All of NGFCU's Home Loans can be used to finance home purchase or refinance transactions.
Thirty-Year Fixed Rate Mortgage
Available as a conforming or jumbo Loan
The 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.
Fifteen-Year & Twenty-year Fixed Rate Mortgages
15-year is available as a conforming or jumbo loan. 20-year is available as a conforming loan only.
These loans are fully amortized over a 15-year and 20-year period and feature constant monthly payments. They offer all the advantages of the 30-year loan, plus a lower interest rate—and you'll own your home sooner. The disadvantage is that, with these shorter term loans, 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 within a shorter period. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn't that great.
Hybrid ARM (3/1 ARM, 5/1 ARM, 7/1 ARM)
All Hybrid ARMs are available as conforming or jumbo loans.
These increasingly popular ARMS — also called 3/1, 5/1 or 7/1 — 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.