Mortgages and Home Loans

Interest Rate

The mortgage interest rate for a loan is the price of the money loaned against a specific home or property's security value. This percentage is often adjusted based on your FICO credit score. The better the credit score, the less risk is associated with lending the money. Some financial institutions will also use down payments, membership status, and other personal factors to approve better interest rates.

Loan Term

The loan term of a home loan refers to the number of months you will agree to make monthly mortgage payments toward your new home. Different loans have different loan terms depending on credit scores, financial institution, type of structure to be financed, and optional payment features available within your selected loan plan. The loan term can also fluctuate depending on refinancing options or prepayment of the home loan. Your loan term, together with the interest rate, affects the total cost of the loan.

Life of the Loan

The Life of the Loan is a simple way of referring to the various stages of the loan growth toward maturation or default. Several optional steps can occur, such as refinancing, reverse mortgages, and HELOCs that affect the life of the loan and your end date.

Adjustable-Rate Mortgage

Many types of mortgages exist. One type of loan you will see offered often is the adjustable-rate mortgage or ARM. These types of loans have an interest rate that varies throughout the life of the loan. The initial interest rate is fixed for a period of time when the loan is closed. After the initial period, the interest rate varies periodically based on predefined intervals of time. Based on predetermined benchmarks and an additional spread called the ARM margin, the interest varies throughout the loan's life. Financial institutions refer to ARMs as Floating mortgages or variable-rate mortgages as well.

Fixed-Rate Mortgages

10- to 30-year terms (in five-year increments) available on primary residence.

Adjustable-Rate Mortgages

30-year 5-6 and 7-6 adjustable loans available on primary residence. (The initial fixed-rate period is five or seven years and then adjusts every six months).

Vacation Property loans

10- to 20-year terms (in five-year increments). 30-year term available if you plan to retire to the property.

We offer conventional first mortgages in all 50 states. If you are financing outside of our standard lending area of PA, NJ, DE, MD, FL, NC or SC, please call a Mortgage Professional at 215-934-3505.

HomeAdvantage^®

Learn more about PFCU's HomeAdvantage Cash Rewards Program.

Mortgage Calculators

Easily calculate your monthly payment, the difference between renting and buying, the APR for fixed-rate or adjustable-rate loans, how long it will take to “break-even” on a refinanced loan, your estimated tax savings.

Apply for a Conventional First Mortgage

Features

Here are some other features available to you.

• Fixed or adjustable rate loans are available
• Seller can assist with up to 6% of purchase price toward closing costs
• All funds for your closing costs can be from a gift
• Available for primary residences in all 50 states.
• View FHA Loan Requirements and more info in our details page.
• Non-traditional credit considerations (on-time rent, utility and insurance payments)

Apply for a FHA Home Loan

Features

Here are some other features available to you.

• No down payments, in most cases
• Liberal qualifying guidelines
• Fixed-rate terms
• No private mortgage insurance

Apply for a VA Home Loan

Features

Here are some other features available to you.

• Zero Down Payment
• 100% financing options
• Minimum credit score is 640

Benefits

Here are some other benefits available to you.

• If rates drop, USDA offers a streamline low-cost option to refinance and take advantage of the lower rates
• Lower mortgage insurance than conventional or FHA (typically results in a lower overall mortgage payment)
• Typically, the starting interest rate is slightly lower than FHA and VA or conventional loans depending on the borrowers credit score

Apply for a USDA Home Loan

Features

Home Equity Loans are ideal for:

• Consolidating debt. You’ll enjoy one low interest rate and one monthly and – most likely – smaller bill. Plus, you may improve your credit rating in the process.
• Home improvements. Use your equity to make improvements that can increase the market value of your home.
• College tuition. Your home's equity can help you invest in your child's future!

Apply for a Home Equity Loan

Features

Home Equity Lines of Credit are ideal for:

• Home improvements. Borrow the funds you need, when you need them for home improvement projects that can increase the market value of your home.
• College tuition. Your home's equity can help you invest in your child's future!
• Periodic expenses. Borrow funds in installments to pay off periodic expenses using your home's equity as your line of credit.

Apply for a Home Equity Line of Credit Loan

Features

Fast Track Mortgages are ideal for:

• Refinance your mortgage with no closing costs.
• Take this opportunity to lock in a historically low rate,* no closing costs and no appraisal fee.*
• Refinancing to a 15 year term can substantially lower your interest expense.
• This program does not include the option to escrow payment of taxes and insurance.

* APR = Annual Percentage Rate. This is the Credit Union's best rate. Rates and approval may vary depending on each borrower's credit history/eligibility, underwriting criteria and market conditions. Offer of credit is subject to credit approval. The available terms are subject to change without notice. Cannot be combined with any other offer and excludes all loans already financed at Philadelphia Federal Credit Union. Fees that PFCU pays on your behalf will be recaptured if the loan is paid off within first three years. For each $10,000 borrowed at 4.99% APR over a term of 180 months, pay approximately $79.02 a month. $25,000 minimum and $250,000 maximum loan amounts. Offer is valid for 80% loan-to-value up to a 15-year term. Property must be owner-occupied. Loan to be financed must be in first-lien position. We will lend in PA, NJ, DE, MD and FL. Some fees may apply for properties outside Pennsylvania and New Jersey. Property insurance is required and flood insurance may be required. Consult a tax advisor regarding the deductibility of interest.

Apply for a Fast Track Mortgage