Connexus Credit Union Review 2022: Members-Only Competitive Pricing With a Limited Mortgage Menu

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Connexus Credit Union: 2022 Mortgage Lender Review
Connexus Credit Union: 2022 Mortgage Lender Review
Editor’s Score: (4.3/5)
Connexus Credit Union: 2022 Mortgage Lender Review
Editor’s Score: (4.3/5)
  • Minimum Credit Score:
    640
  • Minimum Down Payment:
    3% to 5%
  • Can Apply Online:
    Yes
  • Operates In:
    47 States (for mortgages)

NextAdvisor’s Take

Pros
  • Mortgages available in 47 states
  • Discount on closing costs
  • Offers conventional and refinance mortgages with various loan terms
  • Offers home equity products
Cons
  • Must become a Connexus member before taking out a mortgage
  • Limited mortgage menu and no government loans
The Bottom Line

Across 47 states, Connexus offers conventional purchase loans, two types of refinance loans, home equity loans, and HELOCs. Because it’s a credit union, it may offer lower rates than banks and online lenders — but it’s only a good fit if you’re looking for a conventional mortgage product and don’t mind joining as a member. 

Editorial Independence

As with all of our mortgage lender reviews, our analysis is not influenced by any partnerships or advertising relationships. For more information about our scoring methodology, click here.

Connexus Credit Union Full Review 

Connexus Credit Union is a full-service financial institution that serves 390,000 members and offers mortgages in 47 states. 

Connexus is a credit union, which is a nonprofit organization that’s owned by its members. These financial institutions sometimes offer better interest rates and stronger customer service compared to banks. But there’s a caveat: You’ll need to meet the company’s limited eligibility requirements to join as a member before taking out a mortgage. Connexus advertises that it will extend membership to those that make a one-time $5 donation. 

Connexus offers conventional purchase loans and refinance loans, and you can get a rate quote online without a hard credit pull. If you’re in the market for a basic mortgage product and don’t mind becoming a member, here’s what to know about Connexus. 

Connexus Credit Union: Mortgage Loan Types and Products

Connexus offers a basic lineup of mortgage products that include:

When shopping for a mortgage, borrowers can choose the type of interest rate they receive: fixed or adjustable. With a fixed-rate mortgage, the rate never changes and the principal-and-interest payments are predictable for the life of the loan. These are available at Connexus for terms ranging from 15 to 30 years. 

Adjustable-rate mortgages, or ARMs, come with a fixed rate only for a certain amount of time. For instance, on a 5/3 ARM, the interest rate is fixed for the first five years. After that period ends, the rate may go up or down every three years based on market conditions for the remaining loan term. Connexus offers terms of 3/3, 5/3, and 7/3.

You won’t find government-backed mortgages at Connexus — including VA loans, USDA loans, and FHA loans — along with jumbo mortgages, construction loans, and renovation loans. 

However, Connexus does offer home equity products, which allow homeowners to borrow money using their home equity as collateral. 

Connexus Credit Union: Mortgage Transparency

Connexus Credit Union’s website is easy to use, and you can get a rate quote without providing personal information or agreeing to a hard credit pull. This is important because you’ll be able to see if the credit union’s a good fit without it affecting your credit. Once you enter a few details in the rate-quote tool, Connexus estimates your interest rate and closing costs for several loan options. You can also see how the payment changes when you add discount points, change the interest rate, or adjust the loan term.

Hit the “Apply Now” button, and you can start an online application. Another option is applying in person at a branch. Connexus is headquartered in Wausau, Wisconsin, and has branches in four states. It’s also part of the CO-OP Shared Branch network, so members can make certain transactions at 6,000 shared branches across the U.S. But mortgage applications might be limited to Connexus-specific locations.

After applying for a mortgage, you’ll get access to an online portal where you can upload documents, sign paperwork electronically, and track your loan progress. The loan closing will need to be in person, though. 

Connexus Credit Union: Mortgage Rates and Fees 

Connexus Credit Union advertises daily interest rates for conventional loans with 30-year, 20-year, and 15-year terms along with a few ARM products and refinance loans. You can also customize a rate quote based on your credit score, down payment, and loan amount. 

The rate-quote tool also estimates your closing costs, which can vary with each loan and location. Some of these costs include:

  • Appraisal fee
  • Credit report fee
  • Discount points (optional)
  • Employment verification fee
  • Flood certification
  • Government recording charges
  • Origination charge
  • Tax service fee
  • Title services such as attorney fee, survey, and title insurance 

Mortgage customers can get a discount up to $600 off closing costs for both purchases and refinances with a minimum loan amount of $150,000. Connexus doesn’t charge prepayment penalties, so you won’t be on the hook for an extra fee if you decide to sell your home, refinance, or pay off the balance soon after closing. 

According to a loan officer we spoke with, borrowers need a credit score of at least 640 to qualify for a conventional purchase loan and a down payment of either 3% or 5%. 

Borrowers can lock in a mortgage rate for up to 60 days initially and then pay a fee to extend the rate lock. Currently, Connexus is closing loans within about 45 days.

Refinancing With Connexus Credit Union

If you have an existing mortgage, you can refinance with Connexus using the following options:

  • Cash-out refinance: If you have enough equity in your home, you can take out a mortgage for more than you owe, pay off the original loan, and keep the difference in cash (minus closing costs). You can use the money for any expense, but your loan payments will increase and you may lengthen your payoff timeline.
  • Rate-and-term refinance: This option allows you to get a new mortgage with a new interest rate, loan term, or both. Homeowners often do this to save money on monthly mortgage payments, get rid of private mortgage insurance, or accelerate their payoff timeline.

Connexus Credit Union Compared to Other Mortgage Lenders

Connexus Credit UnionPennyMac Loan ServicesTruist Mortgage
Minimum credit score640Typically 620 for a conventional loan and 580 for FHA loanNot provided
Minimum down payment3% to 5%Typically 3% to 5% for conventional loan; 3.5% for FHA loan; 0% for VA loan and USDA loan0% for VA and USDA; 3% for conventional; 3.5% for FHA
Where does the lender operate?47 states and Washington, D.C. (other products available in all 50 states)49 states and Washington, D.C.47 states and Washington, D.C.
Major loan typesConventional, fixed-rate, ARM, refinance, cash-out refinanceConventional, VA, FHA, USDA, fixed-rate, adjustable-rate, refinance, cash-out refinance, several streamlined refinance optionsConventional, jumbo, VA, FHA, USDA, construction loans, adjustable-rate, fixed-rate, several refinance programs, home equity loans, home equity lines of credit

How to Shop Around to Get the Best Mortgage Rate

Before you start touring homes, it’s a good idea to contact a lender and ask for a mortgage preapproval. The lender will pull your credit and look over your financial situation, then give you a letter that shows how much you can borrow. This preapproval letter helps you set a homebuying budget and supports your purchase offer. 

You don’t have to get a mortgage with the lender that preapproves you, though. After you find a home and the seller accepts your offer, you can submit loan applications to multiple mortgage lenders. To reduce the hit to your credit, try to submit these applications within a short time frame, about two to four weeks. The lenders will give you a Loan Estimate, which is a document that lists your interest rate, annual percentage rate, closing costs, and loan terms. Use these documents to compare offers, and use an online mortgage calculator to figure out how much you’d spend on interest with each. 

According to research from the Consumer Financial Protection Bureau, interest rates can vary by 0.5% or more between two similarly qualified borrowers. But even a smaller difference in interest rates can help you save a lot of money over the life of the loan. 

For instance, take a look at one example: Let’s say you receive two mortgage rate quotes on a home worth $200,000 with a 20% down payment and 30-year term.

Interest rateMonthly principal and interest rateInterest saved
3.25%$696
3.00%$674$22 per month or $7,920 over the loan term

With a 3.25% interest rate, the monthly principal and interest payment comes out to $696. But with a 3.00% interest rate, you save $22 a month on interest costs. That adds up to $7,920 in savings over 30 years. 

Editorial Independence

As with all of our mortgage lender reviews, our analysis is not influenced by any partnerships or advertising relationships. For more information about our scoring methodology, click here.