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Types of Loans

 

Several types of mortgage loan products are available and listed below. Once you review the types, ask us for more details, so we can determine which type of program would be the best option for you.

 

Fixed Rate Mortgage

A mortgage in which the interest rate is fixed for the term of the loan. Terms include 30, 20, 15 or 10 years.

Adjustable Rate Mortgage (ARM)

With an Adjustable Rate Mortgage (ARM), your initial interest rate is fixed for 5, 7, 10, or 15 years. After that time your rate could increase or decrease. ARMs usually offer a lower beginning rate compared to a traditional fixed rate mortgage.

Consider an adjustable rate mortgage if:

  • You plan to be in your home less than 15 years
  • You think rates will remain steady or decline during the initial term of the loan
  • You desire a lower monthly payment and are comfortable with a variable rate

Hybrid Adjustable Rate Mortgage

A mortgage in which the interest rate is fixed for a predetermined period of time, like three, five, seven or 10 years. After the predetermined period of time, the loan converts to an adjustable rate mortgage (ARM) for the remaining term of the loan.

Bi-Weekly Mortgage

Pay half the monthly amount every two weeks
•  Make 26 bi-weekly payments a year - 13 monthly payments instead of 12
•  The extra payment means you pay down your loan sooner
•  Build equity faster
•  Benefit from a discounted interest rate versus a standard monthly mortgage rate

Conventional Loan

Conventional loans are not insured by any government program, and they are the most common type of mortgage. Conforming conventional loans follow the loan amount guidelines set by Federal Housing Finance Agency (FHFA). Nonconforming loans don't meet those guidelines, but are still considered conventional. Conventional loans often have higher down payment requirements than government-sponsored loans like FHA and USDA.

FHA Loan

A loan insured by the Federal Housing Administration open to all qualified home purchasers. While there are limits to the size of FHA loans, they are generous enough to handle moderately-priced homes almost anywhere in the country. FHA loans offer a low down payment and more flexibility than many other types of financing.

VA Loan

Mortgage loans available to eligible US veterans. VA guaranteed loans are made by private lenders, such as banks or mortgage companies, for the purchase of a home for a buyer’s own personal occupancy. These loans offer competitive rates and require little or no down payment.

About

Founded in 1926 with less than $2,000, 35 members and clerks who donated their services in the interest of serving their neighbors, Metro Credit Union has grown into the largest state chartered credit union in Massachusetts. Metro is a not for profit financial cooperative which is owned by and operated for its members. In keeping with the credit union philosophy of "people helping people," Metro offers our members a wide range of low-cost financial products and exceptional service. ...

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Contact Us

- NMLS: 198524
200 Revere Beach Parkway
Chelsea, Massachusetts 02150
Phone: (877) 696-3876
Email: mortgage@MetroCU.org

 

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Metro Credit Union NMLS# 198524