By Lauren Griffith
REV Federal Credit Union has been proudly serving its members since 1955, with fifteen locations across the Carolinas. Eleven of their branches are right here in the Charleston Metro Region, including locations in Summerville, Goose Creek, Moncks Corner, Mount Pleasant, West Ashley, James Island, Downtown Charleston, North Charleston, and Walterboro. You can also find them throughout the Rockingham and Wilmington portions of North Carolina. REV is passionate about the communities it serves and actively works with area businesses, organizations, and associations to guide them through their financial journeys. In fact, it’s hard to go anywhere in Charleston without seeing the REV brand attached to a local event. That’s just one of the many differentiators that help them stay a cut above their competitors.
In addition to the work that REV does throughout the community, several other factors set them apart from competitors; especially their mortgage products. What is the difference between a credit union and a bank in terms of a mortgage, you might ask? Great question! Before deciding on where to apply for your mortgage, you should consider the following benefits.
REV is headquartered in Charleston, which means all the decision making happens locally. Getting a mortgage is a big deal. You’re sure to have many questions along the way, and REV’s personalized approach will guide you through the process to ensure you’ve got peace of mind every step of the way. Most importantly, credit unions generally offer lower rates. That’s because Banks are focused on bottom line profits to satisfy shareholders, while credit unions are not-for-profit member-owned financial cooperatives. Plus, becoming a member of REV also means that you’re helping support local businesses.
Torn between renting or purchasing? REV encourages you to consider a few things before making your decision. The biggest benefit in purchasing a home is building net worth, and building equity as you pay off your mortgage.
For example, when purchasing a home for $200,000, you would take out a loan for $200,000, and sell the property after 5 years; the balance on your loan would approximately be $178,000, and the value of the home at an appreciation rate of 3% each year would be $231,000. After 5 years you would have $53,000 worth of equity which now becomes cash to you at closing (not counting any fees you would incur to sell the home). Homeowners also receive several tax benefits, a fixed monthly payment, and can renovate their property however they’d like.
As a first-time homebuyer, there are many questions and concerns that may arise early in the process of establishing finances for this large purchase. REV wants to help. Their focus is to help borrowers achieve their dream of homeownership, and they’ve developed special loan programs that allow borrowers to put little to no money down.
There are also different types of mortgages for buyers to choose from if they qualify; such as VA loans, USDA loans, FHA loans (popular among first-time homebuyers), and conventional loans. When qualifying for a mortgage, all lenders will look at your debt-to-income ratio. It essentially helps them determine how much house you can afford. When it comes to 15-year mortgages vs. 30-years, the biggest pro of a 15-year mortgage is lower rates, less interest over the life of the loan, and the chance to build equity in your home at a faster pace. A 30-year mortgage also offers advantages, since the payment is substantially lower than a 15-year mortgage you have a lower payment to fall back on.
Working with an experienced, knowledgeable mortgage loan originator is key to helping you understand and achieve home buying success. REV cares about the financial well-being of its members and wants to simplify the concept as much as possible to help individuals understand the previous financial concepts in depth, and guide them through the mortgage process by establishing a solid financial plan.
To learn more, or to find a REV Federal Credit Union location near you, visit REVfcu.com or call 843.832.2600.