There are two situations in which it is a good idea to make this type of credit. The first one is obvious. If you are an investor and you want to use this loan to increase your portfolio. The second one is a little more complicated. If you want to buy your own house then it is a good idea only if you are prepared for the worst-case scenario.

What that means? Well, ask yourself, if you lose your job do you have enough money saved to repay the monthly installments? If you have between three to six months your salary saved then you are safe to take the step because in that period you all have money for all your needs including the installments and you can focus on creating a new income stream. Otherwise, it will be better to make some saving beforehand, as a precaution for any unfortunate event that may happen.

When It Is Good to Use Banks in Portland Oregon to Buy a House?

Yes, there is a situation in which there is good to make the loan at the  banks in Portland Oregon  even though the interest rate is slightly higher than the one offered by credit unions. This is possible because most credit unions do not have a very long reach and you may not be able to pay the instalments directly to it.

Most of the time, investors do not live in the place they buy. They lease it and use the rent to pay the installments. To do this they do not need to be present. Someone else is hired to take care of the propriety in their place.

In this situation, an investor will have to pay extra for a transfer from a bank to the union and this will cause the cost to be higher. Banks, on the other hand, have a very big reach and you will be able to pay directly to the bank without the need of a bank to bank transfer.

Another problem that will stop an investor from using the services of a credit union to purchase the house is the membership requirements that a credit union has. It will be very hard for him to find a union that will be able to accept him as a member. But if you are not an investor and you plan to live in the house, then below you will find what benefits can a credit union offers to you for this type of credit.

Benefits Offered by and Oregon Credit Union.

There are two main benefits offered by an  Oregon credit union  in comparison with a bank:

- Lower interest rates. Most of the time a credit union has much lower rates than a bank. This happens because the union is a non-profit organization and it does not focus on maximizing profits as banks do. For this reason, a union is able to redirect the potential profits back to their members through lower interest rates at loans and higher interest rates at saving accounts. As a conclusion, the interest rate asked by a credit union can be as low as 3.375%.

- High-quality customer service. Because the clients of a credit union are also its members, they are treated differently from how banks would have treated them. A credit union will offer more details, will help you understand everything about the loan and will always be more understanding than a bank.

Should You Stop Renting and Buy a House?

You can find the answer to this question very easily. Go to the site of a credit union and there you will find a calculator. Use it to find the monthly installment that you would have to pay. After you are done with the calculus, compare it with the rent that you are paying now. Which one is higher? How big is the difference? If it would cost you more to pay the installments, then would you be able to handle the extra amount?

All you have to do is to answer these questions. They will be able to confirm that you made a good decision to continue renting or if you are able to handle the installments from buying a house. In the end, it is your decision what to do, but keep in mind that all the rent that you pay does not bring you any equity. On the other hand, installments bring you closer to owning the house.