A conventional loan at a fixed rate of interest is the first thing that pops into our minds when we think of buying a home. It was, for generations, the definition of mortgage. And even with the many options that are open to homebuyers now, it is still a great option.
A fixed-rate mortgage loan has the benefit of a stable interest rate, and a set term to pay off the loan. With a fixed-rate mortgage, you work directly with your lender to secure the best rate available, and to set the loan term that works for you.
InTouch offers our members excellent interest rates and loan terms that allow you to pay off your mortgage at your pace, whether that is 10, 15, 20, or 30 years.
There are options that allow a down payment of less than 20%, but private mortgage insurance (PMI) is usually required in these circumstances.
There are many factors that influence how much mortgage you can qualify for and what your monthly payment will be. Along with the interest rate and term, the down payment amount has the biggest impact on your mortgage payment amount.
Using our mortgage payment calculator, you can calculate an anticipated monthly payment based on different rates, terms and down payments. On a $250,000 mortgage, changing from a 20% down payment to a 10% down payment increases the monthly payment more than $200 on a 30-year mortgage at 3.50% APR (Annual Percentage Rate). That increase does not include any mortgage insurance payment which is often required on mortgages financed with less than a 20% down payment.
We want to be certain that our members have the best opportunity to make informed decisions and the Mortgage Lending Experts with ITCU are always available to guide you through the process.
As with all loans, credit and income requirements are part of the application process. Talk with an ITCU Mortgage Specialist today to discuss how pre-qualifying for a fixed-rate mortgage can make your homebuying process smoother and your bargaining position more robust.
If you are just beginning to explore fixed-rate mortgages at ITCU, take a look at the great interest rates we offer, and then contact us or use our handy online application to get the mortgage process rolling today.
*Mortgage loans not currently available in the following states: AZ, ID, HI, KS, ME, MN, MO, ND and NY.
**Not a complete list of available options. Click on Personal Rate Quote or speak to one of our mortgage professionals by clicking on Meet Our Loan Officers for more information. Conventional interest rates are based on the purchase of a single family primary residence in Texas for $500,000 with 20% down payment, a loan amount of $400,000, and a qualifying FICO score of 740 or above. Rates are indications only and are subject to change without notice. Rates quoted assume a 0.50% origination fee paid by borrower. Lower rate options may be available. The actual interest rates and fees available to you will be based on your actual credit history and other qualifying criteria and may be different than the rates, points, and fees displayed here. Your actual interest rate will be determined at the time an interest rate lock is completed. Equal housing lender. NMLS ID# 149532