Need a larger home for your growing family? Or a smaller home now that the nest is empty? Choosing a realtor and searching for the perfect home can be a time consuming process. Getting a mortgage shouldn’t be time consuming too. That’s why SRFCU has a mortgage application process that is fast and easy!
FIRST MORTGAGE LOAN
A fixed rate mortgage maintains its original interest rate throughout the entire life of the loan. With a fixed rate mortgage, you’ll have the security of knowing what your mortgage payment will be every month. Available in 10, 15, 20, and 30 year terms. SRFCU now offers FHA, VA, and Homepath loans in addition to the conventional loans.
ADJUSTABLE RATE MORTGAGE LOAN (ARMs)
An Adjustable Rate Mortgage (ARM) loan offers a lower rate initially, but is subject to rate adjustments in the future. A lower loan rate in the beginning can maximize your up-front buying power. ARMs are available in standard programs that adjust annually or with an initial fixed rate for 3 to 10 years before the rate adjusts.
When buying a home for the first time, a mortgage can seem like a daunting thing that you don't understand. Here is some basic mortgage terminology that you need to know in order to make an informed decision:
TERM - A mortgage term is the length of time you have to pay off your loan. It could be anywhere from 10 years to 30 years. Like any loan, the longer you have to pay off your mortgage, the lower the payments will be. An important mortgage tip - in some cases, the shorter the term, the lower the interest rate.
The "rate" is the interest rate, which basically defines how much you will be paying the bank to borrow money from them. The interest rate offered to you is dependent on your credit rating, how much money you are able to put down, how much money you make and the value of the home you're buying. Rates can also change depending on the loan program.
Costs typically refer to closing costs, which are a part of every mortgage. You may see offers for "No Closing Costs" but these programs are rare. If you get a no closing cost loan, it usually means the mortgage company is making a large enough commission on your loan to cover the closing costs for you. Closing costs usually include an appraisal, recording fees on documents at the registry or deeds, attorney or notary fees and the like. Watch carefully for junk fees!