Mortgage

Chances are that buying a home will be one of the biggest purchases you make in your lifetime. At HCCU, we want to guide you through the buying process with lending options that work for you, your future and your budget. Here are a few helpful tips when selecting your home and lending options: Did you know, the average length of owning a home is 7 years? Depending on your situation, an ARM loan may be a better option than a 30 year mortgage. Shop for homes within your budget. Advisors suggest never exceeding a 1/3 of your gross income towards a mortgage payment. Look beyond the paint. Cosmetics issues can be repaired relatively inexpensively. However, major repairs such as cabinets, flooring, countertops, roof and appliances should be factored into the cost of the home for replacement. Already own a home and looking to remodel? We can help with that too!

What are my loan type choices?

3/1 ARM loan – A 3/1 ARM is a closed end loan with a maximum term of 30 years. During the first three years of the loan, the interest rate will remain the same as your initial interest rate. At the onset of the fourth year until the maturity date of the loan, the interest rate can change annually.

5/1 ARM loan – A 5/1 ARM is a closed end loan with a maximum term of 30 years. During the first five years of the loan, the interest rate will remain the same as your initial interest rate. At the onset of the sixth year until the maturity date of the loan, the interest rate can change annually.

5/5 ARM loan – A 5/5 ARM is a closed end loan with a maximum term of 30 years. During the first five years of the loan, the interest rate will remain the same as your initial interest rate. The difference between the 5/1 ARM is that the interest rate can only change every 5th year as opposed to annually.

7/1 ARM loan – A 7/1 ARM is a closed end loan with a maximum term of 30 years. During the first seven years of the loan, the interest rate will remain the same as your initial interest rate. At the onset of the eighth year until the maturity date of the loan, the interest rate can change annually.

10 Year Fixed – A 10 Year Fixed Loan is a closed end loan that is serviced directly from HCCU.  It’s a great option for locking in low rates while paying off your mortgage much earlier than a 20 to 30 year fixed rate and reduces the interest paid.

Fixed Rate/ Secondary Market Loan – A Fixed Rate Loan is a closed end loan with a maximum term of 30 years. The interest rate will not change over the life of the loan. At the present time all HCCU Fixed Rate loans are Secondary Market Loans, which means the loan will be underwritten following Freddie Mac or Fannie Mae guidelines and will be sold to Freddie Mac or Fannie Mae after the loan closes and is disbursed.

We offer Vacant Land Loans. If you are interested in a loan using vacant land as collateral, please choose the 3/1 ARM or the 5/1 ARM product.

For Construction loans or Home Improvement Loans, please contact a Mortgage Loan Specialist for more information.

For further details and full disclosures on all of loan products, please speak with one of our Loan Officers. You may also view and print loan disclosures and applications at the “Forms & Applications” page.