Home Mortgage

The home buy process, including taking out a mortgage, can seem extremely stressful and overwhelming if you do not have anyone to sit down and explain all of your options. At the Philadelphia Letter Carriers FCU we are here to help letter carriers and their families get approved for a mortgage and moved into your dream home quickly and easily, without any added stress. A home mortgage loan is used to purchase real estate property and is funded by banks, lenders and credit unions. While there are dozens of types of loans out there, the Philadelphia FCU conveniently offers FHA Loans, Fixed Rate Mortgages and Adjustable Rate Mortgages.

FHA Loans:
FHA loans have become much more popular among borrowers, because of the less rigorous lending standards and lower down-payment requirements. An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. This type of home loan requires you (the borrower) to pay for mortgage insurance, which protects the lender. To qualify for an FHA loan, the minimum credit score is 500 with only 10%-3.5% down, making an FHA home mortgage a much more affordable and easily obtainable lending option.

Fixed Rate Mortgages:
The most common type of home mortgage is a fixed rate mortgage loan. In the simplest form, this means the interest rate remains the same for the life of the loan. Unlike many other loan types, fixed rate mortgage interest payments and loan durations are static from beginning to end. A fixed-rate mortgage is a popular option for homeowners who need or prefer a stable, budget-friendly monthly payment.

Adjustable Rate Mortgages:
Borrowers who feel comfortable with floating interest rate amounts may prefer an adjustable rate mortgage, as it is a fixed and variable rate hybrid. This type of loan is issued as and required to be a “fixed rate” with steady installment payments over the first few years, followed by variable rate interest after that. Adjustable rate mortgages are also issued with generally lower interest rates than comparable fixed rate mortgages. In an adjustable rate mortgage, the borrower is taking a risk and betting on rates, and therefore mortgage payments, decreasing in the future.

Home Mortgage Application Process:
The Philadelphia Letter Carries FCU is an equal housing lender and offers the above home mortgages to our members. The application process is simple and there is no fee to apply. For your convenience, we have a larger credit union handle the applications to keep up with constantly changing government regulations. Call our Philadelphia location for any questions and to begin the application process today.

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