• Ask for quotes from various credit unions: Different credit unions will offer you varied rates of interests on home loans. Make sure you ask for a quote to have an idea about your monthly repayment amount. Apart from the rate of interest, you should be able to know the limit up to which you can borrow. Compare quotes from different credit unions and finalize the one that offers the lowest rate of interest.

• Fixed or adjustable rate loan: You can choose to get a home loan at a fixed rate of interest or an adjustable one. In case you select a fixed rate, the repayment amount remains constant throughout the loan term. On the other hand, the interest charged on adjustable-rate mortgage fluctuates over the time period of your loan. This eventually means your repayments will vary as well.

• Choosing the loan term: You can get to choose a customized loan term from a credit union. Therefore, you can decide the amount of time it will take you to return the home loan. Depending on your income and expenditure, you can settle for a particular number of years within which you will be able to repay your loan. Though a longer duration can lower your monthly payments, it would eventually lead you to pay more interest.

• Fees and charges: Check if you need to pay any fees or additional charges before getting a home loan approval. These may include ATM fees, loan fees, wire transfer fees etc.

Buying a car is a major long-term investment for families and involves a significant outlay of funds and careful consideration as to where those funds come from. For most families, taking out an auto loan is a viable and wise option as it gives them the adequate funds to make an outright purchase while scattering the actual payment over a period of time with monthly payments, thereby lessening the financial pressure on them by a considerable margin. Auto loans are easily available with the bare minimum of hassle if applied for by an experienced credit union. Auto loans can be of two broad kinds- secured auto loans and unsecured auto loans and the basic difference lies in the fact that with secure auto loans the vehicle that is being purchased is taken into consideration as  collateral for the loan amount and there is no collateral in case of an unsecured auto loan. While you decide which kind of loan you want to apply for, it is useful to know about the fundamental differences between these two kinds of auto loans and what each of them would imply for you.

Secured Auto Loans

In a secured auto loan, the car you purchase is worked into the loan agreement as collateral for the loan. Therefore, the party providing the loan retains all rights over the vehicle and you get the right to use the vehicle for your purposes. Once the loan is repaid fully, you receive the ownership rights to the car which is then transferred to your name.

Since the lender in listed as the lien holder in case of a secured auto loan, you need to maintain comprehensive coverage insurance on the vehicle until all loan dues are paid off. If you cannot make payments on time or fail to make them, the lien holder can ask the car to be returned. Inability to do so will cause the car to be legally repossessed to pay off for the remainder of the loan. The upsides are that interest rates are usually low and it is easy to get a loan approved for large amounts, thus enabling you to get the model of car you want.

Unsecured Auto Loans

These loans do not have any collateral mentioned, which means that once you purchase your car you can assume ownership of it immediately. Also, you are free to choose the kind of insurance coverage you want for your car. There is no possibility of an event where your car can be claimed or repossessed but the interest rates for unsecured auto loans can be relatively higher and approval processes might be a little more rigorous than those for secured auto loans.

We at Greater Central Texas Federal Credit Union can help you apply for a car loan in Killeen and deal with all the details. We can be contacted at (254) 690 – 227.