What types of mortgages does the credit union offer?
The credit union offers fixed-rate 40, 30, 20, 15, and 10 year mortgages, adjustable rate mortgages, interest only mortgages, and jumbo mortgages. (Jumbo mortgages are loan amounts greater than $417,000). We also offer financing on 1-4 family investment properties, 5, 10, or 15 year fixed-rate second mortgages and home equity line of credit loans. For more information on the credit union's mortgage products, please visit our Mortgage Option Center.
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What is the interest rate today?
Please contact a staff member at the credit union at 217-278-7700 for current mortgage rates for your loan amount and term. Our rates are subject to change at anytime and may change multiple times a day making it difficult to keep the rates updated on our Mortgage Option Center Website.
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What is the credit union’s mortgage lending area?
The credit union can originate mortgages within the state of Illinois.
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Does the credit union service the mortgages?
The credit union doesn’t service the first mortgages that we originate. (We do service our home equity loans.) We sell our mortgages to PHH Mortgage Services in Mt. Laurel, NJ. UIECU has had a successful business relationship with this reputable company for the past 10 years.
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Can I make my mortgage payments to the credit union through payroll deduction?
You can still have your payments set up through payroll deduction similar to your other loans with the credit union. The money will be deducted out of your paycheck and deposited in your checking or savings account here at the credit union. Once a month on the 1st, 5th, or 10th of the month the mortgage company will electronically deduct the payment from your account.
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What is a pre-qualification?
Pre-qualification is based on a verbal estimate by the borrower of their household income and monthly obligations. Based on these figures, we can give an estimate for which the borrower could expect to qualify. Pre-qualification is based on the borrower’s estimate and not on verified figures. Other factors, such as employment history and credit history, are also not verified for a pre-qualification.
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What does the pre-approval process entail? What is the fee for this? How long does it take to become pre-approved?
The next step after pre-qualification would be to apply to be pre-approved. The borrower would need to complete the application along with the attached disclosures and provide the necessary documentation shown on the checklist. The documents along with the application fee of $40.00 (fee for the credit report) should be dropped off at the credit union or returned at the time of the initial appointment. Once the documentation is received, we can pre-approve you during your appointment (some restrictions may apply). At this point, the next step is to find a home and approve the property through the appraisal. Please contact the credit union for a mortgage loan packet or visit our Mortgage Option Center to place your application on line.
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When can I lock into an interest rate and for how long is it good?
An interest rate can be locked for 60 days once the property has been selected. (A borrower can’t lock during the pre-approval process until they have a property.) Once the interest rate is locked it can’t be lowered for any reason if rates drop. Longer rate locks are available; please contact one of our mortgage loan professionals for additional information.
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What are points?
Points, also referred to as discount points, are an upfront interest paid to buy a lower rate on the mortgage for the term of the loan. A point is expressed as a percentage of the total loan amount. For example on a loan amount of $100,000, one point would be equal to $1,000 or two points would be equal to $2,000. This amount would be paid at closing in addition to the down payment and other closing costs.
Points are not beneficial to every borrower and need to be evaluated on a case-by-case basis. To determine if it is beneficial to you to pay points, you need to first calculate the principal and interest payment for the loan amount based on a rate with 0 points and then also, a payment based on a rate with points. The difference in the two payments is the amount you will save by paying points.
The next step is take the total cost of the points and divide by your monthly savings. This figure shows you how many months it will take to recoup the costs of the points. If you plan on being in your home longer than it takes to recoup the costs and can afford to pay the points, then it is an advantage to you. However if not, then you are better off to take a rate without points.
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Is an appraisal required?
An appraisal is required for a purchase transaction or to refinance a mortgage. (The exception to this is, in some instances, an appraisal will not be required for a home equity that is less than $50,000.)
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Is an attorney required for this transaction?
An attorney is not a requirement at the closing of your home, but is highly recommended for purchase transactions.
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What is the minimum down payment required?
95% financing is available at the credit union. Higher down payments may be required in situations involving, but not limited to:- Borrowers with some credit problems
- When purchasing investment properties
- Distressed markets
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What is Private Mortgage Insurance (PMI)? Is it required for my loan?
Private Mortgage Insurance (PMI) is required for all mortgage loans with less than 20% down payment. This insurance is included in your monthly payment and protects the lender in the case of default.
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How long is required that I be employed with my employer?
Generally two years with the same employer or in the same line of work is considered stable work history. Also, schooling in a field related to your current employment is considered to be in the same line of work. Other situations will be reviewed on a case-by-case basis.
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What is considered acceptable credit history?
Generally any payments that have been past due over thirty (30) days in the past two (2) years may require a detailed letter of explanation. Each situation will be reviewed on a case-by-case basis with the following being of importance: the number of times delinquent, the type of account that is or was delinquent, the reason for the delinquencies and a satisfactory explanation as to why these won’t occur again.
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Can I get a discount on my interest rate for using payroll deduction or for having an Illini Advantage or Illini Advantage Plus checking account?
Deductions can not be given on real estate loans. However, you are entitled to a discount of $50 on your mortgage closing costs with an Illini Advantage or Advantage PLUS Account.
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What are closing costs?
Closing costs range from $1,023-1,400. This estimate depends on numerous factors, such as whether your property is a purchase or refinance transaction, the amount of the loan, the location of the property, etc. Closing costs for Home equity loans are waived providing the loan isn’t paid off and closed in less than two (2) years.
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What is the breakdown of these fees?
The estimate of the fees is as follows. These figures are only estimates and may be higher based on the given situation.| Credit report | $40.00 |
| Appraisal | $200.00 - $300.00+ |
| Underwriting Fee | $460.00 |
| Tax Service Fee | $85.00 |
| Processing Fee | $40.00 |
| Closing Fee | $125.00 |
| Flood Certificate | $19.50 |
| Title Insurance | depends on the loan amount (refinance only) |
| Title Search Fee | $90.00 - $120.00 (purchase) |
| Recording Fees | $79.00 - 113.00+ |
| Title Certificate (Home Equity Only) | $50.00
|
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What is an origination fee? Does the credit union charge an origination fee?
An origination fee is a percentage of the loan amount that is charged to the borrower to originate the mortgage. We do NOT charge an origination fee.
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Does the credit union provide FHA or VA mortgages?
At this time the credit union does not provide FHA mortgages. However, we have low down payment programs that often allow a member to qualify for a conventional mortgage. Often times FHA loans have more fees associated with them. Therefore, borrowers need to compare the fees as well as down payment requirements to see which program is more beneficial for them.
The credit union does currently offer VA mortgages for eligible veterans. VA mortgages offer veterans a no down payment option on qualified loans.
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What is escrow? Is it required for my loan?
Escrow is where a portion of the real estate taxes, private mortgage insurance (if applicable) and homeowner’s insurance on your property is included in your monthly payment. They are held in an escrow account until they come due and the mortgage company pays them from this account.
To calculate how much this will add to your monthly payment, calculate the total amount due in a year for real estate taxes, private mortgage insurance (if applicable) and homeowners insurance and divide that number by twelve. You may waive the requirement to escrow for homeowners insurance for any loan. However there are requirements that must be met to waive escrow for real estate taxes on your primary residence. Investment properties are required to escrow real estate taxes.
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Can I purchase homeowner’s insurance through the credit union?
Members are responsible for selecting their homeowner's insurance company. Some members contact the vendor that has their auto insurance, as you may receive a multi-policy discount or Members Homeowners Insurance, underwritten by Liberty Mutual Insurance Company is available to members at 1-888-380-9287.
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How long does it generally take to complete the process and close?
The mortgage process generally takes between 30–60 days. Since we rely on the services of others and many different situations may arise beyond our control, it sometimes may take longer. Please be assured we process all loans as quickly as possible.
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Can I purchase life and disability insurance on my mortgage?
Mortgage protection insurance is available to credit union members through MEMBERS Financial Services located at the credit union. Please contact the MEMBERS Financial Services Representative at 217-278-7768 for more information and/or a free quote.
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