Mortgage Center
Our experts will help you get the keys to a new home.
Welcome to the Community Powered Mortgage Center! Are you looking to buy a home? Are you looking to refinance your existing mortgage? Use our online tools to learn more about home loans and find the best options to suit your needs. You can explore our site without obligation or disclosure of personal information. When you’re ready, you can even begin the application process online!
- 100% Financing Available*
- No PMI Required*
- Fixed/Adjustable Rate Loans
- No Pre-Approval Fee
- No Application Fee
Call us at (302) 368-2396 to make an appointment with a loan officer, or get started with your application online and get one step closer to home today!
Please email or call us at (302) 368-2396 with any questions you have. We are here to offer personalized assistance throughout the home financing process.
FAQs
Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first-time buyers to purchase a home with a higher value. Give us a call and we can help you determine exactly how much you can afford.
With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with fixed-rate mortgages are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select the loan product is by talking to us.
An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).
There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Community Powered Federal Credit Union can help you evaluate your choices and make the most appropriate decision.
For most homeowners, the monthly mortgage payments include three separate parts:
- Principal: Repayment on the amount borrowed.
- Interest: Payment to the lender for the amount borrowed.
- Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
- Earnest Money: The deposit that is supplied when you make an offer on the house.
- Down Payment: A percentage of the cost of the home that is due at settlement.
- Closing Costs: Costs associated with processing paperwork to purchase or refinance a house.
Here are some helpful resources for mortgage information:
Mortgage Bankers Association of America Consumer Information
The Mortgage Bankers Association of America is the preeminent association representing the real estate finance industry. Its consumer information site contains several tools and guides to aid in purchasing or refinancing a home.
U.S. Department of Housing and Urban Development – Buying a Home
The U.S. Department of Housing and Urban Development website provides extensive information about buying a home, including affordability, borrower’s rights, tips and tricks for shopping for a loan, and details about different home buying programs including FHA loan programs and other special programs.
Federal Reserve Board Consumer Information
The Federal Reserve Board maintains a web page with consumer information, including a section on home mortgages. The section covers topics such as finding the best mortgage and understanding ARMs.
Homebuyer Education by Freddie Mac
Freddie Mac is a publicly held corporation chartered by Congress to increase the supply of funds that mortgage lenders, such as commercial banks, mortgage bankers, savings institutions, and credit unions, can make available to homebuyers and multifamily investors. This Freddie Mac site offers a step-by-step tutorial on the home buying decision process and the mortgage application process.
