Home Loans

Questions members frequently ask about mortgages

What is NuUnion's Mortgage Center?

Mortgage Center is a credit union service organization owned exclusively by NuUnion and four other credit unions. Our Mortgage Center offers a full range of mortgage options - purchasing, refinancing, new construction, land contract payoffs, and first time homebuyer programs. And because our Mortgage Center works with credit union members like you, you can expect friendly, professional service, competitive interest rates, and low closing costs.

How much of a home can I afford?

Your maximum mortgage amount is based on your credit, income, and expenses. There are two rules of thumb:

  • No more than 28% of your total monthly gross income should go toward house payments, including 1/12th of your yearly property tax and homeowners insurance
  • No more than 36% of your total gross income should be needed to pay all your mortgage, loan, and credit card payments

These percentages may vary based upon individual circumstances. If you have a higher down payment or high deposit balances, you might be able to borrow more than is typical. An easy way to be sure about what you can afford is to get pre-approved for your mortgage. Just call our Mortgage Center at 888.562.6865.

How much does it cost to apply for a mortgage?

Members can get pre-approved with no up-front costs. Mortgage Center collects $350 for a credit report and an appraisal when you find a house.

Can I pay my own taxes?

While most NuUnion members include the cost of property taxes and homeowners insurance in their monthly payments, you may qualify to pay your own taxes and insurance. Talk about it with your mortgage representative when you apply.

What is a Fixed Rate Mortgage?

There's comfort and security in our fixed rate mortgage because the payment and the interest rate stay the same throughout the entire loan. Our 30-year fixed rate loans are very affordable and a good choice if you plan to remain in your home for many years. Shorter term loans, like our 15-year fixed rate mortgage, build equity faster and save interest expense.

What is a Balloon Mortgage?

If you don't plan on being in your home for many years, a balloon mortgage may be right for you. It's usually short, with a term of five to seven years, but the payment is based on a term of 30 years. And they often have a lower interest rate. At the end of your loan term, you'll need to pay off your outstanding balance. This usually means you must refinance, sell your home, or convert the balloon mortgage to a traditional mortgage at the current interest rate.

What is an Adjustable Rate Mortgage?

With an adjustable-rate mortgage (ARM), the interest rate you pay is adjusted periodically to keep it in line with the changing market rates. ARMs are attractive because they may initially offer a lower interest rate than fixed rate mortgages. The drawback is that your monthly payments may increase when interest rates rise.