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Mortgage
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Click to find information about refinancing your home or see below for first mortgages.
What is a mortgage loan?
A Mortgage loan is the money you borrow to buy a house.
The elements of a Mortgage loan are: the down payment, the principal, the interest, the period of time, and the amortization.
The down payment is a percentage of the total cost of the house that you pay when you sign the contract. The principal is the amount that you borrow in a mortgage loan during the period of time of your loan. The interest is the price you pay to borrow money. The period of time to pay your loan could vary from 1 to 30 years.
Amortization is the process of paying the principal during the years you have the loan. For example, if you have a loan for $100,000, the interest rate is 6% and you will make 360 monthly payments (30 years) of $600 a month. If you make extra monthly payments each year, you could pay your loan earlier and pay less total interest.
Insurance and taxes are monthly fees that cover the property taxes and insurance on the house.
Steps to follow:
- Prequalification; to see how much you can afford
- Complete the loan application
- Find a house you want to buy; you can use a real estate agent
- Make an offer to buy
- Get approved for a loan
- Find a real estate lawyer; transfers the property and money
- Get a property inspector; will inspect the condition of the house
- Find an insurance agent; sells insurance to protect against
Download the prequalification form and take it, or fax it, to your closest branch.
Loan characteristics
| Fixed | Adjustable | |
Term | 15, 20, 25 and | Up to 30 years |
| Financing | 90% | 90% & 95% |
| 1% | 0.75% |
What are the requirements to be eligible as a borrower?
- Must be members of Latino Community Credit Union.
- Must have valid Social Security or Tax Identification number.
- Minimum member contribution: $5,000
| Type of loan | 95% Financing | 90% Financing |
| Work History | Last 18 months | Last 12 months |
| Rental history | Last 12 months | Last 12 months |
| Credit history | One line of credit for 12 months | 1 line of credit for 12 months (including secured) |
| Alternative credit | Two payment histories for six months each | Two payment histories for six months each* |
| Taxes | Last year | Last year |
* Secured lines of credit: Two 12-month payment histories
Mortgage rates
| Loan to Value (LTV) | Initial Rate | APR |
| 90% | 5.75% | 4.95% |
| 95% | 6.75% | 5.87% |
| We offer 2 year adjustable rate mortgages up to 30 year terms. Origination fee is 1.0% of loan. **The interest rate may not change by more than 1% every two years or 8% over the life of the loan. Rates are subject to change. | ||
You may need to provide the following information
- Completed tax returns, including all attachments such as forms W-2 and 1099. These will be validated.
- Names, addresses, and phone numbers of current and previous employers.
- Pay stubs for the last 2 months.
- Bank statements for the last 2 months.
- Names, addresses, and phone numbers for recent landlords.
- Copies of leases you have now and have had in the recent past.
- Last six statements for utility bills (such as telephone and electricity bills).
- Disability/Pension/social security award letters, if applicable
- In the case of refinancing, current insurance policy and all deeds of the house.
If you have already chosen your home:
- Signed sales contract..
- Name, address and phone number of attorney.
- Check payable to the Latino Community Credit Union for upfront fees that cover the following:
- Property Appraisal
- Flood Certification
- Termite Inspection
What will I have to pay if I am approved for mortgage loan?
1. Origination fee (1% of the loan amount for fixed rate and 0.75% for variable rate loan)
2. Attorney fees (average $400-$750):
a) research the title for the property
b) acquire title insurance
c) record necessary documents
d) close the loan
e) handle disbursement of funds
3. Appraisal fees, to determine the estimated market value of property (average $200-$350)
4. Recording fees, to record the Deed of Trust with the county Register of Deeds ($60-$80)
5. Title insurance and insured closing protection, to insure against a defective title and deed and errors by the attorney. ($2-$2.50 per thousand dollars of the loan amount). It is collected at closing.
6. Survey, to verify the boundaries for a parcel of land (between $200-$300). You may be able to avoid the cost of a complete survey if you can locate the person who previously surveyed the property and request an updated survey. (Payable to the Attorney)
7. Termite report, to ensure there is no active infestation of termites or other destroying insects (from $60 to $100)
8. Flood insurance certification, to determine if the property is located in a special flood hazard area (up to $7). It is collected at the time of application.
Principal + interest + property taxes + homeowner's insurance.