Frequently Asked Questions

Frequently Asked Questions

What types of mortgages are available?

I’m interested in buying a home - where do I start?

What about refinancing?

How can I find a New York credit union to join?

What types of mortgages are available?

You want a mortgage that's right for you. If you’re planning on keeping the house for only two or three years, for example, lower closing costs and whether or not there’s a prepayment penalty for paying off the loan early could be paramount. There are many factors which will influence your decision about what type of mortgage loan is right for you.

If you want your monthly principal and interest payment to remain the same for the life of the loan, and are planning to stay in the house for a while then, a fixed-rate mortgage is right for you. Adjustable-rate mortgages usually offer a lower initial interest rate, which means lower initial monthly payments (and you may qualify for a larger mortgage); this is appealing for the short-term homebuyer. Remember, though, that once the rate becomes "full," it may be more than you’d bargained for.

Interest rates change often, and vary by type of loan. Even a fraction of a percent difference in an interest rate can have a significant impact on the amount of your loan. The factors to consider:

(A Glossary of terms is available for your convenience.)

Fixed-rate or adjustable mortgages

Interest rates

Points

Annual percentage rate (APR)

Loan term

Down payment requirement

Private mortgage insurance (PMI)

Rate lock-in

Prepayment penalty

Escrow requirement

Closing costs

Payment schedule

Initial interest rates

Adjustment interval

Interest rate caps

Payment caps

Convertibility

I’m interested in buying a home - where do I start?

Owning a home ... it's an American dream, but to make it come true you need information and planning. Most people take out a loan or mortgage. Even if this is an unfamiliar process to you, we can help - use the calculators we’ve provided to help you estimate mortgage payments, analyze your current expenses, and so on – in short, to find out if you’re ready to buy a home and how much you can afford to spend. Also, use the glossary to help you understand terms and concepts. You can even pre-qualify yourself. Get stuck? We’re always happy to help and to answer your questions – just contact us.

What about refinancing?

If interest rates have decreased, you may want to consider refinancing your mortgage to reduce your monthly payment or the term of the loan. Because there are costs involved, refinancing is an attractive option if you don’t plan to sell your house for at least a couple of years, and the rates are at least 2 percent lower than the rate you’re currently paying.

CUC Mortgage Corporation is a Licensed Mortgage Banker with the
NY, NJ, CT, NH and VT State Banking Departments.

CUC Mortgage is an affiliate of the New York State Credit Union League, Inc. & Affiliates

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