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Whether you’re looking to make a move or it’s time to refinance, choosing the right financing can seem a little overwhelming – with so many options, how do you decide what’s best for you?
We’re here to help you learn more about Mortgage loan options, so you can find the right option for your needs – and live more as a result!
A term is the length of time it will take to pay off your mortgage. Mortgage loans are usually made for terms between 10 – 30 years. A shorter term results in a higher payment but lower interest charges over the course of the loan.
Fixed versus Adjustable Rates
A fixed-rate loan means the principal and interest payments will not change over the term of the loan. However your monthly payment may go up or down as a result of changes to tax and insurance obligations.
While we do not offer, an adjustable-rate mortgage or ARM means the interest rate you pay may go up or down periodically in reaction to economic conditions. Initial pricing on ARM loans is generally more attractive than fixed-rate options. If you are certain of a shorter-duration ownership, an ARM loan may be the right choice.
Can’t decide between fixed or adjustable rates options? This is where we can help! Don’t be afraid to share your current situation and plans, so we can ensure you are matched with the right loan for your needs.
Types of Mortgage Loans
- Conventional loans: These are one of the most popular types of home loans and abide by rules established by Fannie Mae and Freddie Mac. Neither of these entities make loans themselves – instead they set the approval standards and encourage consistency from one lender to another across the country.
- Conforming loans: Much like a Conventional Loan, a conforming mortgage loan is one that satisfies the terms and conditions set forth by Fannie Mae, Freddie Mac, and their regulator, the Federal Housing Finance Agency (FHFA), including limits on the max amount a consumer can borrow. .
- FHA Loans: These types of loans are intended to promote home ownership for people with less than perfect credit or limited down payment resources.
- VA Loans: These loans are specifically for eligible, active duty military, veterans and their spouses to purchase a home with zero down payment.
- Reverse Mortgages: While we do not offer Reverse Mortgages, we have been asked about this type of loan. If you’re 62 or older, this type of loan allows you to convert part of the equity in your home into cash without having to sell your home or pay additional monthly bills.
Be aware: a reverse mortgage can be complicated and might not be right for you. If you are considering a Reverse Mortgage as a result of a financial hardship, consult our Credit Union professionals to learn more about other options available to you as a member with us!
Mortgage Loans: Bank vs Your Credit Union?
It’s true that we offer many of the same types of loans you will find at area banks, so what’s the difference in the loans with us versus a bank?
Service, first and foremost. You’re not a customer, you’re a member-owner, and we work for YOU throughout the entire process.
And while our rates are competitive (or even lower) than other banks in the area, our closing costs are generally much lower. For more information, click here to visit our HOME LOAN center or call our offices, and we’ll be happy to help.
806-358-7777 | firstname.lastname@example.org
Equal Housing Lender