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Whether you are purchasing a new home or your first home, Selfreliance Federal Credit Union has competitive mortgage and refinance rates to get you from open house to closing. Take advantage of today's mortgage rates and get prequalified for a fixed-rate or adjustable-rate mortgage loan.
ARM or Fixed Rate Mortgage?
With a fixed–rate mortgage, you'll always know what your monthly principal and interest payments will be. An adjustable-rate mortgage (ARM) offers a lower fixed-rate for a limited amount of time. Your rate is fixed for the initial 5 or 7 years of the loan, and becomes variable for the remaining loan term, adjusting every year thereafter. For example, a 5/1 ARM would have a fixed interest rate for the first five years and then convert to an adjustable rate, with annual adjustments for the remaining term of the loan.
If you're settled into your career, have a growing family or are ready to settle down in a community you love, a 15- or 30-year fixed-rate mortgage may be right for you. If rates drop a few years into your mortgage, you can always take advantage by refinancing into lower rate fixed mortgage. Adjustable-rate mortgages, on the other hand, most often appeal to first-time homebuyers giving the benefit of a lower introductory rate and the flexibility to move away or trade up in the short term. Our lending experts will gladly walk you through the options to arrive at the best solution for you.Schedule Appointment Get Prequalified Today
Rate vs. APR
Both the APR and the interest rate are ways for you to comparison shop. The interest rate is the cost of borrowing the principal loan amount. The APR is a broader measure of the cost of a mortgage because it includes the interest rate plus some, but not all, other costs such as broker fees, discount points and some closing costs.
For adjustable rate mortgages, APR can be a bit confusing. Since no one knows exactly what the market conditions will be in the future, the APR shown is a forecasted rate based on current market conditions.
Fixed Rate Mortgage: 15 or 30 Years?
You can save thousands in interest over the life of your loan by choosing a 15-year term over a 30-year term. Your monthly payment, though, will be higher. For example, let's say you have a $100,000 15-year fixed rate purchase mortgage with a 20% down payment, and a 3.5% interest rate. Your repayment schedule will be 180 monthly payments of approximately $715. The same purchase over 30-year period with the same interest rate will lower your monthly payments to $449, but will generate an additional $32,977 in interest fees over the course of the mortgage loan.**
If you plan to purchase a home that costs half a million dollars or more—and you don't have that much sitting in a bank account—you're probably going to need a jumbo mortgage. Designed to finance luxury properties and homes in highly competitive local real estate markets, jumbo mortgages are a type of financing that exceed the conforming loan limits*** set by the Federal Housing Finance Agency (FHFA). A jumbo loan carries higher interest rates than conforming loans, and requires a 20% down payment.Mortgage Calculator Get Prequalified Today
*Mortgage Terms and Conditions
Mortgages available only for the following owner-occupied properties: single family residences, qualified condominiums or multi-family structures with no more than four units and up to 80% LTV. Mortgages with down payments as low as 5% (up to 95% LTV) are available only for the following owner-occupied properties: single family homes and multi-family structures up to 2 units and will require private mortgage insurance (PMI). Subject to approval of application. Monthly payment amount does not include any property taxes, and/or insurance premiums; the actual payment will be greater when such items are included. Mortgages available only to members and only in designated geographic locations. All Selfreliance FCU loan programs, rates, terms and conditions are subject to change at any time without notice. Not all applicants will qualify for the lowest Annual Percentage Rates (APR) shown. Annual Percentage Rate (APR) is based on an assessment of individual creditworthiness, occupancy and/or property type, and our underwriting standards.
Adjustable Rate Mortgage
The 5/1 and 7/1 ARMs offer a fixed rate for the initial period of the loan and adjust to a one-year ARM after that period. The interest rate and monthly payment may adjust annually based on the weekly average yield on United States Treasury securities adjusted to a constant maturity of 1 year (the index) plus a margin of 2.50 percentage points (2.875 for Jumbo Loans) with a 2% annual change cap and a 5% life time cap.
5/1 ARM Payment for a $100,000 80% LTV loan with a 3.750% rate and 4.362% Annual Percentage Rate (APR), based on the current market condition, the payment schedule would be: 60 payments of $463 at an interest rate of 3.750% and 300 payments at $505 at an interest rate of 4.580%.
7/1 ARM Payment for a $100,000 80% LTV loan with a 4.000% rate and 4.387% Annual Percentage Rate (APR), based on the current market condition, the payment schedule would be: 84 payments of $477 at an interest rate of 4.000% and 276 payments at $505 at an interest rate of 4.580%.
Fixed Rate Mortgage
The stated Annual Percentage Rates (APRs) are all based on $100,000 mortgages, except for the Fixed Rate Jumbo Portfolio Mortgages which are based on $647,200 mortgages. For example, a $100,000 15 Year Fixed Rate Purchase mortgage with an 80% LTV will have a 4.472% APR and the repayment schedule will be 180 monthly payments of approximately $759.
**Payment examples are for illustrative purposes only, the actual rates you receive may be different. Examples do not include property taxes and/or insurance premiums,the actual payment will be greater when such items are included.
Higher loan limits available in High-Cost areas. Jumbo loan rates apply for higher loan limits.