Mortgages

For more information about first time mortgages, see our Helpful information for first time mortgages.

Purchasing a new mortgage is an important step in your life and should be handled by people who care about you. North Central Area Credit is your home town credit union and we care about you and your family. We offer you personal member services with competitive rates, low fees and a fast turnaround.

Now it is easier then ever to apply for a new mortgage. Our members can apply in person at any branch location or by mail.

NCACU also offers fixed and adjustable rate mortgages, home equities, balloon mortgages and land loans. We have some advantages since we are your local credit union. Besides great personal service we have�.

• Convenient payment options like automatic withdrawals.
• Pre-qualification for purchases.
• Easy application process including on-line processing.
• One stop financial service for all your needs.
• Competitive rates and low fees.

For more information, email, stop by or call one of our Member Service Representatives today!

• 10 Biggest Home Buying Mistakes
• Ask Yourself Some Questions
• Check-out The Neighborhood
• Glossary
• Investing In a Home
• Last Minute Tips Before You Buy That Home
• Make Home Buying Easier
• Buyer Wants To Move In Early
• Why Pay Rent When You Can Own

We have provided you with this convenient mortgage calculator to help you determine your total monthly payments.

Balloon Mortgage

A balloon mortgage can be an excellent option for many home buyers. A balloon mortgage is usually rather short, with a term of five to seven years, but the payment is based on a term of 30 years. They often have a lower interest rate, and can be easier to qualify for than a traditional 30 year fixed mortgage.

Construction

A construction loan is for a 6 month period. The interest only payment is raised on the current funds advanced during the construction phase. Upon completion of the home the construction mortgage is paid off with a conventional mortgage.

Fixed and Adjustable Rates Mortgages

With a fixed rate mortgage (FRM), your monthly payments will be steady. In contrast, with an adjustable rate mortgage (ARM), your payments will vary over time. Adjustable rate mortgages typically have an initial fixed rate lower than the rate of a comparable fixed rate mortgage. The initial fixed rate period is followed by adjustment intervals. For example, a "3/1 ARM" is fixed at an initial low rate for the first 3 years, and then adjusts every year based on an index.

Home Equities

Need some cash? Use your home's equity now to take advantage of historically low interest rates! Get a line of credit secured by the equity in your home. It is an excellent plan when you simply want the money to be there in case you need it. Since this is a revolving line of credit, as you pay back what you borrow, the money is yours to use over and over again. Home Equity rates are determined by combined Loan-to-Value ratios.
*You can benefit from the home equity tax advantages that are realized in most cases up to 100%.

Explore the flexibility of home equity lines of credit, or lock into the stability of fixed home equity loans.

Land Loans

Land loans are riskier for lenders because the loan's collateral, the property, isn't currently being used. That makes it easier for the owner to walk away and leave the lender with the land. Because of that, down payments and interest rates are higher for land loans than they are for mortgage loans.

What type of loan depends a lot on the property, what you plan on doing with it, and when you plan to have the work completed.

Unimproved land, or raw land, with no plans for improvement is the hardest type of property to secure a loan on because it is in essence a speculative investment. Raw land has no added improvements like sewers, utilities, streets or structures.

When purchasing the property, insist on a warranty deed and title insurance to make sure you'll have clear title to the property.

Improved property, zoned for your intended use, will be easier to get a loan for than unimproved property. Buying land with immediate plans for construction is the easiest type of land loan to secure because the lender will be paid off when you get a mortgage on the structure.

A home equity loan, or refinancing your current mortgage with cash out to purchase the land, may meet your needs better than a land loan. Since your current home secures the home equity loan, there's less risk to the lender. That should mean a lower interest rate.

Land loans have a maximum of a 15 year amortization with a 5 year balloon note due & payable at the end of 5 years. The interest on your home equity or mortgage loan may generate a tax deduction on your income taxes.

The interest expense on a land loan may be tax deductible if the land is held as an investment. Read Bank rate's tax adviser George Saenz's discussion of this topic and consult with your tax adviser if you plan to take this interest deduction.

You'll find some of the lowest mortgage rates and best terms at North Central Area Credit Union. Don't let the rates be your only criteria for choosing a lender. Mortgages, with the same nominal interest rate, can end up costing different amounts because of additional cost such as origination and application fees. Consider the different rates lenders offer, but you also want a lender you can trust and someone you can work with effectively that cares about you.

The best way to make the application process easier and faster is to be prepared for it. You can get pre-approved for any of our mortgage loans. At NCACU, you shop as a cash buyer which gives you a significant advantage. Now it is easier than ever to apply for a mortgage. Our members can apply in person, by phone, by mail, or online. Call 800-732-6005 x5240 for more information.

What is needed when you apply:

• A copy of your current mortgage, warranty deed, or purchase agreement
• Your current pay stub showing year-to date income
• Most current year W-2
• Current bank statement
• A current homeowner's insurance policy
• A current receipt for property tax
• If self-employed, the last 2 years of federal income tax returns

For more information, download the Mortgages Brochure, email, stop by or call one of our Member Service Representatives today!