Learn the BasicsAbout Mortgage Loans
There are several types of mortgage loans. Let’s talk about the 30-year, fixed rate loan.
You will be required to have repaid your loan 30 years from the time you take it. The total amount of your loan will be divided into monthly payments over 360 months (that's 30 years). Your loan will be assigned a fixed premium, the amount you pay back each month. This is your monthly bill for the loan. In it is included the total value of the loan itself plus an added percentage which is how you pay for the service of having the money in hand before you earn it.
It's called a “Fixed Rate Loan” because your premium is guaranteed to remain the same for the duration of your mortgage period. For example, if you pay $900 a month at the start of your mortgage period, you will pay that same amount 29 years later. It's a great package since it helps protect first-time buyers from being hit hard by inflation in their retirement years.
Our local mortgage loan officers will work with you to understand the needs and goals you may have related to your home ownership experience. We offer many different products and once the loan officer learns more about your financial needs, they will recommend the home product that best suits your needs.
The most important difference between an ordinary loan and a mortgage is the amount of money being lent and the amount of time you have to repay it. Because of the nature of buying a home, borrowers tend to need more money than someone starting a small business or buying a car for work.
The Nature of Mortgage Loans is Different
What's more, your home is not a money-making asset. It provides you with shelter and security, but it's not something you expect to make money on unless you're going to make major renovations and resell it. For these reasons, it only makes sense that the premiums on a mortgage should be less than those for other types of loans, and the qualifications also tend to be a bit more involved.
Secured vs Unsecured
Ordinary loans can be either secured or unsecured. A secured loan is backed up by some form of collateral. Mortgages are always backed up by collateral in the form of the home being purchased.
If you're looking to buy your first home in Vermont, let the home finance professionals at NEFCU help you find the best type of home loan for your needs. Our team will consult with you to help find the best fit. Get in touch today.
First question: Is buying a home the right move for you? Home ownership is great for some people, while being a renter works perfectly for others.
There are many factors to consider when deciding if buying a home is right for you. Listed below are some advantages and disadvantages of renting versus owning.
Providing thorough documentation to your lender is helpful in making the loan process move quickly and smoothly to approval. We’ll give you a checklist so that you can get a head start.
Apply online to get started. Then a NEFCU mortgage loan officer will help you move through the process— from application, approval, processing, to closing. We’ll guide you the entire way!
We can help you make sense of your credit report and credit score. Let’s review everything together and we’ll explain how your credit history influences your financing options.
The cost of buying a home can be overwhelming. Minimum down payment requirements can range from 0–20% depending on credit score, type of property and loan program. Typically it is best to plan for a having a minimum 3–5% down payment plus closing costs before getting pre-approved.
*Certain restrictions apply to gifts from relatives. Your loan officer will share the details with you.
The Consumer Finance Protection Bureau (“CFPB”) requires that loan servicers adhere to an established process for addressing Notices of Errors from Members as well as Information Requests from members as they pertain to loans. In order to submit a formal Notice of Error or an Information Request please send a written request to the following address: New England Federal Credit Union, Attn: Loan Servicing, PO Box 527, 141 Harvest Lane, Williston, VT 05495
Please include in the written request a detailed explanation of the error or the information you are requesting. Be as specific as possible and provide any information that you believe may be helpful. Also note that correspondence written on a billing statement will not be considered a formal request.
NEFCU will respond to your written request within five (5) business days to acknowledge your request and if possible to satisfy it. If we are unable to resolve the notice of error or information request at that time, we will acknowledge that fact and shall respond to you within thirty (30) business days provided that you provide any additional information requested that may be necessary.