Residential Mortgages

Frequently Asked Questions

Because of the different amortization (payment) schedules, the 15- year mortgage is superior to the 30-year mortgage. The principle and interest payments are approximately 25 percent higher on the 15 year mortgage, but if you can financially commit to the 15-year payment, you will be happy in fifteen years to have your mortgage completely paid off. If you feel uncomfortable with the higher payment, you can make an additional payment per year on the 30-year mortgage and gain a similar benefit.

Shoud I choose automatic payment deducton?

We strongly recommend that you utilize the benefits of the automatic payment deduction. You save yourself from the added time and inconvenience of writing a check and mailing it in each month. As a credit union member, there is no additional charge for deducting the payment each month from your account.

What is jumbo loan?

Jumbo loans are mortgages that exceed the maximum loan amount establish by the Federal National Mortgage Association (FNMA) and Freddie Mac . Currently any loan over $322,700 for a single-family residence is considered a jumbo. Jumbo loans may go up to as high as $2 million. Austin Metropolitan Financial Credit Union specializes in quality jumbo loans and will give you an exceptionally competitive rate.

How long does it take to get a loan?

We will provide you with an approval from Fannie Mae within 24 hours of receiving your completed application. Please note this is NOT just a prequalification based on the opinion of a loan officer, but an actual approval.

How much do I have to pay in out-of-pocket expenses to apply for a mortgage loan?

We require out-of-pocket expenses for the credit report ($65) and the appraisal (varies - approximately $350) for a total of $415. Charges will be shown as paid at the time of closing.

What are points?

A point is one percent of the principal amount of the outstanding mortgage balance at the time when you take out the loan. If you get a $100,000 loan, one point is going to be $1000.

How does my business income figure in when I am applying for a loan?

If you are self-employed you need to submit both personal and business tax returns for the past two years. We will also need to get two credit reports: a personal one and one for your business.

I have some credit problems. Is it still possible to get a loan?

Austin Metropolitan Financial Credit Union can provide you with mortgages even if you have had credit problems in the past. The interest rates vary depending on the extent and seriousness of the problem. (email us with particulars).

I've only had my job for eight months; is that a problem?

Generally a 24-month consecutive employment history is required. However, depending on your circumstances, your employment income may still be acceptable (i.e. recent college graduate, or job/career change with proper explanations.)

How do I know if I need mortgage insurance?

Mortgage insurance is required if the cash downpayment does not equal a minimum of 20% of the loan amount. Additionally, we can provide credit union members a unique way to work around the above stated mortgage insurance requirement. Send email for details.