Be knowledgeable of your mortgage options with GOLD Credit Union

For the last few years – okay, the last decade – mortgage rates have been at historically low levels.  With volatility in the market, and changing economic conditions, we’ve begun to see interest rates climb to higher levels.  While the rates are higher than most are used to seeing, they really aren’t as high as some may remember. 

If you bought a home in 1990, mortgage rates were at 10%.  That was considered low, compared to the average rate of 18.63% in 1981.  A few years later, there was a “refi boom” of sorts, as many celebrated the new “lower rates” by refinancing to a low, low rate - -  of 8%!  Fast forward to now, and we have a generation of home buyers that can’t remember rates above 6%, with many experiencing “rate anxiety” as rates push from the lower 4’s to the upper 4’s and even over 5% in some cases, with the possibility of additional increases in the New Year.

It’s for this reason, that your Credit Union is determined to keep that rate anxiety low, or at least manageable.  Within the next month, we’ll launch a new program providing our home buyers with a “rate advantage” in the marketplace.  While we can’t roll back the clock to 2012, when rates on a 30 year mortgage were in the 3’s, we can try to insulate you from future volatility while you shop.  More to come on this in the near future.

Another anti-anxiety option you’ll find – the 5/5 ARM.  Adjustable Rate Mortgages typically strike fear in most – and many times, this is more due to lack of knowledge on how they work.  GOLD has quietly offered our members a 5/5 ARM for the last few years, and will be launching it more prominently with our rebranded website.  With most ARMs, there is a period of a fixed rate – typically the first three, five, or seven years – following by a loan term that adjusts every year.  Talk about anxiety!

With a 5/5 ARM, you have the best of both worlds with a lower-than-market starting rate that only changes every 60 months, offering a longer period of stable rates with minimal opportunity for a rate adjustment.  If you are not buying your forever home, and know you’ll be moving on sooner rather than later, or if the lower payment fits your budget so you can invest more aggressively, or if you plan to win the Power Ball or Mega Millions and pay your mortgage off early, the 5/5 ARM may be just for you.

For more details on any of our mortgage options, and how they’ll work for you, call our Mortgage Consultant at 800.641.5036 or email mortgages@goldcu.org.

 

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