There are a lot of different types of mortgages out there, all of which have their own pros and cons. Because you usually have to sign up for a mortgage for a very long time, it is important that you consider your different options first. One of those options is found in Florida mortgages from a credit union. You may just find that this is the perfect solution for you.
What Are Credit Union Mortgages?
There are little differences between credit union mortgages and regular mortgages in terms of how they work. The key differences, however, like in the interest rates and the terms and conditions. While the economic recession is now well and truly behind us, many people are still suffering the consequences of this recession, having a poor credit score. As a result, they look for bad credit mortgages, which are secured mortgages with very high interest rates. Furthermore, it is rare to get more than a 75% loan to value (LTV) mortgage if you have bad credit, which means you will need to save up thousands first.
A key problem with a bad credit mortgage is that they have very high interest rates. Usually, they are linked closely to the official market rate, and then increase from there depending on certain variables. Those include your employment history, your disposable income, and your credit history. You will never, however, get a good mortgage rate. That is, in essence, punishment for the poor financial situation you found yourself in, whether that is your fault or not.
So what about the credit union mortgage? Just as with other mortgages, rates can change since you have the choice of both variable and fixed interest rates. Fixed rates tend to be the most convenient one, but they are also often slightly higher. If you have a poor credit history, the variable rates tend to be the better option. Speak to a representative in the credit union to determine which of the two constructions is better for you.
You also have to look into the terms and conditions of your mortgage. One important one to look into is how long you have to repay the mortgage. It is common for this to be 30 to 40 years, although some people prefer a slightly longer mortgage, or even a shorter one. That said, mortgages between 30 and 40 years tend to be the ones that have the most affordable monthly installments.
Generally speaking, to obtain a credit union mortgage, you will have to be a member of that credit union. However, mortgage brokers do also deal with these mortgages and they will be able to advise you on what your options are. Overall, the rates offered by credit unions tend to be very good, particularly if you know who to speak for. In fact, even if you have a poor credit history you will be able to access these types of mortgages. That said, do speak to a good advisor, because the rules are usually slightly different if your credit history is not very good.