Buy a home
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.Mortgage Calculator 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
More Resources for Home Buyers
There are many financial and practical decisions involved in purchasing a home. Visit our Mortgage Center for a complete list of questions and information you need to get to your front door quickly and efficiently!Mortgage Center
Terms and Conditions
APR- Annual Percentage Rate.
Mortgages available only to members and only for properties located in the following states: Illinois, Indiana, Michigan, New Jersey, New York, Pennsylvania, Wisconsin.
All Selfreliance FCU loan programs, rates, terms and conditions are subject to change at any time without notice.
*All home lending products are subject to credit and property approval. The rate you receive will be based upon occupancy, collateral and loan characteristics.
**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.
Adjustable Rate Mortgage
After the initial fixed rate period of either 5 or 7 years, 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 with a 2% annual change cap and a 5% life time cap. The stated Annual Percentage Rates (APRs) are all based on $100,000 mortgages
Fixed Rate Mortgage
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. The stated Annual Percentage Rates (APRs) are all based on $100,000 mortgages.
Higher loan limits available in High-Cost areas. Jumbo loan rates apply for higher loan limits.