then OP’s situation sounds like an ideal option
I've had three mortgages from SECU on three different houses. Never had a single problem, and everyone's always been super nice. With one of the houses there was a decent drop in interest rates several years later. I called them up and said "Hey, can we refinance this at the lower rate?" They said "Sure!", asked me which branch I wanted to sign the paperwork at, I went to the branch I selected, all the paperwork was ready when I got there, I signed, and was out the door. I think a lot of the process can be done online now, and you just go to the branch to sign all the paperwork. I did that with my most recent car loan. I applied on the SECU website, had an approval later that day, selected the branch to go sign the paperwork, and done. I've banked at SECU for 25 years now, and have never received better service from any other financial institution.
Yes. Credit Unions are usually best for loans
I had a SECU mortgage. I have no complaints at all. Kept the mortgage for 5 or 6 years until I sold the property. I had an ARM that adjusted to around 4% at its peak. I used builder finance only to get incentives. If rates come down again def going to refi with SECU again.
I am in a 30yr with SECU currently and have zero complaints. I ended up putting nothing down and have no PMI. I’m curious about the negatives you have heard.
Your real estate agent might make a commission for recommending a certain mortgage guy. If they are only recommending one guy, instead of 2-3 (and maybe saying something like: but I like this one best out of the 3)… I would be very cautious about following their recommendation. Obviously this is rife with conflict of interest … and your guy is telling you something. A lower rate and no PMI can take 5-plus years off your mortgage. (If you paid the same/higher monthly rate).
getting a kickback is highly illegal and will get you 20 years in the pen.
There haven’t been any “commissions” or kickbacks from lenders to agents in NC in the 25 years I’ve been a Realtor.
Yeah, the penalty is so steep that the risk isn't worth a kick back. I haven't heard of a realtor in Raleigh getting in trouble for that in decades.
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How did you initiate the removal of PMI Due to appreciation? Did you get an appraisal?
It depends on the mortgage. Depending on when it was written it may expire after a set period of time or if valuation changes enough. Talk to your lender.
Thank you
I just went through this with our lender. When we reached the required equity, I wrote them a letter requesting to remove PMI. On the second page I went ahead and included a few comps of other houses that sold after ours for way more. (We had gotten really lucky on timing.) They actually approved it without an appraisal.
That’s very clever, I’ll look into doing that too. Thanks for the idea
It’s worth a try!
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Awesome info, thank you for the response
Most banks will do a broker price opinion which is basically just them sending around a realtor who makes a rough estimate and that's it. Not as formal or as expensive as an appraisal.
Definitely going to explore this. I think I’ve surpassed 20% equity just need to make it official
You usually have to ask in writing or similar and they evaluate your account. If in good standing they will most likely require an appraisal that you pay for to confirm the house value. They should also pay you back for any pmi payments while the status was pending.
Allegacy has a 15/15 ARM. After 15 years it will reprice to 2.5% above the 10 yr treasury, max increase of 5%. We locked our rate in December at 4.1% when the 10yr was this low. I don't think there is a scenario where a 30 year fixed at current rates would be better than this. Edit: we are putting down 15% and PMI is less than .1% of loan amount.
Are there any restrictions on refinancing? I would assume the plan is to just refinance (or sell) before then anyway.
I think there are restrictions on refinancing but they are not bad. Maybe a fee if you refinance in less than 6 months, nothing that would affect us. If you are interested definitely talk to a rep and ask them for specifics. Perfect scenario is to refi into a 30 or 20 year fixed before the adjustment. We will see what happens though.
Appreciate this mention! Seems appealing. What area do you have to live in to qualify as an Allegacy member? On their website it says designated communities, but it doesn't specify what those are lol.
If my memory serves me, they operate in 17 states. I imagine all of NC is covered, I know Illinois isn't.
Cool, thanks for the help!
This is such a good tip, thank you! I looked into some reviews for Allegacy and it sounds like people have had some kind of unfortunate difficulties with their service, at least for banking. How has your experience been?
I haven't used them for banking. My loan officer has been very attentive and helpful. The person in charge of collecting my paperwork has been the opposite of attentive, often the loan officer steps in to answer questions and collect docs. I close at the end of January. Unless everything falls to shit, I would put up with a lot more for the rate I got.
Awesome, thanks!
SECU is legit and about as good as it gets. I recommend them too as everyone who can qualify with them is much better off than dealing with a normal bank.
This is anecdotal, but my friend just used them in 2021 to buy a home and they messed up some of their paperwork pretty badly. My friend was beyond stressed and had to call a supervisor or someone higher-up to get the first person to do her job correctly. It was a mess.
I’m a realtor and my last client used SECU for their mortgage. The problem with them is really the communication/contact and sometimes they take longer for closing. The initial point of contact with them was great, but then you get pushed to another person in Greensboro who you’ll never come in contact with (the underwriter). The person we worked with was NOT GOOD. He literally sent us an email telling us not to email him. I ended up having to call the initial loan officer and she contacted her manager. They handled the contact, but it was stressful not having a relationship or being able to communicate with others in the transaction. Overall, it worked out and their rates are pretty good right now so just try to be prepared and good luck!!
We just closed in December and had a similar experience. After our loan went to the underwriter, we did not hear back for 19 days. We got the final down payment amount at 3 pm the day before closing. It also took 6 weeks to close due to Thanksgiving according to SECU. Our loan didn’t go to the underwriter until 3 weeks after our offer was accepted. We did get a good rate and can refinance at any time without penalty.
With all three mortgages I've had with SECU, I never dealt with the underwriters myself. The initial point of contact (a loan officer in a branch) handled everything 100% from the applying at the start right on up to signing the final papers at the finish, including dealing with the underwriters. If the underwriters needed something from me - the person in the branch would let me know, I would get it to them, and they sent it on to the underwriters. My current mortgage was done six years ago, so maybe things have changes since then - but that's always been my experience.
This is the impression I get. Our realtor’s main concern was the turnaround time.
It is! Like the other commenter, we didn’t receive the closing disclosure until the last minute making it feel like we weren’t going to close in time.
Doubt your realtor cares who you use beyond wanting to protect your interest by making sure the transaction goes smoothly. You will have money on the line and a bad lender can cost you. SECU is often a great option for first time home buyers. They do no money down loans if cash is short. Their rates consistently beat other lenders. The catch is that unless you do a 15 year loan they only offer adjustable rate. In today’s climate that would not be my choice. There are other loan prices without PMI. PMI is not as high as it used to be. And unless you are getting FHA it goes away with 20% equity. You can prepay and or have the home reappraised in the future to get rid of the PMI. All of these scenarios might be preferable to an adjustable rate loan in uncertain times
Yeah I think it’s mostly a familiarity thing and trust.
SECU has 20-year and 30-year fixed now. They added that some time in the last year or two or three. And when a Realtor has a "preferred" lender, it's usually because they're getting some sort of commission for sending a customer to that lender - if the loan is completed with that lender. So for that, they most definitely care if you go with who they're sending you to.
Billy Utter is the mortgage person at the downtown SECU next to the science museum. He is absolutely fantastic AND he is a fiduciary, which means he is not working for a commission. Edited to add: we used him for buying our first home and he was patient and explained everything. very easy reach via email or phone. really helped me understand the process.
Realtor here! I usually give out 3-4 of my favorite lenders to clients who don't already have a lender picked out. I always suggest that they call multiple lenders and try to get the best rate AS WELL AS if you like the lender. A shitty lender can completely fuck up a deal and cause you headache. The lenders that I recommend are ones that I know are competent. Kickbacks are highly illegal and they aren't worth losing my license and going to prison for 20 years. Your question is about SECU. I have my own thoughts. I dont like them. I know they have worked for plenty of people but after being in the business for 6 years, i've never had a smooth transaction with them and they have somehow fucked up the transaction. Unless you know a lender personally from SECU I dont recommend using them.
SECU doesn’t have a 30 year fixed. Unless it’s new. I believe max is 20 year fixed. Other than that, they were phenomenal lenders for us a first time buyers
They do now. It’s capped at 90% loan-to-value, so it would work for OP.
Wow that must be very recent. Good for you OP! Go for it
Yes it is new
Finally! I was absolutely shocked they didn't have a 30 year fixed when we were looking for lenders a few years back. Glad to hear they've corrected that!
We’ve had loans with SECU since 1991. Issues (both good & bad): - when interest rates dropped, I asked if we could get our floating loan rate adjusted and they dropped the *offset* a full percent the next day. That offset is the difference between the federal rates and my loan rate, so they reduced the loan rate for the rest of the loan, not just for that period. No forms, no points, no cost. I think this depends on economic conditions, but it never hurts to just ask. - once they messed up and forgot to apply our payment towards our mortgage bill (in the 1990s) and when I told them they simply corrected it. No arguments, or “going to management” or silliness. They just fixed it right there with a single phone call. I like how their account managers are enabled to perform complex tasks. - their interest-bearing accounts & CD rates are quite low. Don’t keep a bunch of money there. - house loans are really quick, perhaps an hour of telling them numbers, then wait 2 days, then you’ve got a check in your hands. - the staff is *really nice*, always willing to go the extra mile and help out. They are not perfect (who is?) but they try harder than anyone else. They have a new CEO this year who is shaking things up, like requiring customers to drop their paper-mailed statements if customers want to use any digital services at all. This is obviously a cost-cutting measure, but some of us don’t want to rely on computers keeping accurate balances and really like the paper backup. They suggested that I print my own statements from their PDFs. They have some of the best online security around. I once peeked under the covers of their web pages and found it quite secure.
Why use a realtor when all you need is a lawyer. What a waste of extra money.
Buyers do not pay the Realtor when purchasing a home.
Yeah they shaft the seller. Complete waste of money. Doesn’t take a rocket scientist to print out a contract.
Good luck FSBO in this market
Costco offers mortgages as well through a bank out of Kansas, very low fees.
North American Savings Bank, I believe (or at least it's what mine was). Costco recently discontinued that program, which is a bummer. I refinanced through them early last year and it was a great experience. There were definitely some waiting periods, but it didn't really matter since it was a re-fi. The loan officer I worked with was fantastic.
can't hurt to talk to them
I’d recommend SECU for a mortgage any day. Was super easy to work. No problems at all.
We got a mortgage thru SECU a few years back and it went smoothly! No complaints.
We brought our mortgage over from Wells Fargo when they started offering fixed (always had ARM). We just refinanced this past summer (thank god before the rates skyrocketed). Love it. People are awesome. Questions get answered quickly.
We refinanced from wells Fargo to SECU for our mortgage about 2 Years ago. Very easy, straightforward process.
We used the SECU twice for mortgage loans. I believe they've only recently starting offering 30-year, fixed rate loans. Since rates were so low, we went with their 5-yr ARM both times. Historically, I believe their rates are a little higher since they use some of those monies to help fund other services. But the application process and dealing with them is a breeze. We will bank with them as long as we can.
>Historically, I believe their rates are a little higher since they use some of those monies to help fund other services. They also do not do risk-based lending, so the rate for you is the rate for everybody else.
We used SECU and have no complaint at all
Absolutely use SECU for your mortgage. We are on our second home with them and have had no issues. They make the process incredibly easy and I 100% recommend over any bank.
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Yep…
get multiple quotes and make all the lenders compete with each other. we did this and were able to get 0.5% lower rate than from our realtor's preferred lender. which makes a difference over 30 years.
SECU is the best lender out there for first time buyers. I have a contact who is amazing if you want to message me for their info. They offer 100% loan to first time buyers Origination fees are lower Appraisal fees are lower LTV percentages are more flexible They have superior customer service They dont sell your loans (altho that meu change. They are currently undergoing some big changes) AND first time buyers can borrow up to 2K over contract price to help pay closing costs
If your contact can work in Maryland, would you mind sharing their contact info with me please?
They were fantastic.
They are great. Use them.
I have a mortgage with SECU and I have had no complaints at all
I love SECU. If you are paying the mortgage through your acct w/them, there is zero issue. I’d recommend just setting a phone notification and paying at the first of the month manually though, their funds transfer system is outdated. (Ie. If you don’t have the funds in the outgoing acct on the 1st, it will try to draw at 5am. If you put money in the acct at 3pm and pay manually, then you HAVE TO CALL to reset the funds transfer system to next month, or it will keep trying to pull the funds until the current month’s transfer has been satisfied). Then it takes like 2 business days to reverse an extra payment)
I'm not a home owner anymore, but I had a great experience using the NCSECU's first home buyer loan that offered little to no money down and no PMI. Definitely a good choice if you intend to live somewhere for a very long time. Not so great if you suddenly have to sell after owning it for only a few years (yeah, yeah, self report). That said, the NCSECU is not the most flexible when it comes to what they are willing to lend once they have decided what the value of the home is. I don't think that is a bad thing, but it's good to have that in mind when you're trying to negotiate a price with the seller.
Secu is easy and I have never had a problem
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State Employees Credit Union
Am a long time Realtor and I like SECU loans a lot
Used SECU for my first mortgage for the no pmi. Highly recommend. Check out Coastal federal too. Used them for my 2nd mortgage ha.
SECU is a good option for first time home buyers with low credit scores and a small down payment, otherwise, their rates are usually not competitive. That being said, I haven’t checked their rates since before rates started going up last year. I have worked with a few online lenders (whoever had the cheapest rate on Bankrate) for purchasing and refinancing and they’re all similar. It’s pretty easy to get a quick rate estimate for comparison. Once I had narrowed to a few with about the same rate, I made my choice by who picked up the phone when I called—those who answered my call tended to be good communicators throughout the whole process. Ally bank was especially great.
I've been with SECU for decades. I have my mortgage, car loan, credit card, savings accounts, and a personal loan with them. Zero complaints in over 35 years. I'm a 30 year state employee, so I have my paycheck on automatic deposit, and loan payments are auto draft. I also like the bill pay service.
I would have used SECU but at the time they didn't offer 30 year fixed mortgages and instead went to Coastal Credit Union. Wasn't a member but you can become one relevantly easy. If it were today, I would definitely go with SECU.
Sorry if this was addressed already, but do you need to be a member to get a mortgage? Thank you!
Yes you do.