Becoming a homeowner is an exciting yet challenging journey. Finding the right home at a price you can afford, along with snagging a mortgage loan that offers competitive interest rates and lower fees and closing costs will be the keys to your success.
Here are two smart moves to be able to find and finance your dream home.
Make a Lower Down Payment
There are many low or no down payment loan option on the market today, although in most cases, the lender requires private mortgage insurance (PMI) to protect them with down payments of less than 20 percent, should homeowners default on their loans. Typically, PMI costs between 0.5% to 1% of the home loan amount each year. So for instance, if you have a $250,000 mortgage loan, your PMI payment could be as high as $208 a month.
SchoolsFirst FCU offer a 30-year fixed School Employee Mortgage that features down payments as low as 5 percent, no PMI and discounted loan processing fees. For first-time buyers we offer a program featuring a very low 3 percent down payment that requires PMI.1
Buy at the Right Time
While most people choose to buy during the summer months, you’ll get a better deal on a home if you consider buying when cold weather sets in, according to National Association of Realtors (NAR). While it may be harder to determine a good time to buy, you’ll want to avoid any times when each house on the market sparks a bidding war, and sells for 20 percent over the asking price. When this happens, it’s a good idea to take a step back, and be patient.
Expert Guidance When You Need It
We’re here to answer your questions and provide guidance through every step of the homebuying process.
Interested in a Mortgage Loan?
It’s Easy to Apply
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 $300,000 loan for a term of 30 years with a 4.06 percent APR the monthly payment will be
$1,442.64.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.
Equal Housing Lender
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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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