North Carolina State Employee Credit Union Mortgage Review 2021

NC State Employees’ Credit Union at a glance

If you are eligible for membership, SECU offers some great benefits, especially no-down payment for first-time homebuyers, as well as help with closing costs. SECU does not offer government guaranteed loans, although it does offer conventional fixed rate mortgages with a variety of terms and a few specialist loan options. It is easy to view mortgage interest rate examples and fee details on its website.

Here’s a breakdown of NC SECU’s overall rating:

  • Variety of Loan Types: 5 out of 5 stars

  • Variety of Loan Products: 3 out of 5 stars

  • Online convenience: 5 out of 5 stars

  • Prices and fees: 3.5 out of 5 stars

  • Transparency rate: 4 out of 5 stars

NC SECU Mortgage Types and Products

The North Carolina State Employees’ Credit Union, or SECU, was among North Carolina’s top five mortgage lenders by loan volume in 2020, the latest data available. SECU, whose membership consists primarily of public and public school employees and their families, has more than $ 45 billion in assets and more than 270 branches.

SECU’s mortgage lineup is pretty strong, but it does come with a few quirks. The real estate loans offered include conventional fixed rate mortgages of 10, 15, 20 or 30 years; 5/5 arms; construction ready; historic preservation mortgages and prefabricated house mortgages.

SECU offers jumbo loans, but does not call them that on their website. This is because the SECU does not have separate underwriting standards for loans exceeding the county limit of the Federal Housing Finance Agency, as most lenders do. Individual members can get a home loan of up to $ 1.5 million.

Borrowers with a low down payment will appreciate this: SECU does not require private mortgage insurance on conventional loans with down payments of less than 20%.

SECU offers a variable rate mortgage for first-time home buyers of up to $ 400,000 with no down payment required. Borrowers can also benefit from a maximum of $ 2,000 to be applied towards closing costs. A separate grant program, offered in association with the Federal Home Loan Bank of Atlanta (FHLBA), offers grants of up to $ 7,500 to help cover closing costs and the down payment. The aid is a second mortgage that does not have to be repaid, subject to the borrower’s eligibility.

The lender also offers a Home equity line of credit, or HELOC. These second mortgages are a way for homeowners to access equity in an existing home without refinancing or selling their home. Funds obtained with a second mortgage can be used for expenses such as home renovations, education costs, or debt consolidation.

HELOC from SECU can be used for primary residences, second homes and rental properties. Funds can be withdrawn multiple times over a 15-year period, and the lender states that they do not charge any application, credit report, or erection fees. SECU offers a special repayment option for borrowers who work as educators, allowing them to skip HELOC payments during the summer months when they may have less disposable income.

NC SECU Mortgage Online Convenience

Like many credit unions, the SECU website is not flashy, but most of the online amenities like downloading documents, the ability to sign documents electronically, and automated loan tracking, are available.

SECU also offers 24/7 member service through a free helpline. It also has a large number of branches, with over 270 across North Carolina alone.

NC SECU mortgage rates and fees

One of the most important considerations when choosing a mortgage lender is understanding the cost of the loan. In order to give consumers a general idea of ​​what a lender might charge, NerdWallet rates lenders on two factors regarding mortgage fees and rates:

  • A lender’s average setup fee compared to the median of all lenders filing under the Home Mortgage Disclosure Act. NC State Employees’ Credit Union earns 3 out of 5 stars on this factor.

  • The mortgage rates offered by a lender compared to the best available on comparable loans. NC SECU scores 4 out of 5 stars for this factor.

On its website, NC SECU says it charges a flat-rate origination fee of 1% of the total loan amount on purchase mortgages, up to $ 2,500, and an additional 0.5% fee for mortgage loans. refinancing transactions. It claims not to charge any processing or credit file fees.

Borrowers should consider the balance between lender fees and mortgage rates. While it may not always be the case, paying an upfront fee can lower the interest rate on your mortgage. Some lenders will charge a higher upfront fee to lower their advertised interest rate and make it more attractive. Some lenders just charge a higher upfront fee.

You can decide to buy points of call – fees paid with your closing costs – to reduce your mortgage rate.

Deciding if you want to pay a higher upfront fee is a matter of considering how long you plan to live in your home and how much money you should ask for. closing costs when you sign the loan documents.

Transparency of NC SECU mortgage rates

SECU does a good job of providing interest rates. Each mortgage product page not only explains how the loan works, but also offers current interest rates for different loan terms.

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