Mortgage

Navy Federal Mortgage Assessment for 2020

overview

Navy Federal Credit Union is a full service mortgage lender offering a wide range of mortgage solutions to members of the armed forces, civilians in the Department of Defense, veterans and their eligible families.

Navy Federal was founded in 1933 and is headquartered in Vienna, Virginia. The company has over 300 offices and more than 9 million members.

Navy Federal is ranked a “Top 5 Lender” for VA loans, so its loan officers have extensive experience supporting military families.

They strive to help each borrower find the right mortgage for their situation.

Navy Federal Mortgage Rates

The following table compares the average mortgage rates and fees from multiple lenders in 2019.

Compared to the other major lenders, the Navy Federal Credit Union offered its clients (2019) slightly lower interest rates on a 30 year VA loan.

These borrowers also paid significantly less borrowing fees.

Average 30-year VA mortgage rate from major lenders

USAA
Wells Fargo
Accelerate Loans
Average 30 year VA loan rate, 2019

3.56%
3.84%
3.88%
3.68%

Monthly P&I payment *

$ 1,131
$ 1,441
$ 1,447
$ 1,419

Median VA Loan Costs, 2019

USD 5,884
$ 5,613
$ 5,293
$ 6,251

Median Origination Charges, 2019

$ 0
$ 949
$ 1,199
$ 2,805

Note that average mortgage rates fluctuate from year to year based on market conditions. Therefore, the interest rate you are getting today is likely to be higher or lower than what is stated.

Average tariff and fee data comes from public tariff and fee records required by the Home Mortgage Disclosure Act (HMDA).

* Monthly principal and interest payment based on a home price of $ 250,000, down 0%, assuming an average 30 year VA rate for each business for 2019. Your own rate and monthly payment will vary.

Check your new plan (October 7, 2020)

Navy Federal Mortgage Review for 2020

The Navy Federal Credit Union is not just committed to helping its members find the right mortgage. The lender also strives to help the borrowers save money.

Down payments and closing costs are two of the biggest barriers to home ownership, but Navy Federal can reduce those financial burdens.

Zero Down Home Loans

It's noteworthy that Navy Federal offers other zero-down mortgage options in addition to the federal government-backed VA loan.

The Homebuyers Choice Loan is a zero-down mortgage for military borrowers who have already exhausted their VA buying advantage.

The interest rates are about 1% higher than the standard VA loan, and the credit union charges discount points of half a percent. However, this is a great deal for veterans who are no longer eligible for a VA loan.

Note that this loan does not require Personal Mortgage Insurance (PMI). This significantly lowers the mortgage payment when compared to an FHA or a traditional loan.

There are even refinancing and jumbo loan options. Few other lenders go as far as ensuring the availability of home finance for veterans.

The Navy Federal Credit Union also has a "Rate Match Guarantee" which can be helpful for borrowers who shop.

If another lender offers a lower rate on your mortgage, Navy Federal will match that rate or give you $ 1,000.

No minimum score

It's also noteworthy that Navy Federal does not impose a minimum credit rating for approving mortgages.

According to a representative of the credit union:

“Navy Federal is a relationship based lender, which means we work closely with our members to find the right mortgage for their needs. We do our best to do "real underwriting" and a member's approval is determined not just by a number, but by several factors. "

Of course, if your score is particularly low or you have red marks on your credit report, qualifying for a mortgage can still be difficult.

But Navy Federal could be helpful for borrowers with marginal credit or poor creditworthiness.

To apply for a Navy Federal mortgage, you must become a member of the credit union before you are eligible for a loan mortgage.

Membership is open to:

Active Service Members Retirees and Veterans of the Armed Forces DoD Civilians Obliged Spouses and Family Members of Service Members

Although the credit union offers a variety of mortgage solutions, it is clearly tailored to meet military needs.

For example, it does not offer FHA home loans or USDA home loans, which are popular low down payment mortgages for buyers who do not qualify for a VA loan.

Processing can be a little slower

And according to some customer complaints, mortgage approvals can be slow. So don't expect a particularly fast process.

Navy Federal acknowledges this weakness on its website and states, "Due to a high volume of applications, the response may take longer than normal."

However, this is true for many lenders at the time of writing this assessment as low mortgage rates have resulted in high application volumes.

Working with the Navy Federal Credit Union

Once you are a member of the credit union, you can apply for a mortgage in person or online.

When you apply online, Navy Federal makes it easy and convenient to submit documents through a portal.

Some of the information you will need to apply for a mortgage includes:

Social Security Number and Date of Birth Navy Federal Credit Union Account Number Current stubsW2s pay slips and complete tax returns from the past two years Bank statements and information about other assets

HomeSquad is the online tool that allows you to keep track of your credit status either from your mobile device or from your computer.

Instead of visiting a credit counselor in person, simply upload your payroll, tax returns, and other necessary documents for review.

Instead of printing out several bank statements, you can link your bank accounts to the online system. From here, underwriting can review your assets.

Depending on your location and the processing company, an electronic transaction may also be possible.

Navy Federal Customer Service Reviews

According to the U.S. Primary Mortgage Satisfaction Study by J.D. Power in 2019, the Navy Federal Credit Union ranks high on overall borrower satisfaction – a score of 882 on a 1,000 point scale.

That puts it just above Quicken, the 10-year winner for non-military-specific mortgage lenders.

Companies
Mortgage origins 2019
CFPB complaints 2019
Complaints per 1,000 mortgages
2019 JD Power Rating7

196,000
95
0.48
882/1000

USAA

115.206
49
0.43
900/1000

Accelerate Loans

774,900
187
0.24
880/1000

Wells Fargo

1,026,800
342
0.33
837/1000

The credit union has also filed a small number of customer complaints with the Consumer Financial Protection Bureau for 2019.

Unfortunately, some customer complaints on Navy Federal's Trustpilot site resulted in slow response times when applying for original mortgage and refinancing requests.

Mortgage loan products at Navy Federal

Navy Federal Credit Union home loan options include:

VA loan – Get a 10-30 year VA loan with no money loss. The seller can contribute up to 4 percent of your closing costsConventional Fixed Rate Loan – Apply for a conventional loan with a term of 15 to 30 years and a minimum down payment of 5 percentMilitary choice – An ideal solution when you have exhausted your VA loan performance. Choose a term of 16 to 30 years with no loss of money. The seller can contribute up to 6 percent of your closing costsHome buyers choice – Get a 16 to 30 year term with no loss of money and no private mortgage insurance. The seller can contribute up to 6 percent of your closing costsAdjustable rate Mortgage – Are you planning to move within the next five years? Enjoy a low initial fixed rate and no mortgage insurance. The down payments range from 0 to 10 percent. Home Equity Solutions – The Navy Federal Credit Union also has home equity lines of credit and home equity loans. However, new applications for both programs have been temporarily suspended due to COVID-19

This list focuses heavily on military homebuyers.

However, due to Navy Federal membership requirements, the restrictions on these loan types are not an issue for most applicants.

Navy Federal mortgage refinancing options include:

Refinancing your home loan can reduce the mortgage rate and monthly payment, as well as shortening the life of your loan. You can even borrow cash from your equity.

The refinancing terms are between 10 and 30 years. Depending on the type of loan, you may be eligible with a credit to value ratio of up to 95 or 100 percent.

Where can I get a mortgage from the Navy Federal Credit Union?

Unlike some credit unions, which have branches in only a few states, the Navy Federal Credit Union has branches and ATMs both domestically and internationally.

The credit union currently operates 341 branches around the world, including 26 international locations and 75 military bases. They also have a network of more than 30,000 toll free ATMs.

Is Navy Federal the Best Mortgage Lender for Me?

If you're eligible for membership and looking for a cash-free mortgage, Navy Federal can cut your home buying expenses.

The lender offers competitive interest rates, zero down loans, no personal mortgage insurance, and an interest rate guarantee.

Just because Navy Federal is best for some military real estate buyers doesn't mean it is best for everyone.

Always shop and get additional price offers from at least three lenders.

Check your new plan (October 7, 2020)

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