[OC] Die hohen Kosten der Großbanken: Ich habe die täglichen Hypothekenzinsen von mehr als 120 Kreditgenossenschaften im Vergleich zu den vier großen Banken nachverfolgt, um zu zeigen, dass Hausbesitzer über 50.000 US-Dollar kosten, wenn sie nicht in der Nähe einkaufen
Von mhashemi
8 Kommentare
I’ve only banked with a credit union while my SO had a big bank for a while. I was shocked at the basic things that he couldn’t do, like live mobile money management. Doesn’t much surprise me that mortgage costs are even worse.
What kind of graph is this, bird formation style?
I’d love to see the data, is it public?
went through Bank of America last December and got a 5.25% rate somehow
I’ve found credit unions are better when you’re borrowing their money and banks are better when they’re borrowing your money, but yeah: always shop around.
I am nearly 50 and have never in my life heard a practical reason that a bank is better than a CU.
*laughs in 3.5% fixed rate with no mortgage insurance* Damn, 2013 really was the last decent year for purchasing a home and getting a reasonable mortgage.
Fair enough, looking at historical average mortgage interest rates is crazy, in 2020 the average dipped below 3%.
Although the interest rates more than doubled over the past 5 years it is still way below what people used to pay (for 30 year mortgages).
[OC]
**Methodology**: Over the last couple weeks, I collected daily mortgage rates from 120+ credit union websites across the US and compared them against the big four banks (Wells Fargo, Chase, US Bank, Bank of America). The national benchmark comes from FRED (google St. Louis Fed’s weekly 30-year fixed rate survey).
The y-axis compares each rate to the average credit union APR, which is currently 30+ basis points cheaper than the national average. Went with average CU rate instead of median to stay consistent with the national benchmark. (At the time of writing, the median CU rate is 5.96%, so results are similar.) I calculated the total interest paid to show the real dollar impact ($50k+), despite the loan being virtually identical. Everything here assumes a conventional 30-year fixed mortgage with $500k loan, 20% down, 700+ credit score, and primary residence. Refi, other time frames, variants (FHA/VA/etc.) are also explorable on the FinFam blog (finfam dot app slash blog)
**Why**: I was inspired by the recent episode of Bloomberg Odd Lots with Itamar Dreschsler that explained why credit card rates are so high. TL;DR The higher rates are largely to pay for the advertising/marketing. As explained by the Bits About Money newsletter cheaper loans aren’t worse; the mortgages are all bought by the government („Mortgages are a manufactured product“). We may naturally feel a privilege when a bank flatters you with what feels like an exclusive offer or a reward for loyalty. But in reality, credit Unions are non-profits, and bigger lenders have marketing departments that smaller institutions don’t have.
I go into this more on the FinFam blog, but there are real reasons to use a bigger lender, and not all credit unions are necessarily cheaper. I just want to enable folks to shop around and go in with eyes open.
**Tools**: I wanted something that’s quick to update, so I built this with Python (matplotlib/seaborn/pandas). The dashboard is Svelte. Font is Noto Sans.
NB: I posted an earlier comment with links but it’s hidden, so posting this one for now.