What type of Mortgage Loans does the credit union offer?
A Fixed rate loan. A fixed rate is one that will remain the same throughout the maturity of the loan.
What are the advantages to buying a home instead of paying rent every month?
The number one advantage is gaining an asset. A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you’ll enjoy having something that’s all yours – a home where your own personal style will tell the world who you are.
How long does it take to close on a home loan once the process starts?
Usually it is a 4 to 5 week process.
What are escrow accounts and how much do I need in my escrow account?
Escrows are payments made by a mortgagor to a mortgagee for the purpose of paying the mortgagor’s taxes, insurance, and other payments associated with home ownership. The mortgagee is responsible for the timely disbursement of escrow funds to pay the mortgagor’s bills as they come due.
Usually, a mortgage company collects funds for placement into the mortgagor’s escrow account with the mortgagor’s periodic payment for principal and interest. An escrow account has sufficient funds if there is enough to pay all bills when they come due.
It is common practice for mortgage companies to hold an escrow cushion of a minimum of 2 months of insurance and taxes for a mortgagor. The cushion is kept by the mortgage company to assure that if the cost of any escrowed item were to increase in the future, there would be sufficient funds to pay all bills as they come due.
Which Loan Program is right for me?
There is no simple answer to this! The “right” loan depends upon your needs, your finances, your available down payment, your expectation of financial changes, your comfort with different house payment amounts, and especially how long you intend to keep your home and its mortgage. However, the best answer to this question will come from one of our Loan Officers after careful discussion of the various factors in this paragraph.
How do I know if it makes sense for me to refinance?
First determine your financial mortgage related goals: i.e. are you looking to improve your monthly cash flow, reduce your mortgage term, do you need to take out cash utilizing the equity from your home? Obtaining the right mortgage for your particular needs could make sense even when rates are not at their lowest levels.