Our experienced team knows how to open doors
Buying a home is a big moment in anyone's life. At Transcend Credit Union, our goal is to help make it a happy one. You can count on the Transcend team to explain all of your loan options, highlight the important details, and help you decide on a loan that works for your current and future finances.
How Do I Qualify for a Home Loan?
Home loans come in many forms, and knowing what you want to buy is your first decision because that may influence the kind of loan you get. Looking at your personal history may also influence your mortgage options. For example, you may qualify for certain loans if you are former military. The most important thing is to be sure that taking on a home loan will be right for you, and will fit in comfortably to your monthly budget. Your credit score will help you to see your prospects the way a financial institution sees it. If you need help sorting out your credit score, check out our Financial Education page.
Are There Different Kinds of Mortgages?
Yes, but they are pretty easy to understand. The first things to know about mortgages are the length (term) of the loan and the interest rate (fixed or adjustable). Mortgages are generally made for terms between 10 and 30 years, and the property itself acts as collateral for the loan. Whether you choose a fixed or adjustable rate may make a difference to the initial interest rate, and could affect your eventual payoff amount at the end of the loan’s term. Check out our “Guide to Buying a Home” for an overview of what you need to get the mortgage process rolling.
How Much Down Payment Should I Make?
Home loans may be made for as little as a 3% down payment. But there are a few things to be aware of. First, your interest rate may be positively affected if you put more money down initially. And second, you may find that mortgage insurance (often called PMI, or private mortgage insurance) adds substantially to your monthly payment. 20% down has been the gold standard for down payments for mortgages, and many loaning institutions require 20% of the loan’s value to be paid before you can stop paying for PMI. For more information, check out our post “How Much Money Should a First-time Home Buyer Put down?”
Adjustable-Rate Loans
Transcend Credit Union offers Adjustable-Rate Mortgage Loans that let you get into a new home with a low down payment and an interest rate that is below the current market rate. The rate adjusts every five years, and is capped, so your interest rate will not go above an agreed-upon percentage rate.
The 5/5 ARM rate adjusts every 5 years. 5/5 ARM Repayment Example: $100,000 financed at 5.99% annual percentage rate (APR) with a term of 360 months would result in a principal and interest payment of $598.91; if the rate were to adjust to 7.99% APR, 360 payments at $733.07; if the rate were to adjust to 9.99% APR, 360 payments at $876.84; if the rate were to adjust to the cap of 11.99% APR, 360 payments at $1027.85. Payments do not include amounts for taxes and insurance premiums and the monthly payment obligations will be greater if taxes and insurance are included. The principal and interest portion of your payment may be higher at the beginning of each new ARM term based on market conditions. Loans must be for a primary residence, in first lien position. Additional conditions and restrictions may apply.
Fixed-Rate Loans
Stable monthly payment over the term of the loan is the defining feature of fixed-rate mortgage loans because the interest rate is locked in when your loan is established. Transcend Credit Union offers two mortgage loans with fixed rates, so you have options for the features you prefer. You can try out the terms on one of our financial calculators to see the effect of various choices.
Loans must be for a primary residence, in first lien position. Borrower debt to income ratio may not exceed 38%. Lowest quoted rate requires a maximum loan to value (LTV) of 80%. Additional conditions and restrictions may apply.
Transcend Credit Union and its employees who are Mortgage Loan Originators are registered in the Nationwide Mortgage Licensing System (NMLS). Their identification numbers are as follows:
- Contact the Nationwide Mortgage Licensing System at nmlsconsumeraccess.org.
- For more information on home buying, go to MGIC for Homebuyers.
*APR= Annual Percentage Rate. APR does not include items such as prepaid interest, optional owner's title insurance, and optional escrow services, which could increase the effective APR. All loans subject to credit approval. Rates are based on evaluation of credit history, loan-to-value, and loan term, so your rate may differ. All rates, terms, and conditions are subject to change at any time without notice. Many of these programs carry discount points which may impact your rate. Other restrictions may apply. Payment example: $100,000 mortgage for a term of 360 months (30 years) at rate of 7.00% APR will result in a monthly payment of $665.31. Payments do not include amounts for taxes and insurance premiums and the monthly payment obligation will be greater if taxes and insurance are included, and an initial member deposit may be required if an escrow account for these items is established.
Financial Education
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