Financial Terms You May Want To Know While Thinking of a Home Loan!

Whether you’re a first-time buyer or an experienced house flipper, you may have questions about home loans.

Getting a home loan through a credit union, such as Aspire Credit Union may be preferable to getting one from a commercial bank.

• Easier Loan Approvals
• Lower Fees
• Lower Interest Rates
• Flexible Lending
• Community Feel

We are here today to improve the financial literacy of our members – especially those seeking an Aspire home loans.

EARNEST DEPOSIT

A deposit made to a seller represents a buyer’s good faith to buy a home. The money gives the buyer extra time to get financing and conduct the title search, property appraisal, and inspections before closing. In most cases, the earnest money is delivered when the sales contract or purchase agreement is signed, but it can also be attached to the offer.

TITLE INSURANCE

It protects you from problems with an ownership title when you buy real estate. Title companies search for problems with the title that need to be corrected before you buy the property. If there is a challenge to your ownership later, your title company will handle the dispute. This is not to be mistaken for homeowner insurance.

BALLOON

Aspire mortgage product is a traditional conventional loan, with a 6-year Balloon. A Balloon loan is a unique purchasing method offering its borrowers a lower than the market rate for the first six years. After that term, our mortgage team, will pull your current credit and modify your mortgage terms according to our current rates. (Set by our Board of Directors.) Increases in your rate have a maximum increase of 1.5% each six-year term.  Your rate may go up but the benefit of a Balloon Mortgage may also go down reflecting current market rates.

REAL ESTATE TRANSFER TAX

Sometimes called a deed transfer tax, it’s a one-time tax or fee imposed by a state or local jurisdiction upon the transfer of real property.

HOME MORTGAGE REFINANCING

Refinancing refers to the attainment of a new Aspire Credit Union home loan to take the place of an older one that may be at another financial institution. Refinancing is classified as “rate and term” or “cash-out.” There are many reasons people opt for a refinance – lower interest rate or shorter time frame. A refinance, can also mean taking out equity on a home that has already been paid off for a home project, or debt consolidation. This may often be mistaken as a HELOC, but please call our office to determine which option is best for you.

HELOC

Home equity lines of credit (HELOC) allow you to borrow money using the equity or value of your home as collateral. HELOC rates tend to be higher  than a traditional market rate, however it maybe a better alternative to a credit card or personal loan, and interest paid may be tax deductible. It’s a great fit for expanding your budget and maximizing your options.

Aspire Credit Union offers great rates with fabulous local service. Two of our unique benefits is only requiring 10%* down for those individuals who qualify and we are an equal housing lender, federally insured by NCUA.

Want more information about an Aspire home loans? Visit our website to contact an expert today.

**10% down and Annual Percentage Rate (APR) are subject to credit approval and analysis. Not all members will qualify for the 10% mortgage down payment offer. Repayment terms can be amortized over a 30-year mortgage or less, or in the form of a 72-month balloon payment.