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

Things First-Time Home Loan Borrowers Must Know

8. March 2016 Administrator Home Loans (0)
Buying a home is one of the most important and biggest financial decisions that you may take in your lifetime. The process of taking a loan to buy a home may seem overwhelming, particularly for first time buyers. The paperwork, jargons and formalities may prove to be too mind-boggling if you are not prepared.

Following factors will help to understand the constituents of a home loan and ease out the process if you are first time home loan borrower.

  • Principal Amount: This is the amount that you are looking to borrow. This may not be the actual price of the home as some investment needs to be done by the buyer in the form of down payment and only the rest will be extended as loan. The amount you can afford as down payment must be carefully decided keeping your financial position in mind.
  • Interest rates: There are two types of interest rates that you can opt from. Variable rate depends on the situation of the market and suits a borrower who can afford the volatility of the rate. Fixed rate remains the same for the entire tenure as agreed at the time of loan approval.
  • Eligibility: It is important to review your credit history so you are aware how much loan amount you are eligible for. You can also get a co-applicant for a loan that has a steady income to improve your combined eligibility and up the amount you can take as loan.
  • Time Period: After evaluating your current and future financial requirements, decide on the time period for which you will repay the loan amount. This may vary from 10 to 20 years and will affect your monthly payouts.
  • Processing Fees: Ask the agent at the credit union if there is any processing fee for the loan you are applying for. In some cases, this fee is waived off for customers depending on schemes offered by the lender and in other a percentage of the loan amount is charged.
  • Pre payment charges: Check if you will have to pay some extra charges in case you wish to pay your loan amount before the actual date. This may be a possibility if your financial condition improves and you are in a position to pay-off the loan.
  • Check all papers: Once the application has been processed, read all documents carefully. Every minute detail must be clear to you so there are no disputes in the future. You must also save all correspondences for reference.
We, at Greater Central Texas Federal Credit Union offer home loans at affordable interest rates. For more information, you can call at (254) 690 – 2274.
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GCTFCU Blog | Tips To Finance Your Next Car: Secured Vs Unsecured Loans
Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Tips To Finance Your Next Car: Secured Vs Unsecured Loans

21. May 2016 Administrator Car Loan (0)
If you are planning to finance your next car, there are different kinds of loan options available. The two most common of them are: secured and unsecured loans. Both types of car loan options have their own advantages as well as disadvantages. Read on to decide which one is better for you.

Secured Car Loans:

  • Definition: In this case, you need to put a collateral against the loan amount which, in most cases, is the car itself. If you fail to repay the loan in the specified time period, the lender has the legal right to sell off the collateral to recompense the principal amount along with the interest.
  • Rate of interest: The rate of interest offered for a secured car loan is usually less as compared to an unsecured car loan. It poses a lower risk for the lender as putting the car as the collateral reassures that the loan will be repaid in time.  
  • Premiums: Secured loans are generally offered on a fixed interest rate, i.e. your premiums will remain constant throughout the loan term. The monthly payments may also be higher to pay off the loan in a shorter period of time.  
  • Borrowing limits: A secured loan tends to have a higher borrowing limit. Therefore, you can borrow more money to purchase the car you want without having to invest much out of your pocket.
Unsecured Car Loans:

  • Definition: In an unsecured loan, you do not need to provide any security to the lender. The loan is approved on the basis of your income, credit history and other related parameters.
  • Rate of interest: The interest rate quoted for an unsecured car loan varies for each borrower. It may depend upon your income, amount of loan and credit record. The interest is usually higher as compared to secured loans because there is no collateral associated and hence offers no security to the lender. 
  • Premiums: An unsecured car loan can be offered either on a fixed or variable interest rate. Hence, your premiums may remain constant or vary according to the fluctuating market rates. 
  • Borrowing limits: The loan amount that may be sanctioned depends upon the value of the car to be purchased, your credit history and income. You can finance a certain percentage of the total cost of the car and the rest needs to be invested from your side.
We, at Greater Central Texas Credit Union, offer both unsecured and secured car loans in Killeen, TX. For more information, you can call us at (254) 690 – 2274 or visit 3305 E Elms Rd, Killeen, TX 76542.
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