CU Mortgage Direct Interest Rate and Cost Review

Is CU Mortgage Direct a cheap or expensive mortgage lender? To help you shop for a mortgage, we compare the interest rates and closing costs charged by CU Mortgage Direct to those of other lenders for a comparable set of borrowers. Here is our review of CU Mortgage Direct nationally:

Review ItemCU Mortgage Direct
Interest Ratesimilar to other lenders (-0.03%)
Loan Related Closing Costssimilar to other lenders (+$89)
National Rate and Closing Cost Star Rating(3.5)

On average, CU Mortgage Direct’s interest rates were similar to those of other lenders (-0.03%). Its loan related closing costs were also similar to those of other lenders, with a difference of +$89. We maintain our independence by not accepting any money from the mortgage lenders we review. To visit CU Mortgage Direct, check out its website at:

CU Mortgage Direct’s Rate Review by City

Mortgage lenders often set different rates in different geographical markets. For our list of the top mortgage lenders by city, click here. In particular, among the cities we track CU Mortgage Direct was most active in:

  1. Sioux Falls, SD
  2. Watertown, SD
  3. Yankton, SD
  4. Sioux City, IA
  5. Rapid City, SD

In addition, CU Mortgage Direct is our top ranked/best mortgage lender in terms of interest rate and closing costs in:

CU Mortgage Direct’s Rate Review by Mortgage Type

Mortgage lenders also tend to charge different interest rates and closing costs depending on the type of mortgage. In our data, CU Mortgage Direct originated Conforming, FHA, USDA and VA mortgages for new home purchases. It also originated Conforming, FHA and VA mortgages for refinances. Its average interest rate and total loan related closing cost difference relative to other lenders for comparable borrowers by mortgages type is as follows.

New Purchase MortgagesConformingFHAUSDAVA
Interest Rate Difference-0.02%-0.05%-0.03%-0.12%
Loan Related Closing Cost Difference+$124-$8+$16+$37
Cost Adjusted Rate Difference-0.02%-0.05%-0.03%-0.12%
National Star Rating(3.5)(4)(3.5)(4)
Refinance MortgagesConformingFHAVA
Interest Rate Difference+0.01%-0.05%-0.10%
Loan Related Closing Cost Difference+$139+$0-$58
Cost Adjusted Rate Difference+0.02%-0.05%-0.10%
Average Star Rating(3.5)(3.5)(4)

As a summary, CU Mortgage Direct is cheap for FHA and VA purchase mortgages. It is similar to other lenders for Conforming and USDA purchase mortgages. For refinancing mortgages, CU Mortgage Direct is cheap for VA mortgage refinance. It is similar to other lenders for Conforming and FHA mortgage refinance. Nevertheless, individual circumstances can matter a lot for mortgage rates, and we always recommend shopping among several of our top mortgage lenders in your area before signing.

Other information about CU Mortgage Direct:

Registered name: CU Mortgage Direct
Registered city and state: SIOUX FALLS, SD, 57108
Regulator: National Credit Union Administration (NCUA)

* Source of the data is Federal Financial Institutions Examination Council (FFIEC) and is for mortgages originated in the past year. Our comparable mortgages analysis controls for CU Mortgage Direct’s distribution of loan term (e.g. 30 year vs 15 year), loan-to-value (LTV), debt-to-income (DTI), loan amount, loan program (e.g. Conforming/FHA), loan purpose (e.g. purchase/refinance), and commuting zone. Cost adjusted rates were computed based on each percent of the loan amount in above average loan related closing costs being worth +0.15 of a percentage point in interest rate. Furthermore, the amounts are regularized using a Bayesian approach to control for small samples.