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A home is the most expensive object you will ever buy. Why would you trust your mortgage needs to a financial institution that doesn't know you or take your needs and abilities into account? To some financial institutions, you're just a credit score. To membersTrust Credit Union, you're more than that. We offer first mortgages through our valued partner Member Options, and we offer second mortgages for your home when you need to use the equity in your home for a purchase or home improvements.
If you are interested in a first mortgage, please continue to our Member Options partner by clicking on the link.
membersTrust Credit Union offers a second mortgage program in-house to provide you with quick answers to your application. A more difficult question for members to answer is which is right for you. Here is a brief description of what second mortgages we offer. Should you have any further questions please don't hesitate to call our offices at 757.671.8800.
Which second mortgage type is right for you?
Typically, there are two popular options: a second mortgage (often called a home equity loan) or a home equity line of credit (HELOC).
What are the differences?
Second Mortgage Loan: this loan is a fixed rate loan, financed for a specific period of time, called a term. This type of loan is a one-time lump sum, which is paid off over a set amount of time.
Home Equity Line of Credit: This is a loan secured by your property just as the "traditional" second mortgage, but, unlike the one described, it works more like a credit card. Often these loans have a variable rate, meaning the rates can change as the prime rate changes. Members are allowed to borrow up to a certain amount for the specified time of the loan, which is a time set by the lender. During the time specified, you can withdraw money as you need it. As you pay off the principal, your credit revolves and you are able to use it again. This method often gives borrowers more flexibility than a fixed rate home equity product, but is often the best choice when working with smaller amounts of money and several projects, which may be done at different times. This product also has a variable rate, which means that the rate does not stay constant, but can change as the prime rate changes.
Which type you should choose is often more complicated.
A rule of thumb is this--if you need an exact amount fairly quickly, and you don't have plans to borrow again in the near future, a "traditional" second mortgage may be more suited to your needs.
However if you need money over a staggered period of time, a HELOC may be a better choice. To help you determine which best suits your needs ask yourself these questions:
- When do I need the money?
- How long do I need it? Short term or long term?
- How long do I need to pay it off?
- How much of a payment can I handle?
Which type of mortgage loan will suit your needs?
It's very important to explore your options with your financial institution, or lender. Usually, they can explain to you which best helps you and your lifestyle. Need help deciding? Call our second mortgage specialist at 757.671-8800.
What do I need to bring to the credit union if I decide to get a mortgage loan?
After you turn in your loan application and schedule your appointment, you need to bring the following:
A copy of your recorded deed
Your latest city tax assessment
Statement of first mortgage balance
Copy of homeowners insurance policy
Verification of all pay
Processing time more most mortgages is normally 2 weeks from day of application.
Are there fees?
The fees below may apply to your loan
Appraisal: $200.00 (if required, payable directly to appraiser)
Attorney: $200.00 to $300.00 based on amount of loan
Recording Fees:
State tax: .15 per $100.00
City Tax: .05 per $100.00
Clerk Fee: may apply
Title insurance: Based on amount of loan and only if required.
