Charter Oak FCU Named Mortgage Leader
A second credit union has been formally recognized as a mortgage leader in its community.
The 67,000-member, $702 million Charter Oak Federal Credit Union has been named eastern Connecticut's top mortgage lender, according to The Warren Group, a publishing firm that specializes in tracking and reporting New England financial and real estate data.
Dolan said the CU limits the loans to no more than $250,000 and set a loan to value or ratio of no more than 80% for the product. Loans of more than $250,000, Dolan said, require a more thorough appraisal and thus cost more than the $400.
The target market for these loans are baby boomer members who want to pay off their current mortgages as soon as possible to prepare for retirement. According to the CU's website, Charter Oak offers the accelerator loans at an annual percentage rate of just over 3%, and Dolan said the CU was surprised at how many people found the loans appealing even in a sagging economy.