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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.

Savings Account Benefits

A credit union savings account lets you securely store your money and earn modest interest. Credit union members run these cooperatives as owners and customers, emphasizing competitive rates. At Greater Central Texas Federal Credit Union, we are more than a financial institution - we are your financial success partners. Our diverse savings accounts, including IRAs, Club accounts, Share Certificates of Deposit, and Regular Share Savings, empower your financial future.

Following is a list of the benefits of opening a savings account with a credit union:

Interest Rates: Credit unions often provide competitive interest rates on their savings accounts. This means that your money can grow more quickly over time through earned interest. Take advantage of our competitive interest rates that help your savings flourish.
Fees: Credit unions generally have lower fees for their accounts and services. This can help you save money on things like account maintenance, ATM usage, overdrafts, transaction fees and more. Credit unions generally offer robust online and mobile banking platforms with features like bill pay, fund transfers, and account management with little to no extra charges.
Member Ownership: Being a member of a Credit Union gives you a sense of ownership and a say in the credit union's decisions, as well as potential voting rights for matters such as board elections.
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Community Focus: Credit unions are typically rooted in the communities they serve, and they often prioritize local needs and initiatives. By using the services of a credit union, you are supporting the local economy and community development.
Financial Education: Many credit unions offer free financial education resources, workshops, and seminars to help their members make informed financial decisions. This can empower you to manage your money more effectively.
Focus on Member Needs: Since credit unions are member-driven, they are more likely to focus on your financial well-being rather than maximizing profits.
Deposit Insurance: Our savings account provides peace of mind as the National Credit Union Administration (NCUA) backs deposits up to $250,000.

At Greater Central Texas Federal Credit Union, we are committed to providing you with the tools you need to achieve financial success. Our savings account is a powerful resource that combines security, growth, and accessibility - all while being tailored to your needs.

To know more about savings and investment options in Killeen, TX, you can visit Greater Central Texas Federal Credit Union at 3305 E. Elms Rd., Killeen, TX 76542, or call (254)690-2274. You can also browse our services at www.gctfcu.net or check out our social media profiles on Facebook, Twitter, Google Plus, and Instagram.

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