Mortgages
DuTrac Community Credit Union is strongly committed to providing home financing options that are fast, convenient and of value to our members.
When you are buying a home, you are faced with a large number of choices including: rates, terms and options. DuTrac’s real estate lending staff provides sound advice and can help make your selection process easier.
Secondary Market Loans
Secondary market loans do not stay with DuTrac Community Credit Union. Instead, they are owned and serviced by an outside mortgage service company. We work as the “middle man” to help you acquire a home loan that fits your needs! These loans offer long-term financing at a fixed rate and are a popular option. DuTrac selects investors that assure very high levels of service to borrowers. DuTrac goes to lengths to make sure that loan servicing is retained by the investor and that borrowers are not continually sending payments to new payment centers. Regardless of the investor, we never sell you out. DuTrac will always be there and work on your behalf to resolve any issues with investors.
Fixed Rate Conventional Loan
A loan with a rate that is locked in, which means your Principal and Interest payment remains the same for the entire life of the loan. This is a terrific loan if you are planning on staying in your home long-term or if you are not comfortable with your interest rate eventually adjusting.
Adjustable Rate Mortgage (ARM) Loan
What is an ARM? “ARM” stands for Adjustable Rate Mortgage. With this type of loan, your rate is locked in for 3, 5, or 7 years and then adjusts once a year thereafter. Your rate can adjust up or down depending on the limits of your loans terms and the position of the market. These loans are great for buyers who want to lock in a low rate for a set number of years. A buyer may chose to refinance (pay off the existing loan with a new loan, especially if the interest rate is lower) at any time to a fixed rate.
FHA (Federal Housing Administration) Loans
This is a 15 or 30 year fixed rate loan insured by the Federal Housing Administration and is geared toward providing mortgages to home buyers with as little as 3 1/2% down payment.
“In-house” Mortgage Loans
An In-House Loan is a loan that remains with, and is serviced by, DuTrac Community Credit Union for the entire term of the loan. During the life of your loan, if you have questions, we are right here to assist you. These loans offer very attractive rates and payment options that are much more flexible and provide significant savings to the borrower. For example, if a borrower chooses to make payments bi-weekly, up to six years can be taken off the term of a thirty-year mortgage. Just think of the savings!
- Local, personal attention to any questions regarding your loan
- Flexible terms - can be amortized anywhere from 10 to 30 years
- Payments can be made weekly, bi-weekly (these two options are a fantastic way to pay off your loan faster, saving you money that would go to interest) or monthly – whatever best meets your needs
- No pre-payment penalties
Fixed Rate Conventional Loan
A loan with a rate that is locked in, which means your Principal and Interest payment remains the same for the entire life of the loan. This is a terrific loan if you are planning on staying in your home long-term or if you are not comfortable with your interest rate eventually adjusting.
3/1, 5/1, 7/1, ARM loan
What is an ARM? “ARM” stands for Adjustable Rate Mortgage. With this type of loan, your rate is locked in for 3, 5, or 7 years and then adjusts once a year thereafter. Your rate can adjust up or down depending on the limits of your loans terms and the position of the market. These loans are great for buyers who want to lock in a low rate for a set number of years. A buyer may choose to refinance (pay off the existing loan with a new loan, especially if the interest rate is lower) at any time to a fixed rate.
Construction Loans
Building a new home? This loan provides a great, money-saving convenience for you! By combining the construction loan with a long-term mortgage loan, you pay only one set of closing costs! Your home must be built within 6 months and you will only be charged interest during the construction period on the amount of money disbursed.
Lot Loans
A Lot Loan helps you purchase the land today that you intend to build a residence on in the future! Your Principle and interest payment are fixed for 3 years. At the end of 3 years the mortgage must be paid in full.
HLPR (Home Loan Payment Relief)
HLPR loan is designed for the first-time homebuyers. This loan restricted to an income that is at or below the area median income. This loan is a 3/1 ARM and generally the loan rate is priced at 1% below the national average for a similar loan. Only 3% down payment is required!
Loan Modification
A loan modification allows members, who already have an existing, owner-occupied First Mortgage with DuTrac Community Credit Union, to modify their fixed or adjustable rate mortgage to a lower rate with extremely reduced closing costs, saving them money now and in the future!
Rentals Loans
We have loans available for the purchase or refinance of a 1-4 family unit, rental property. A Rental Loan requires a 25% down payment and is typically amortized for 25 years with a 5 year balloon. Amortization means that you are paying your mortgage as if you were on a fixed 25 year mortgage, making your payments lower. However, after your 5 year term is up, you are required to pay off mortgage or refinance at that time.
Second/Vacation Home
This program is designed to allow members to purchase or refinance a vacation home or a second home within. The down payment required is as little as 20% with an amortization up to 30 years. The home must be a single family dwelling, including condos.
Fixed-Rate Mortgages
Fixed-rate mortgages offer three popular features: Fixed interest rates and a fixed monthly payment, and scheduled amortization. With a fixed-rate mortgage the loan will be fully paid off by the end of the term. Standard mortgages allow home owners to lock in interest rates for up to 30 years, although shorter terms are available.
Adjustable-Rate Mortgages
Adjustable-Rate Mortgages (ARM) are loans where the interest rate is tied to a specific index and can change every year…or every three, five or seven years with payments going up or down accordingly.
Refinancing
DuTrac can refinance your current loan. In the world of real estate, the rates and terms can change hourly. Refinancing your existing mortgage could make sense for a number of reasons:
- Takes advantage of a lower rate
- Reduces your monthly payment
- Consolidates your debt
- Takes advantage of a once in a life-time opportunity
- Helps a family member with educational expenses
As you can see, the reasons for refinancing your existing real estate mortgage can vary. Whatever your real estate needs, the DuTrac Community real estate lending staff are dedicated to getting DuTrac’s members into the homes of their dreams.
If you have further questions regarding DuTrac Community Credit Union’s Mortgage Loans, please contact our highly qualified real estate department by e-mail at realestate@dutrac.org, by phone at (563) 582-1331, or 1-800-475-1331 to schedule your appointment.
