Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Why Choose A Credit Union For Home Loans

There are various benefits associated with a credit union membership and one of them is the ease to get home loans. However to understand the process you should be familiar with the working of a credit union.

What is credit union?

Credit unions are financial institutions that offer checking and saving accounts, receive deposits, and offer credit for a wide range of needs such as home loans, auto loans, etc. However, unlike banks, they are member owned non-profit organizations that aim at building up the local community. Due to their lower operating costs credit unions offer low mortgage rates.

Benefits of having home loan from a credit union

Purchasing a home is a daunting task due to the expenses involved. Most people apply for a home loan when buying a house as it makes the process easier. However, it is very difficult and time consuming to get a loan approved banks, due to the formalities and paper work involved. Thus, a credit union is the best alternative to banks for auto loans and home loans. It approves the loan quicker and offers flexibility in repayment as well.

  • Lower rates of interest: Credit unions offer favorable interest rates as compared to banks that help in making savings in the long run. The unions are non-profit organizations and are exempt from paying taxes like traditional lenders. Therefore, credit unions offer lower interest rate on home loan mortgages.
  • Flexibility: Unlike banks, the credit unions are more flexible in the policy and are cooperative with their members. As the credit union is members owned, all the members have the right to vote on important issues that affect the rates of interests. 
  • Lower income requirements: The credit unions may also approve borrowers with lower income. Thus people who might not qualify for a loan in a bank stand a better chance of getting a loan through a union. 
  • Other benefits: Some other benefits of taking home loans from credit union include personalized service in comparison to banks, higher payouts on certificates of deposits, faster closing options and even the possibility to miss a payment.
A credit union surely has an edge over banks and offers many benefits to its members. However, you should consider discussing your case with a consultant to get the full details about your individual case.

We, at Greater Central Texas Federal Credit Union provide you home loans at affordable interest rates. For more information, you can visit us at 3305 E Elms Road, Killeen, TX 76542 or call (254) 690 – 2274.

Home Loans: Jargons and Terminology

People who have ever applied for a home loan in Killeen, TX know how puzzling and nerve-wracking the process can be. The jargons and terminologies used by the financiers are so complicated that most of the customers fail to understand the basics of their home loan. Due to this, they end up striking deals without knowing about out their consequences. Thus, anyone intending to get a home loan must be aware of the meaning of the commonly used jargons.

Given below is a complete explanation of the common terminologies used in home loans:

  • Annual Percentage Rate (APR): It refers to the variable or fixed interest rate at which the financier is ready to lend the loan for a certain period of time. Borrowing a loan at a low APR does not always mean a cheap loan, particularly if it is a long term loan. Paying higher number of installments at a low APR ultimately leads to reimbursing more interest.
  • Comparison Rate: This includes the upfront loan fees as well as the proposed interest rate. Comparison rate will help you in assessing the true cost of the home loan.
  • Fixed Rate: This allows you to borrow the loan at a definite rate of interest with fixed monthly payments for a specified period of time.
  • Loan To Value Ratio (LVR): It refers to the size of your home loan in proportion to the actual value of the property to be purchased. For instance, if you borrow $200,000 to finance a home worth $400,000, the loan will have an LVR of 50% ($200,000 is 80% of $400,000).
  • Variable Rate: It keeps on varying according to the changes in official rates of interest.
  • Down Payment: When you borrow a home loan, the lender will require you to contribute certain percentage of your own money to buy the house. This initial amount is known as down payment. 
  • Refinance: This refers to procuring a new mortgage loan on an already owned home. This is usually done to switch current loans on the property. 
  • Loan Term: It is the time period before the maturity of your home loan and is usually indicated in months, usually 24 to 84 months. It helps the borrower have an idea about when he is expected to pay off the loan.
For more information about home loans in Killeen, TX, contact Greater Central Texas Federal Credit Union. You can call us at (254) 690 – 2274 or visit our office at 3305 E Elms Road, Killeen, TX 76542.

Home Loans In Killeen, TX

Owning a house is a dream for most people but it takes a lot of effort to come true as it requires having a lot of cash in hand. Buying a home is one of the most important and biggest investments of one’s life and it can be made easier with home loans. The provision to have home loans makes it possible for anyone to make this dream a reality. Home loans are easy and a quick way to finance your purchase and banks and financial institutions offer home loans to help people buy the required property. Banks usually offer home loans at their own conditions and even require the applicants to collateral something for the loan. They have rigid terms and repayment conditions and they also consider the individual’s credit history before granting a loan which makes the process very difficult.

Credit unions are very popular for getting home loans and are a better alternative to banks. Credit unions are organizations that help their members manage the money. These organizations are non-profit, co-operative in nature and basically work for the benefit of the registered members. The union is run by the members through the process of voting. You can easily open a savings account in your union and apply for a home loan without huge credit checks and conditions. The credit unions offer banking and lending services similar to banks but offer many more benefits and ease in application.

The credit unions offer home loans at low interest rates which can be modified depending on individual circumstances. The credit union offers personalized services and is more concerned about your personal situation as compared to banks. They have a softer approach and their processes are not as rigid as bank procedures. They offer speedier closings and consider your case even if you have had some credit issues in the past. Using credit union is secure and safe as the members assure that their organization is strong and dependable.

We, at Greater Central Texas Federal Credit Union, have been helping people in Killeen, TX since 1957. We offer low interest loans to our members and strive to offer the most reliable services. You can create a checking account and a saving account with us. We offer debit card, credit card and other facilities similar to a bank. You can avail home loan, auto loan and other small loans from us at attractive rates with convenient repayment options. We offer loans at flexible terms and help you save a huge amount of time and effort. To know more please visit us at 3305 E Elms Road Killeen, TX 76542 or call at ( 254 ) 690 - 2274.