A Michigan credit union is seeking to attract new home loan borrowers by offering 30-year fixed-rate mortgages at a 4.99% rate.
The Detroit Free Press reports Michigan Legacy Credit Union — which has branches in Wyandotte, Warren, Pontiac, Highland Township and Flat Rock — is offering this lower rate in an attempt to boost its lending activity in the wake of flattening loan demand.
“It makes sense for us. It makes sense for the consumer and it’s a win-win for everybody,” said President and CEO Carma Peters.
Michigan Legacy has more than $218 million in assets and is designated as a “low-income credit union,” with more than half of its members falling under specific income guidelines.
The 4.99% interest rate applied for new, fixed 30-year home mortgages and not adjustable-rate mortgages or home equity loans. The mortgage also has 1 point — or a fee of 1% upfront of the total amount of the loan. Peters added the 4.99% loan can also be used for refinancing a mortgage if that mortgage is not already at Michigan Legacy Credit Union.
