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

How To Choose The Right Home Loan

3. April 2015 Administrator Home Loans (0)
With various financing institutions available today, finding the best deal on a home loan can be an overwhelming experience. When it comes to buying or refinancing a home, it is important that you carefully evaluate the pros and cons of different loan options. This will make sure that you are selecting the most suitable one according to your financial needs.

Given here are some of the important tips that can help you choose the right home loan from a credit union:

  • Loan Term: A lot of people opt for a longer term loan thinking that they can easily repay the amount. However, with this, they have to pay a greater amount of interest. On the other hand, short term loans can help you save thousands of dollars on your interest payments but requires a much higher monthly repayments to be made. If you have sufficient funds to pay off the loan easily, consider going for a loan with an optimum term and easy monthly installments.
  • Interest Rate: Mainly, credit unions offer two types of interest rates to the borrowers, fixed and variable. In the former one, the rate of interest and monthly repayments remain fixed throughout the loan tenure. In the latter option, the interest fluctuates as per the current market rates and so does the amount that you have to pay. It is advisable that you choose a fixed rate for a specific term and switch over to variable when the market rates are low. 
  • Extra Fees: Besides the interest rates, you must also check out any additional fees or charges levied by the lender. These may include the application fees, lender’s mortgage insurance, valuation fees, break fee, penalty for late payments etc. All these can make substantial changes to your monthly repayments. 
  • Additional Features: Make sure you clear all your doubts before signing your home loan contract. Ask your credit union if they offer redraw facility and if the loan is portable. This will help you to transfer your home loan to another property without having to carry out the entire process all over again. You should also ask if they offer any discounts for the repayments.    
We, at Greater Central Texas Federal Credit Union offer low interest home loans in Killeen, TX. For more information, feel free to call us at (254) 690 - 2274.
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GCTFCU Blog | Questions To Ask Before Getting An Auto Loan In Central Texas
Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Questions To Ask Before Getting An Auto Loan In Central Texas

14. September 2016 Administrator Auto Loans (0)
Getting an auto loan from a credit union can take you one step closer towards buying your new car. However, you need to do a comprehensive research before choosing a credit union for your auto loan requirements in Central Texas. If anything is not clear, you can consider making a list of questions to clear your doubts. Below are some questions that you should ask before getting an auto loan from a credit union:

Q: What is the interest rate on the loan?
It is imperative to ask about the interest rate being charged on your loan. The interest rate should be competitive and the total cost of the loan should be in your budget. Be clear about the monthly installments because you should be able to repay them easily. Affordability is the key to decide the exact loan amount you should borrow.

Q: Is the interest rate fixed or variable?
A fixed rate of interest on your loan means the rate will remain the same throughout the loan term. On the other hand, it may keep on altering in case of variable interest rate. Before deciding on a specific type of interest rate, take a closer look at your budget and determine if you will be able to cope up with changing rates of interest.

Q: What is the loan term?
Although lower monthly installments may seem to be a bit easier to repay but they will increase the length of your loan term. On the other hand, a higher EMI will decrease your loan term but can be overbearing on your finances. Therefore, you need to decide what suits you best and only then settle for the loan term.

Q: Is there a possibility of any penalties being levied on my loan?
In certain instances, repaying the loan before the end of your loan term may entail penalties. Apart from this, there are many extra charges that you might have to pay during the term of your loan period. It is best to clarify all these aspects before signing the loan agreement.

Q: What about credit insurance?
You may be offered insurance by your credit union or you may have to get it on the insistence of your lender. Before opting for credit insurance, you need to have a thorough look at your finances. You also need to check if it is mandatory to get the credit insurance as per the state laws so that you can make the decision accordingly.

For affordable auto loans in Killeen, TX, consider Greater Central Texas Federal Credit Union. We are located at 3305 E Elms Rd, Killeen, TX 76542.
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