Mortgage Products Available through CU Mortgage Services, Inc.

Fixed Rate  
Over 80% of loans closed are fixed rate mortgages. Available on 40, 30, 20, 15, and 10-year amortizations. Interest rate on the loan is fixed for the entire length of the loan. Lock-in periods available at no cost are 30 and  60 days. Lock-ins beyond 60 days range in cost depending on length needed. Typically, but not always, a borrower can obtain a better rate the closer they are to closing. Rate and buy-downs are available by paying points (1 point is 1% of the loan amount; points vary daily and by amortization. Down payment requirement depends on loan type, i.e. conventional, FHA, VA, etc.).

First-time home buyers options:
- MyCommunityMortgage™
An affordable, flexible mortgage program for low-to-moderate income borrowers. Offered by CU Mortgage through Fannie Mae, this loan program does not require members to have a down payment with 100% LTV (for a single unit property) and gives our lenders the ability to approve more borrowers with limited funds. 
• No minimum borrower contribution for single unit
• Up to 100% loan-to-value (LTV) ratio
• Flexible on credit histories, non-traditional credit accepted
• Income source flexibilities including boarder income from relatives/non-relatives
• Up to 40-year fixed rate term available and option for initial interest-only period 

- 103% LTV Flex Plus
• Amortization types: 30-year fixed rate mortgage and 5/1 ARM
• Allows borrowers to obtain a no money down loan by rolling in closing costs and prepaids up to 103% loan-to-value
• Borrowers don’t need cash for closing costs = no money needed for a downpayment
• Eliminates the need for third-party contributions (seller contributions)
• Borrowers must be at or below 100% of area median income
• Eligible property types: one-unit single family, condos, PUDS (manufactured housing and co-ops are not eligible) 

7 Year Balloon 
Available on conventional loans only. Loan is fixed at rate offered for a 7-year period, but the loan is due in full at the end of this time frame. This rate is generally .5% lower than the going 30-year fixed rate. 30, 60 and extended lock options available. Minimum down payment is 10% of purchase price.

Conventional 1-Year ARM 
The rate on this type of mortgage adjusts on an annual basis. The rate is artificially low the first year. Most conventional 1 - Year ARMs have 2/6  adjustment caps (meaning 2% annual change and 6% maximum lifetime change). Commonly the adjustment is based upon the 1 - Year Treasury Index plus a margin of 2.75.

Fixed Period ARMs 
Available on conventional loans only. These loans are fixed for either the first 3, 5, 7 or 10 years. At the end of this term, the loan then changes to a 1 - Year ARM. The loan is then adjusted according to the terms of the individual ARM. Most of these loans are based upon the 1 - Year Treasury Index with margins of 2.75. Adjustment caps vary, but are typically 2/5. 7/1 and 10/1 terms allow for a 5% initial adjustment once the fixed rate period ends. These loans also typically have a conversion option available in year 1 - 5. Minimum down payment is 10%.

Interest-OnlyMortgages
An interest-only mortgage allows you to make interest-only payments for an initial period of time. After that period, the loan converts to a fully-amortizing loan for the remainder of the term.

Loan product      Interest-only period      Amortization
10/20 fixed            10 years                         30 years
15/15 fixed            15 years                         30 years
3/1 ARM                 3 years                         30 years
5/1 ARM                 5 years                         30 years
7/1 ARM                 7 years                         30 years
10/1 ARM             10 years                          30 years

This may be a good choice if you:
   • Want to maximize your buying power
   • Want to keep payments lower during the first few years of the loan
   • Plan to move into a different home within a relatively short period of time  
   • Plan to pay off your mortgage within a relatively short period of time  
   • If, in coming years, you expect to increase your income significantly

No Closing Cost Option: contact a CU Mortgage Loan Officer for details at 651-631-3111.