Congratulations, you are on the search for a mortgage to purchase your dream home! Now, where do you start? Here at Peninsula Federal Credit Union, we have many qualified and friendly mortgage officers that can help you figure that out. What’s that? You want some information on what we offer before you stop in? Of course, let me tell you what we’ve got!
Mortgage options include 10-year, 15-year, and 20-year fixed mortgages. This means over that time frame, or term, your interest rate will stay the same.
We also offer 3-year, 5-year, and 7-year balloon mortgages amortized over 30 years. Now, if you aren’t familiar with mortgage jargon, let me explain.
Let’s use the 3-year balloon option for our example. You take out a mortgage at X% so for those 3 years you’re locked into that rate. Once the 3 years are up (balloon pops!) there will still be a chunk of the mortgage to pay. At this point, we would run your credit report to determine your current credit score. Your new interest rate would be based on your new credit score in combination with the rates we are offering at that time. From here you can renew into another balloon (wash, rinse, repeat) or into a fixed rate mortgage.
Now, if you’re thinking you like the idea of the 30 years to pay off your mortgage, but are kind of leery about that balloon thing, we have another possible option. We can look into a mortgage through Fannie Mae. What the heck is that you ask? We’ll have to save that for another blog, but just know that it’s a program that allows 30-year fixed mortgages. However, there are more eligibility requirements for this program, including minimum credit score (620).
So, as you can see, we have a few options to choose from if you’re looking to purchase a home. But what if you already own your dream home and want to refinance it? All the options I’ve gone through are available for that as well!
Phew, that was a lot of information to go through in a short blog post. There is way more to learn about these products and terms, but it’s a good foundation to start with. Welcome, friends, to the wonderful world of mortgages!
This blog is not on behalf of Peninsula Federal Credit Union.
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