Let us bring you home with a First Mortgage from South Jersey Federal Credit Union.
Maybe you’re buying your first home...or “moving up” to a bigger one… OR maybe you are finally buying that vacation or retirement home you’ve been dreaming about for years. Well at South Jersey Federal Credit Union, we are here to help with all your mortgage financing needs. Our rates and options are some of the most competitive in the market today; and top-notch service from our team of lending professionals is second to none.
Click on the links below to learn more.
How Mortgage Loans Work?
What Kind of loan can I get?
How Much Home
can I Afford?
Rates
Second Mortgages/Home Equity Loans
Protection Plans
Home Mortgage Disclosure Act Notice
How Mortgage Loans Work?
A mortgage or property loan, is usually a long-term commitment. There
are many different types of mortgages so it is important to find the mortgage
that is right for you. The most popular term, or length of the loan, is
30 years. Applying for and getting a mortgage loan can be a complicated
process – so learning as much as you can about what to expect will
make you more comfortable as you move forward.
When you sign a mortgage agreement, you are agreeing to repay the principal,
which is the actual amount you are borrowing…plus interest –
whish is a percentage you pay over and above the amount financed. You
can choose a mortgage with an interest rate that is fixed –or in
other words remains the same for the entire term of the loan. You also
have the option to choose an adjustable-rate mortgage, often referred
to as an ARM where the interest rate will vary during the life of the
loan.
Typically, when you apply for a mortgage, you will make a down payment – that is, you will pay a certain percentage of the purchase price in cash up front . The down payment represents your equity, or personal investment in the house.
A lender may charge a loan origination fee - a fee paid to a lender for processing a loan application. The origination fee is also known as points. Simply put, a point is 1 percent of the amount you are financing. Typically, the more points you pay, the lower the interest rate.
Closing or settlement is the final step of the mortgage process. At the closing, your mortgage is initiated, and you take possession of your new home. Closing costs, which vary from state to state. may include:
Transfer Taxes: State or local tax payable when title passes from one owner to another, and recording taxes.
Title Insurance: An examination of municipal or county records to determine the legal ownership of property, usually performed by a title company
Survey: A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features.
Discount Points: 1 percent of the amount you are financing
Appraisal: A written analysis of the estimated value of a property prepared by a qualified appraiser.
Attorney Fees
Document Preparation Fees
A variety of mortgages are currently available.
The challenge is to select the loan term that meets your needs.
Fixed Rate
Borrowers who opt for a fixed rate mortgage, the most popular type of mortgage, enjoy the comfort and security of knowing that their interest rate will remain the same for the life of the loan.Adjustable-Rate
With an adjustable-rate mortgage (ARM), the interest rate you pay fluctuates periodically to keep in line with the shifting market rates. In other words, when interest rates go up, your monthly mortgage payments may go up as well. On the other hand, when interest rates go down, your monthly mortgage payments may go down.Government Loans
The Federal Housing Administration (FHA), an agency within the U.S. Department of Housing and Urban Development (HUD) that administers loan programs and issues loan guarantees to make more housing available; and the U.S. Department of Veterans Affairs (VA), are agencies that offer government-insured loans. To obtain these loans you apply through a lender that is approved to handle them. With FHA loans, you can purchase a home with a very low down payment. FHA mortgages have a maximum loan limit that varies depending on the average cost of housing in a given region. The VA guarantee allows qualified veterans to buy a house costing up to $203,000 with no down payment. Also, the qualification guidelines for VA loans are more flexible than those for either a FHA or conventional loan.
Home Mortgage Disclosure Act Notice
The HMDA data about our residential mortgage lending are available for
review. The data shows geographic distribution of loans and applications;
race, gender and income of applicants and borrowers; and information about
loan approvals and denials.
*Inquire at the main office regarding the locations where HMDA data may
be inspected.
