Mortgage Advice
Home Loans
Long-Term Mortgage Loans -
When you find your perfect home or want to refinance, call our Mortgage Lending Department.
We can finance your home with either of the following conventional loan options:
Fixed Rate Conventional Residential Mortgage Loan
Adjustable Rate Mortgage (ARM) Loan
Both mortgage loan options allow for financing up to 95% of the current appraised value of the residence or purchase price, whichever is less, with a minimum loan amount of $20,000. Private Mortgage Insurance (PMI) is required, if financing is over 80%.
Short-Term Mortgage Loans -
Short-term mortgage loans are also available, with fixed or variable rates, for the following:
• Purchase
• Home Improvement
• Debt Consolidation
• Home Equity Line of Credit (HELOC) (Variable Rates Only)
• Mobile Home (less than five years old) and Land
Short-term first mortgage loans for mobile homes with land can be financed for up to 80% of current appraised value or sale price, whichever is less. Second mortgage loans can be financed for up to 80% of current appraised value, less any existing mortgage balance, with no points or origination fee.
Home Equity Line of Credit -
Is it time for a pool? Need to expand your home for a growing family? Want to consolidate some bills?
Red River Federal Credit Union can help with a Home Equity Line of Credit.
You can borrow against your Home Equity Line of Credit and use the money for whatever you like.
With a Home Equity Line of Credit, you can borrow up to 75% of the appraised value of your home, less the balance of the first mortgage. Plus, you'll only have to apply once. Once your loan is approved, you can make loan advances at Red River Federal Credit Union .
An additional benefit to a Home Equity Line of Credit is that interest on this loan may be tax deductible.
(Tax Deductibility: you should consult a tax advisor regarding the deductibility of interest and charges for a Home Equity Line of Credit.) Loan Rates are subject to change without notice.
Evaluating
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Should I rent or own my home?
Before you even begin the shopping process, the first question you may ask yourself is, on the surface, quite basic: Does it make sense for you to buy your home?
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Getting Your Home Ready for the Market
Any marketing or sales professional will tell you that the packaging is just as important as the product you are selling.
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It Pays to Ask Questions when Shopping for a Home
Home Buyers often look at dozens of homes before finding the one that fits the bill. In order to avoid unpleasant surprises after you've moved in, you'll need to get answers to some direct questions.
Financing
Purchasing
Home Equity Loans
Mortgage Glossary
A
Amortization
Loan payment by equal periodic payments calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance.
Annual Percentage Rate (APR)
The cost of credit expressed as an annual rate. It must be calculated by using a formula set by federal law and disclosed to the borrower to aid in comparing different credit plans.
Appraisal
An estimate of the value of property; made by a qualified professional called an "appraiser".
C
Commitment
An agreement, often in writing, between a Lender and a Borrower to loan money at a future date subject to the completion of paperwork or compliance with stated conditions.
Construction Loan
A short-term interim loan for financing the cost of construction. The Lender advances funds to the builder at periodic intervals as the work on the property progresses.
Conventional Loan
A mortgage not insured by FHA or guaranteed by the VA or Farmers Home Administration (FmHA).
Credit Report
A report documenting the credit history and the current status of a Borrower’s credit standing.
D
Debt-To-Income Ratio
The ratio, expressed as a percentage, which results when a borrower’s monthly payment obligation on long-term debts is divided by their gross monthly income.
E
Equity
The difference between the fair market value of the asset and the current debt balance against it; also referred to as the Owner’s interest.
Escrow
Refers to a neutral third party who carries out the instructions of both you and the Seller to handle all the paperwork of settlement or "closing". Escrow may also refer to an account held by the Investor into which you would pay money (usually monthly along with your mortgage payment) for annual or semi-annual tax and insurance payments.
I
Inspector
Professional that examines a home to evaluate its plumbing, electrical work, roof, structural stability, heating and cooling systems, and appliances.
L
Loan to Value Ratio (LTV)
This is the relationship between the amount of the mortgage loan and the appraised value of the property, expressed as a percentage. For example, if you received a $95,000 loan on a home worth $100,000, the LTV Ratio would be 95%.
P
Points
This is a dollar amount paid to a Lender for making a loan. A point is one percent of the loan amount.
Private Mortgage Insurance (PMI)
This may be required by your Lender if the loan does not meet the normal standards of the Lender. The most common reason for this is a smaller down payment made by the borrower than the Lender usually requires. This insurance protects the Lender from a loss if the borrower defaults. It does NOT protect the borrower, though it may allow the Borrower to qualify for the loan. The borrower pays the cost for PMI.
R
Real Estate Broker
The seller of a house pays a real estate broker to attract potential buyers and help negotiate the contract between the seller and the buyers. The broker identifies available properties for buyers and shows them properties that meet their personal criteria.
T
Title
A document that gives evidence of an individual’s ownership of property.
Title Search
An examination of municipal or county records to determine the legal ownership of a property, usually performed by a title company.
