Mortgages

Current Rates
(as of 4/23/14)
30-Year Fixed Rate
Rate Points APR*
4.375% 0.000 4.419%
15-Year Fixed Rate
Rate Points APR*
3.375% 0.000 3.778%
10/1 ARM
Rate Points APR*
4.000% 0.000 4.365%
7/1 ARM
Rate Points APR*
3.750% 0.000 3.955%
5/5 ARM
Rate Points APR*
3.375% 0.000 3.495%
5/1 ARM
Rate Points APR*
3.250% 0.000 3.393%
3/1 ARM
Rate Points APR*
2.875% 0.000 3.095%
*Annual Percentage Rate
Rates subject to change.

 

Financial Learning Center
Learn more about:
Mortgages & Home Buying

Download Quick Guide:
Mortgage Loans



Mortgage Options from FMFCU

FMFCU has a variety of options for purchasing or refinancing your home. Our experienced loan officers will be happy to help you evaluate your options.

Conventional Mortgage

Conventional loans are made in accordance with the guidelines of Fannie Mae and Freddie Mac. Conventional loans allow the borrower to borrow up to 95% of the value of the home. The 5% down payment requirement must come from borrower funds. The maximum loan limits are reviewed annually and, if needed, changed to reflect changes in the national average price for single-family homes. Currently, this limit is at $417,000. Loans with less than a 20% down payment require the payment of Private Mortgage Insurance (PMI). PMI is insurance that the borrower pays to the lender and its coverage protects the lender in the event of default.

FHA Mortgage

FHA mortgages are made in accordance with the guidelines of the Federal Housing Administration. FHA loans were designed for low to moderate income borrowers who are unable to make a large down payment, however, borrowers of all income levels may qualify. FHA loans allow the borrower to borrow up to 96.5% of the value of the home. The 3.5% down payment requirement can come from a gift or a grant, which makes FHA loans popular with first-time buyers. The maximum loan limits are reviewed annually and, if needed, changed to reflect changes in the national average price for single-family homes. Currently, this limit is at $417,000. This mortgage type requires Mortgage Insurance Premium (MIP), which is insurance that the borrower pays to the lender and its coverage protects the lender in the event of default. MIP is required to be paid on all FHA loans, regardless of down payment amount and is significantly more expensive than PMI.

3/2 ARM Mortgage

This product is unique to your credit union and allows the borrower to borrow up to 100% of the purchase price with for those with a 720 score and a moderate amount of overall monthly debt. The minimum borrower contribution is 3% of the purchase price from borrower funds and the remainder of funds to close can come from a variety of sources including a gift, seller’s assist up to 3% of the purchase price, government grant, a withdrawal or loan against retirement funds, etc. There is no PMI or MIP requirement on this loan type. The maximum loan limit is $1,000,000.

Jumbo Mortgage

Jumbo loans are loans that exceed the conforming loan limit and, therefore, are unable to be purchased by Fannie Mae and Freddie Mac. The approval process typically follows conventional loan guidelines and can carry a higher interest rate.

Non-Conforming Mortgage

Non-conforming loans do not meet the guidelines of Fannie Mae, Freddie Mac or FHA. Most lenders would not have an alternative for borrowers not meeting these guidelines, but FMFCU will listen to each borrower scenario and see if a counter offer can be made for those who may be credit challenged yet have substantial equity in a property or the ability to for a significant down payment. FMFCU has several non-conforming loan options for members who may not otherwise be approved for a mortgage loan and they are reviewed on a case-by-case basis.

Construction Loan

Construction loans are loans that allow you to build your own home on your own lot using a General Contractor. This loan has a term up to 12 months and payments are interest-only and are priced at Prime Rate plus 2%. Funds are distributed to you and your builder according to a draw schedule. As construction nears completion, you can lock in the terms of your permanent financing.

Piggyback Mortgage

Some borrowers prefer to obtain two loans to purchase or refinance their home to avoid the payment of PMI, known as a piggyback mortgage or 80/10/10 or 80/15/5 financing.

Fixed-Rate Mortgage

The interest rate and principal payment remain unchanged throughout the length of the loan. We offer fixed rate mortgages with terms of 30-, 25-, 20-, 15- and 10 years.

Adjustable Rate Mortgage (ARM)

A loan with a payment that may adjust up or down based on interest rate changes. ARMs can be an attractive alternative since they offer lower interest rates than fixed-rate mortgages. When you see an ARM described as a 3/1 ARM or 3/2 ARM, the first number is the number of years the interest rate is locked in. The second number is the number of years between possible rate adjustments. These are known as hybrid ARM’s. We offer 1- year, 3/1, 3/2, 5/1, 7/1 and 10/1 hybrid ARM products.
Copyright © 2014 FMFCU. All Rights Reserved. Federally insured by NCUA.