Interest rates may be on the rise very soon. With Goldman Sachs predicting that the Federal Reserve will raise its benchmark interest rate by a full percentage point this year as referenced this this article by CNBC, you are most likely concerned how this increase may effect your personal bottom line. As interest rates rise alongside inflation, it’s natural to feel financial stress. When was the last time you evaluated your home or vehicle loan rates? Now is a great time to explore The Family Credit Union and our competitive rates for financial relief.

Here For You With Competitive Rates

Amidst daily concerns like groceries and gas costs, rest assured that the Family Credit Union understands. You can have confidence in our commitment to maintaining some of the best loan rates in the area.

Our Door is Always Open

Feeling the weight of increasing interest rates and inflation? We’re here for you. Our expert team is ready to explore potential savings on your home or vehicle loans with no obligation. Our goal is to help you navigate the financial terrain that you deal with day to day. 

Are you ready to evaluate your home or vehicle loan and see if there are savings for you in 2022? Contact us today! To get more information about our current rates, click here.

If you want to become a member or discuss your financial needs with our team, locate the nearest branch.

According to CNBC, there are two big changes regarding mortgages that begin in July of 2017. The changes could benefit millions of potential home buyers by allowing them to qualify for home loans.

Changes from Fannie Mae and Freddie Mac

Fannie Mae and Freddie Mac, the two biggest sources of financing for mortgage lenders, has begun to allow borrowers to have higher levels of debt and still be eligible for a home loan. The debt-to-income ratio limit is being raised to 50% of pre-taxed income from the previous 45%. The change was made primarily to help people that have high student loan debt.

According to Doug Duncan, Fannie Mae’s chief economist, younger borrowers were being left out of home ownership due to their student loans. This doesn’t mean that home loans will just be freely handed out like they were prior to the financial crisis. Duncan goes on to say, “We look at all the other criteria that are information-rich, in terms of assessing that individual’s risk profile, and they have to look good in all those other areas.” However, it does open home ownership to those that previously may not have been able to get a home loan.

Changes from Credit Rating Agencies

There are three major credit rating agencies in the United States: Equifax, Experian, and TransUnion . Most mortgage lenders use the credit ratings of these three companies to decide on the elegibility of an applicant and to calculate other things like interest rates and other terms.

These credit rating agencies will drop tax liens and civil judgments from consumers’ ratings if the information is incomplete. They have found too many errors or missing information, causing problems in calculating a correct credit rating.

According to the credit rating company Fair Isaac Corp. (FICO), an estimated 7% of the 220 million Americans with a credit profile have liens or civil judgments against them. The Federal Trade Commission did a study that shows 20% of consumers have at least one error on one of the three major credit reports. By dropping incomplete tax liens and civil judgments, scores could increase by 20 points or so.

Now’s A Good Time For A Home Loan

If you have been holding off on doing any home shopping because of the cloud that has been over the market, now may be a good time to look into a home loan. There are a lot of homes on the market and with the changes listed above, it may be easier for you to get a home loan.

The Family Credit Union offers home loans that you can apply for online. We offer 10, 15, 20, and 30-year fixed rate mortgages and 5/1 and 10/1 adjustable rate 30-year mortgages. You can generally get pre-approval within 24 hours and you have the ability to finance up to 97% of the home’s costs.

We are proud to serve the Illinois and Iowa Quad Cities and so we process and underwrite the loans locally and you can make payments at your local branch.

Are You A First Time Home Buyer?

When you are looking to buy your first home, you may not be sure where to even begin. Give us a call or stop in and learn about our First Time Home Buyers Program. We will help you navigate the path to home ownership and give you a closing cost discount of $250.

Need More Information About Buying A Home?

We want everything to go smoothly for you when you are looking to buy a home. That is why we put together a Family Mortgage Guide in both English and Spanish. It is full of information, checklists, and other things to help you get ready to make your purchase.

Feel free to contact us at 563-388-8328 or stop in at your favorite Family Credit Union branch for more information or if you have any questions. We look forward to making your next home purchase an easy and pleasant experience.