Many people today are turning to credit unions in Killeen TX when it comes to obtaining secured loans for housing, automobiles, and other needs. This shift towards credit unions from the conventional ways of banking can be best explained by the many benefits that they offer. Read on to know how joining a credit union can prove to be beneficial for you.

• Firstly, credit unions are out there in the market not to make profit, but serve their customers. They offer reliable services to customers at affordable fees. Banks on the other hand are known for charging considerably high charges for providing services to customers. Hence, many people today prefer to become a member of a credit union.
• Another advantage of joining a credit union is that it will provide you higher rates of return on your savings account. In addition. If you go in for a secured loan in Killeen through a credit union, you are liable to pay lower rates of interest as compared to a bank. Both these factors make it a win-win situation for the customer to readily become a member of a credit union. Credit unions pass on their savings into their entire product line, leading to lower interest rates.
• While banks furnish a minimum balance requirement when it comes to ensuring the continuity of an account, it is not the case with a credit union. There are no big numbers on the amount of money to be kept for running the account. You can easily operate accounts with negligible balance.
• ATM accessibility is another major benefit of joining a credit union. Credit unions in and around Central Texas have their own shared ATMs and branches, which means that you can get cash any time and any where you need. This can be an impediment when it comes to banks which have an ATM facility only next to the place where their branch is located.
• Credit unions also offer many free services in addition to the conventional loan offerings that they provide. For instance, many credit unions conduct free seminars based on various financial topics for their members. This is just one instance. There are many other free services offered by credit unions for which a bank will charge money. Hence, people see it to be more profitable to become a member of a credit union.

So join a credit union today, and enjoy the above mentioned benefits and advantages as you go about managing and dealing with money.

• Annual Percentage Rate (APR): It refers to the variable or fixed interest rate at which the financier is ready to lend the loan for a certain period of time. Borrowing a loan at a low APR does not always mean a cheap loan, particularly if it is a long term loan. Paying higher number of installments at a low APR ultimately leads to reimbursing more interest.
• Comparison Rate: This includes the upfront loan fees as well as the proposed interest rate. Comparison rate will help you in assessing the true cost of the home loan.
• Fixed Rate: This allows you to borrow the loan at a definite rate of interest with fixed monthly payments for a specified period of time.
• Loan To Value Ratio (LVR): It refers to the size of your home loan in proportion to the actual value of the property to be purchased. For instance, if you borrow $200,000 to finance a home worth $400,000, the loan will have an LVR of 50% ($200,000 is 80% of $400,000).
• Variable Rate: It keeps on varying according to the changes in official rates of interest.
• Down Payment: When you borrow a home loan, the lender will require you to contribute certain percentage of your own money to buy the house. This initial amount is known as down payment. 
• Refinance: This refers to procuring a new mortgage loan on an already owned home. This is usually done to switch current loans on the property. 
• Loan Term: It is the time period before the maturity of your home loan and is usually indicated in months, usually 24 to 84 months. It helps the borrower have an idea about when he is expected to pay off the loan.