Reply #12: With the internet, you can join a CU anywhere. [View All]

I joined Pentagon Federal, in DC, and got tremendous rates on car loans and mortgages. Go to www.bankrate.com, where you can find the lowest rates anywhere in the country for any type of loan. Never get a loan without it. Credit unions, also, tend to have lower fees, which can be significant.

As for mortgage salespeople, my future ex-spouse is in the industry, though she is with a bank. There are a number of creative programs out there that are hard to understand and explain, but will save you a ton of money.

For instance, you mentioned PMI. My spouse got her start in a company that specialized in second mortgage PMI loans. The plan was simple enough--when you owe more than 80% of the value of your home, you are required to pay PMI, which is an insurance policy that you get nothing out of (as you probably know). In addition, some companies will not cancel the PMI even after you have more than 20% i equity. Her company would make second mortgage loans for the difference between the downpayment on the house, and the 20% of the value, so the buyer would not have to pay PMI. Instead, the buyer would pay the same amount of money that the PMI would cost, but they'd pay it to the mortgage on the house. Instead of throwing the money away, it would go to increase equity and to paying off the house more quickly. In return, the bank would charge a higher interest rate than the original loan (second mortgages are always higher).

It was a great deal with no downside.

So, sometimes salespeople who seem pushy know what they are talking about. Listen, then judge. A few minutes of time can save you tens of thousands of dollars. If you listen, but the plan is bad, just say no. Or, if you catch them hiding fees or misrepresenting the product or trying to close before they've explained it, walk away and don't look back, and take anything you signed with you. Those are the bad ones.