A traditional fixed rate mortgage has a fixed rate throughout the entire term of the loan.  The payment never changes. Many people are comfortable with this loan because it offers a certain feeling of security.  A fixed rate mortgage may be right for you if you plan to keep your home - and your home loan - for a long period of time. Traditionally the most popular fixed rate terms are for either 15 years or 30 years. However, you may now obtain any of the following fixed rate terms, depending on the amount of monthly payment you want to make. Pricing varies, and the longer the term, the lower your payment:
 10 year, 15 year, 20 year, 25 year, 30 year and 40 year terms are available.
 Don’t see what you are looking for? Call your SDFFCU loan representative to get a custom loan made just for you.

  The adjustable rate mortgage (or ARM) can increase or decrease over the life of the loan, based on a pre-determined “index”. Most often these loans are priced lower than a 30 year fixed rate loan. Typically, the initial interest rate is fixed for a period of time, for the first 1, 3, 5, 7, or 10 years of the loan. The rate will then adjust to whatever the current interest rate is at the time of the adjustment. For instance, a 10/1 ARM is fixed for 10 years, then adjusts each year thereafter until the loan is paid..
 ARMs are sometimes popular among home borrowers who want a lower interest rate and payment for the first few years of the loan. That’s the primary appeal. The usual strategy is to sell the home prior to the adjustment.
 If you are considering an ARM, pay attention to the fixed rate portion of the loan. Ask about the caps. Rate caps limit how high an interest rate can increase at adjustment. Some ARMs have periodic caps and lifetime caps. Periodic caps limit the increase from one adjustment period to the next. Lifetime caps limit the overall interest rate increase over the term of the loan. Limits of 2 percentage point per year and 6 percentage points over the life of the loan are typical.  These are important factors to investigate when shopping for an ARM. Ask your SDFFCU loan officer to show you an amortization schedule to compare how the different factors may affect your home loan.

  An interest-only mortgage allows the borrower to pay only interest on the loan for a set period of time –offering a lower initial payment.  A five or ten year interest -only period is typical. After this time the principal balance is amortized for the remaining term. This gives the borrower greater flexibility and more options.
 This loan has been popular with borrowers who need lower payments at the beginning of the loan, but will be able to make higher payments later. Perhaps there is a major salary increase in the near future, or you may be receiving a large lump sum of cash. With the interest-only “option” the borrower may make principal payments as they wish to, or they may make the interest-only payments at their option.  It should be noted that if you choose to make the minimum interest-only payment over any extended period, you will not build equity. The interest-only option may be best for a very specific need or on a short term basis.
 The interest-only loan is now available in a variety of either fixed or adjustable rate with terms up to 40 years.

  SDFFCU offers a wide range of products and pricing for your rental property. Fixed and adjustable rates are available. Get best rate and terms with your SDFFCU investment property loan. Please call us for a quote at 619-283-7026. Ask for a real estate loan officer.
 Do you have an out of state rental property? No problem. In most cases SDFFCU can provide financing on your property outside of California. Ask you SDFFCU loan officer for assistance.

  SDFFCU offers fixed and adjustable rate loans for your vacation home. These loans are usually priced at the same rate and terms as the financing available for your principal residence. And SDFFCU may provide financing even if your property is located outside of California. Please ask your SDFFCU loan officer for assistance and a price quote

  A home equity line of credit is a form of revolving credit in which your home serves as collateral. Because the home is likely to be your largest asset, many homeowners use their credit lines only for major items such as education, home improvements, or medical bills and not for day-to-day expenses.
With a home equity line, you will be approved** for a specific amount of credit--your credit limit, the maximum amount you may borrow at any one time under the plan. Once approved for a home equity line of credit, you may borrow up to your credit limit whenever you want, for the first ten years of the loan.
 

Loan Limit	$250,000
Initial Rate	4.99% apr*
15 Year Term	80% LTV

    * This is the initial rate-subject to change without notice. HELOC ARM adjustments are based on the Prime  Rate plus a 0.75% margin.   The loan is subject to an annual interest rate adjustment each July 1st, with a maximum adjustment cap of 2% per year, and a lifetime cap of 6% over the start rate. All rates and terms are subject to change without notice.
** On approved credit. Certain restrictions apply.
   

Payment Comparison Chart

Loan Limit	$250,000	$250,000
Fixed rate at	6.99% apr*	7.25% apr*
Term	15 Year	20 Year
Payment	$2245	$1975

* This is the initial rate-subject to change without notice. HELOC ARM adjustments are based on the Prime  Rate plus a 0.75% margin.   The loan is subject to an annual interest rate adjustment each July 1st, with a maximum adjustment cap of 2% per year, and a lifetime cap of 6% over the start rate. All rates and terms are subject to change without notice.
** On approved credit. Certain restrictions apply.