Champion Credit U- Frequently Asked Questions

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FAQ

1.	How do I determine how much I can afford? Answer
2.	How do I know which type of mortgage is best for me? Answer
3.	What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
4.	How much of a down payment must I have for a purchase? Answer
5.	What does my mortgage payment include? Answer
6.	When can I lock in my interest rate, and how long is it good for? Answer

Q :	How do I determine how much I can afford?
A :	The amount that you can borrow will depend upon your income, employment history, credit history, current savings and debts, and the amount of down payment you are able to make. You may also be able to take advantage of our First-Time Homebuyers program to purchase a home with no down payment required. Give us a call or apply online and we can help you determine exactly how much you can afford.

Q :	How do I know which type of mortgage is best for me?
A :	Champion Credit Union can help you determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Champion Credit Union can help you evaluate your choices and help you make the best decision. Give us a call or apply online and one of our experienced mortgage loan officers will contact you as soon as possible to help you determine which mortgage program we have that will work best for you!

Q :	What is the difference between a fixed-rate loan and an adjustable-rate loan?
A :	With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us. So give us a call or apply online today and let one of our experienced mortgage loan officers help you make the best decision on which type of loan will work best for you!

Q :	How much of a down payment must I have for a purchase?
A :	We have a range of mortgage products that require anywhere from 0% to 20% down, depending on which loan you qualify for. Champion Credit Union does however offer a First-Time Homebuyer program requiring no down payment. Give us a call or apply online today and let us determine which loan will best fit your specific needs.

Q :	What does my mortgage payment include?
A :	For most homeowners, the monthly mortgage payments include three separate parts: Principal: Repayment on the amount borrowed Interest: Payment to the lender for the amount borrowed Taxes & Insurance: Monthly payments are normally made into a special account for items like hazard insurance and property taxes. This is the feature often referred to as "Escrow". Champion Credit Union will require that an escrow account be set up at closing and 1/12th of the charges will be included in the monthly mortgage payment.

Q :	When can I lock in my interest rate, and how long is it good for?
A :	You can lock in your interest rate at the time of application. The rate can be locked, based on loan program, for 30,45, or up to 60 days. Give us a call or apply online today and let one of our experienced mortgage loan officers help you determine which mortgage loan will best fit your specific needs.