Making A Difference at the Provident Credit Union’s Mortgage Rates

It’s every family’s dream to own a house that they can call home, but with all things expensive today, it has become very hard for people to immediately get and buy one. So what can people do then in order for them to have enough money and purchase the house of their dreams? Since buying a house spot cash is hardly possible nowadays, that’s when banks and credit unions with easy mortgage rates come in. With the right kind of housing loan, even the average Joe can get the house of his dreams. Banks and financial companies in the United States are offering a lot of this kind of deal and one of these is the Provident Credit Union that was established in the year 1950.

About Provident Credit Union

Provident Credit Union is on the 19th spot of the largest financial companies in California. Their reputation is known throughout the United States and this is one of the reasons why many people go to them when they apply for a mortgage loan. Members also appreciate their low mortgage rates that are simply easy and acceptable on their pockets. For those interested, Provident Credit Union has branches all over California.

Fixed/ Adjustable Mortgage Rates

Provident Credit Union offers great deals when it comes to mortgage rates or loans and one of this is the Fixed/Adjustable mortgage. This is a fixed deal because its duration is for three to ten years, and then the involved parties will be able to convert it to an adjustable and appropriate rate. It simply means that people can afford their first home and be able to move up to a better house without having any problems. How does one pay for it? For those with conforming loans amounting to $417,000 or less, they can have a period of fixed rate from three to ten years. The rate for the term of ten years is only 3.00% with an APR of 3.089%. While for the 20 year term, the interest rate is 3.50% and an APR of 3.662% and so on. Those who are interested should then check out the Provident Credit Union site for more information with regards to the different mortgage rates.

Get Low Mortgage Rates with Provident Credit Union

Mortgage rates are expected to remain low. This is due in part to the volatility of politics and economic factors. Forecast has it, rates will be steady at 4.00% to 4.30% Thus, keeping an eye out for high-interest deals is very important, as this can help you move your money wisely.

One lending institution that offers significantly lower interest Mortgage rates is Provident Credit Union. Currently, they provide an interest rate of 3.500% to 3.875%, and an APR of 3.699% to 3.910%. These variable rates depend on the type of discount you will incur.

About the Rates

Provident Credit Union has several mortgage schemes to offer. The most striking feature for each type is what they call the “hybrid” loan. It works like a combination of a fixed rate loan and an adjustable rate loan – all in one mortgage plan.

For example, you set yourself up for a three-year mortgage. In this regard, you are expected to pay the fixed interest. After this time period, you can then convert the mortgage plan into an adjustable rate, and earn a new APR and interest rate at that.

Why is this payment scheme better than the conventional? It is because the flexibility of being able to change into a different mortgage plan may help in saving you a lot of money. In other lending firms, once you choose a fixed interest rate, you are expected to pay the same APR until you fully pay the loan. ARM loan-types typically carry the risk of rising or falling along with the economy, so if you choose a pure ARM type loan, you have to take the risks that come along with it.

However, with this hybrid loan, you can have the chance to pay less. Let’s say after three or five years the mortgage economy will be at its peak. Then switching to the ARM type is really a good deal. However, if it has been continuously down in the money market dumps, you can still save your mortgage and continue to pay lesser-than-average rates at that time.

If you check their website, you can see that their rates are lower than the national average. You might also notice that there is a table for discounts. This determines the variability of your rates. In order to get lower rates, you must pay a certain amount of money upon your loan closing, upfront. Even if you get to pay a large amount of money at the closing, you will enjoy lower rates thereafter.

Even when predictions state that mortgages are facing a dim future this month,Provident Credit Union remains steadfast, and from the looks of their competitive rates, it clearly knows what it is doing.