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Types of Loans

Thirty-Year Fixed Rate Mortgage:
The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan. Other restrictions also apply.  Please request a consultation for more details.  All loans are subject to credit approval. 

Fifteen-Year Fixed Rate Mortgage:
This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate—and you'll own your home twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn't that great. We also have 20-year FIXED, 10-year FIXED and 5-year FIXED products available. Other restrictions also apply.  Please request a consultation for more details.  All loans are subject to credit approval. 

Hybrid ARM (3/1 ARM, 5/1 ARM, 7/1 ARM, 10/1 ARM):
These increasingly popular ARMS—also called 3/1, 5/1 7/1 or 10/1—can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a "5/1 loan" has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It's a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs. When it comes to ARMs there's a basic rule to remember...the longer you ask the lender to charge you a specific rate, the more expensive the loan. Other restrictions also apply.  Please request a consultation for more details.  All loans are subject to credit approval. 

Home Equity Loan (HEL) 5 - 10  or 15 Year Fixed Rate 2nd Mortgage:
The HEL loan has a constant interest rate and monthly payments that never changes.  You must have equity in your property to qualify  Home equity is the market value of a homeowner's unencumbered interest in their real property—that is, the sum of the home's fair market value and the outstanding balance of all liens on the property.To determine your equity, subtract the appraised value from any liens (loans) against your property.   Our product has no upfront costs or fees and has no pre-payment penalty if you pay off the loan before maturity.  The interest rate is based on the Wall Street Prime Rate plus a fixed margin. The maximum loan amount is $200,000 based on CLTV.  The maximum CLTV is 90% based on credit union guidelines.  Other restrictions also apply.  Please request a consultation for more details.  All loans are subject to credit approval. 

Home Equity Line of Credit:
This is a 25 year term usually in 2nd position for owner occupied single family homes, condominiums, or PUD's. The interest rate is based on the Wall Street Prime Rate plus a fixed margin. You will have a 10 year draw period and only required to pay interest only for that period. After the draw period, your remaining balance will be amortized for the remaining 15 years. Our product has no upfront costs or fees and has no pre-payment penalty if you close the line at any time. The HELOC promotional rate of 2.49% Annual Percentage Rate (APR) is for the first six months.  Rates after the promotional period will vary based on Wall Street Prime rate plus a margin of 1.00% to 2.00%, currently 5.25% to 6.25% APR.  The maximum loan amount is $200,000 based on CLTV.  The maximum CLTV is 90% based on credit union guidelines.  Other restrictions also apply.  Please request a consultation for more details.  All loans are subject to credit approval. 

FHA:
An FHA insured loan is a Federal Housing Administration mortgage insurance backed mortgage loan which is provided by a FHA-approved lender. FHA insured loans are a type of federal assistance and have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford. To obtain mortgage insurance from the Federal Housing Administration, an upfront mortgage insurance premium (UFMIP) equal to 1.75 percent of the base loan amount at closing is required, and is normally financed into the total loan amount by the lender and paid to FHA on the borrower's behalf. There is also a monthly mortgage insurance premium (MIP) which varies based on the amortization term and loan-to-value ratio. We also have FHA Streamline refinance programs available. Other restrictions also apply.  Please request a consultation for more details.  All loans are subject to credit approval. 

VA:
A VA loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA). The loan is issued by qualified lenders. The VA loan was designed to offer long-term financing to eligible American veterans or their surviving spouses (provided they do not remarry). The basic intention of the VA direct home loan program is to help veterans purchase properties with no down payment. The VA loan allows veterans 103.15 percent financing without private mortgage insurance or a 20 per cent second mortgage and up to $6,000 for energy efficient improvements. A VA funding fee of 0 to 3.15% of the loan amount is paid to the VA; this fee may also be financed. In a purchase, veterans may borrow up to 103.15% of the sales price or reasonable value of the home, whichever is less. Since there is no monthly PMI, more of the mortgage payment goes directly towards qualifying for the loan amount, allowing for larger loans with the same payment. In a refinance, where a new VA loan is created, veterans may borrow up to 90% of reasonable value, where allowed by state laws. In a refinance where the loan is a VA loan refinancing to VA loan (IRRRL Refinance), the veteran may borrow up to 100.5% of the total loan amount. The additional .5% is the funding fee for an VA Interest Rate Reduction Refinance. VA loans allow veterans to qualify for loan amounts larger than traditional Fannie Mae / conforming loans. VA will insure a mortgage where the monthly payment of the loan is up to 41% of the gross monthly income vs. 35% for a conforming loan assuming the veteran has no monthly bills. The maximum VA loan guarantee varies by county. As of 1 January 2012, the maximum VA loan amount with no down payment is usually $625,500, although this amount may rise to as much as $1,094,625 in certain specified "high-cost counties". VA also allows the seller to pay all of the veteran's closing costs as long as the costs do not exceed 6% of the sales price of the home. Other restrictions also apply.  Please request a consultation for more details.  All loans are subject to credit approval. 

 

WATER AND POWER COMMUNITY CREDIT UNION NMLS #254418
1053 WEST SUNSET BLVD., LOS ANGELES, CA  90012
Direct:  (213) 580-1775
Toll Free:  (800) 300-9728
realestate.lending@wpcu.org
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