A mortgage is a loan to finance the purchase of your home. A mortgage loan may also be used in the refinance of an existing home (mortgage) loan.

The home you purchase acts as the collateral for the loan, which is a legal contract you sign to promise that you'll pay the debt, with interest and other costs. The typical term for a mortgage loan is between 15 and 30 years.

To repay the debt, you make monthly installments or payments that typically include (PITI):

• Principal
• Interest
• Taxes
• Insurance 

Leaders Credit Union offers mortgage loans at affordable rates.

The specific amount of your closing costs will be based on your loan amount and other factors. Here are the fees that are included in your closing costs:

• Third-party fees, including the appraisal fee, credit report fee, settlement/closing fee, survey fee, tax service fee, title insurance fee, flood certification fee, property insurance premium, and courier/mailing fee. Where applicable, these are fees that Leaders will collect and pass on to the party who performed the service.
• Property taxes and other unavoidable costs, including your state/local property taxes and recording fees.
• Lender fees, including mortgage points (if applicable), document preparation fees, and loan processing fees.

It may be possible to roll closing costs into your loan, depending upon the amount you are borrowing, the value of the property, and the type of loan. There are pros and cons to financing your closing costs. You’ll save money up front but your monthly payment will be higher than it would if you paid the closing costs. Our Mortgage Champions are happy to review your options with you when the time comes.

No, but we do offer flexible loan-to-value ratios starting as high as 97%. We understand that some buyers may not have enough to make a large down payment and it’s our job to match you with the loan that suits your needs.

Mortgage insurance is insurance that protects the lender in the event you default on your loan. Certain lending programs, such as the FHA’s program, require mortgage insurance. Many lenders require private mortgage insurance (PMI) for loans where the down payment is less than 20%. Leaders Credit Union offers some home loans that do not require mortgage insurance.

Mortgage points offer home buyers the option to trade an up-front payment to reduce the interest rate for their mortgage. The cost of points is added to your closing costs. The benefit of buying points if you can afford it is that you will save money over the term of your mortgage thanks to a reduction in your interest rate.