Are you hoping to become a homeowner this year? Before you start your search, take the time to understand the mortgage landscape. Getting the right loan can be as important as the home itself. The last thing you want to do is pay unnecessary fees or take on loan terms that might hurt your finances.
As a not-for-profit financial cooperative, SchoolsFirst FCU wants to demystify the buying process, and provide affordable solutions to help you achieve the dream of homeownership. Because we return profits after expenses to Members in the form of lower interest rates and low or no fees whenever possible, we offer highly competitive mortgage solutions, along with expert guidance to help you make the most of your money.
As you start researching your options, here are some loans you may want to consider.
First-Time Buyer’s Program
Most people know that one of the biggest hurdles to buying a first home is saving up enough money for the down payment and having enough cash on hand for closing costs. Because many consumers buy homes without putting 20% down, lenders usually charge private mortgage insurance, or PMI, to protect them if borrowers default on their loans. Our first-time buyer’s home loan features competitive interest rates, a low down payment — as low as 3%— as well as closing costs and minimal PMI coverage that is lower than FHA loans, making it a smart solution for those want to get into their first home but don’t have a lot of savings on hand.
School Employee Mortgage Program
If you’re a school employee, we offer a mortgage loan featuring competitive rates and a 30-year fixed term1. This means you’ll enjoy lower monthly payments than a shorter-term loan offers, and because the interest rate is fixed, your payments stay consistent. This mortgage also offers discounted loan processing fees and no PMI, which can help you save money over the long term and reduce your monthly payments. The School Employee Mortgage program features a 5% down payment option.
Adjustable Rate Mortgages
An adjustable rate mortgage, or ARM, offers a starting interest rate that’s lower than a fixed-rate mortgage at the beginning of the loan period. At the end of that timeframe – such as five or seven years – the interest rate will adjust up or down, depending on market conditions. If interest rates drop, your mortgage payment will be less each month, but if they rise, your payments will go up too. Our ARMs feature down payments as low as 5%, and a no PMI option. Frequently, people take advantage of the low rates ARMs offer and refinance before the fixed-loan period ends. If you’re considering an ARM, a loan consultant can help you understand exactly how they work, when your payment will adjust, how often it changes, and how high the interest rate could go.
Benefits of the Home Advantage Program
If you’re ready to get started on your homebuying journey, our Home Advantage program pairs you with an experienced SchoolsFirst FCU loan consultant and participating real estate agent who will guide you every step of the way; and you’ll enjoy valuable savings and benefits offered exclusively to program participants.
Members enrolled in Home Advantage receive a 20% rebate from the commission of the participating agent who represents them in their home purchase — or 25% rebates from the commissions when both a home sale and purchase are completed.1 through a participating Home Advantage agent.2
Expert Guidance When You Need It
Interested in a home loan?
It takes just minutes to complete an online inquiry.
Or call us at 800.462.8328, ext. 8288
Monday through Friday, 8 a.m.-7 p.m.
Saturday, 9 a.m.-3 p.m.
The pricing you may qualify for is based on factors including your credit rating and the combined loan-to-value (CLTV) of your property. A minimum credit qualifying score is required. Pricing is subject to change without notice. An approved application is required for pricing to be determined.
- For a $400,000 loan for a term of 30 years with a 4.53 percent APR the monthly payment will be
$2,033.88. Payments do not include taxes and insurance premiums, and that the actual payment obligation may be higher.
APR = Annual Percentage Rate. Disclosed APR includes 30 days of estimated prepaid interest.
2Rebate payment is made by First Team Real Estate or HomeSmart Evergreen Realty and is credited to your benefit at the close of transaction. Purchase price must be greater than $150,000 after all credit adjustments. All rebates are subject to limitations, lender guidelines, and other requirements. Certain properties may not be eligible for rebates. Rebate is 20% for purchase only of a residential property in California. Rebate is 25% for a residential property sale and purchase in California. In order to receive the 25% rebates, the home sale and purchase transactions must take place within six months of each other. Please consult a qualified tax professional for advice on tax implications from receiving a rebate. First Team Real Estate and HomeSmart Evergreen Realty are not affiliated with SchoolsFirst FCU.
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Extra Credit provides general information to help improve our Member’s financial lives. Every situation is different, so please contact us for guidance on your specific needs. The advice provided in Extra Credit is not intended to serve as a substitute for speaking to a loan representative, financial advisor, or BALANCE counselor who can help tailor a solution for you.
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