Whether you’re in the market for a new house, or want to re-finance or borrow money against the equity in your home (to get a better rate, pay off other debt or take your dream vacation), Vons Credit Union has a number of loan programs to help you.
|First Mortgage (1st Trust Deed)||The oldest recorded Deed of Trust on your home is in the first (1st) position. It is usually from the initial purchase of your home or may have been refinanced to a new 1st Trust Deed. We can help you, whether you are making that purchase or have decided to refinance to a better rate, possibly with lower payments. Typically, banks offer 15 or 30 year repayment terms, but at Vons Credit Union, we have a wider variety of terms that will meet your specific needs.|
When interest rates drop lower than the rate you currently have on your first mortgage, it may be in your best interest to refinance the loan to lower your payments and reduce the amount of interest you will pay over the life of the loan. Certain fees do apply, so all factors should be taken into consideration before refinancing your loan.
|Equity 1st or 2nd Trust Deeds||If your home does not have an existing mortgage (or you would like to leave the existing mortgage alone), you can use the equity in your home to get extra cash. This money can be used for any purpose. If you know exactly how much money you need and would like the convenience of a fixed rate and a fixed payment, choose this option.|
We offer loans from $50,000 to $100,000. You must leave at least 25% equity (75% combined loan-to-value) in your home.
|Mini Home Equity Loan***||If your loan needs are smaller ($10,000 to $49,000) or you will leave 25% equity in your home (75% combined loan-to-value), a mini loan will fit that need, and it works just like the regular Equity 1st or 2nd Trust Deed loan. You get the convenience of a fixed rate and can use the money for any need.|
|Home Equity Line of Credit (HELOC)||
HELOC allows you to open a revolving line of credit using the equity you have built up in your home as a basis. The interest rate is variable and will change based on the state of the economy and other factors. Many people use a HELOC to make home improvements, pay for unexpected expenses or to pay off higher-interest rate debt.
There are also many variables you must consider before choosing a mortgage, including interest rate type, points and fees, which are described below. Different options are better for different financial situations, so you should carefully consider your options before making a choice.
|Fixed-Rate Mortgage||A fixed rate mortgage has the same interest rate for the duration of the loan. Obviously, this is preferable when interest rates are low enough that you would not mind paying them for the duration of your mortgage. If interest rates drop, you can refinance the loan.|
|Adjustable-Rate Mortgage||An adjustable rate mortgage has a fluctuating interest rate tied to a rate index, meaning that the rate will change based on the state of the economy and other factors. This is usually a better option for a buyer who will be selling after only a short time because the initial rate is lower than a fixed-rate mortgage.|
|Hybrid Mortgage||Hybrid mortgages have a fixed-rate for a portion of the term and an adjustable rate for the remainder.|
|Points||You have the option to pay more money up front in order to reduce the interest rate on your mortgage. This is known as paying "points." Each point is equal to one percent of the amount of the loan. Points are a good option for buyers planning to live in the home for a long time because the interest rate can be reduced significantly. For short-term buyers, however, points add to the closing costs and do not provide as much benefit in the short run.|
|Fees||Some loans, like our Equity Loans or Heloc's do not come with up-front fees. Their rates maybe higher than loans that come with fees, but may be a better alternative for lower loan amounts or shorter term loans. These loans may come with early Line of Credit cancellation fees. Make sure you know all the facts. For a larger loan amount or over a longer period of time, it may be worthwhile to pay fees (closing costs) if it will reduce the total costs over the life of the loan.|
Getting a mortgage can be a time-consuming process but, considering that it will usually be paid over 15 or 30 years, it is worth a great deal of effort to save money in the long run. It is important to have a good handle on your personal finances and credit situation before trying to obtain a mortgage. Lenders will review this information carefully, so it's a good idea to make sure everything is in order first.
Check out our Mortgage Rates CLICK HERE