Buying a home may be the biggest investment you've ever made. Sure, it's a little scary. But, with the guidance of knowledgeable real estate professionals, you'll be in your dream home in no time! Evansville Federal Credit Union's Mortgage Specialists are available to answer any questions you have and give you financing options to fit your needs. You can always trust us to give you the answers and service you deserve.

Make your home dreams come true with EFCU!

With our selection of Mortgage Options, there's one just right for you! No matter which you choose, we offer a variety of minimum down payment requirements as low as 5% and a maximum loan-to-value ratio of 95% of the appraised value or purchase price of the house, whichever is less. 

Fixed Rate Mortgages

If you want monthly payments to remain the same over the life of the mortgage, then our fixed-rate mortgage is for you. If you're planning to stay in your home for a while, or if you're on a fixed monthly budget, then a fixed-rate mortgage is probably the best choice for you. 5% down payment required.

Adjustable Rate Mortgages

Our adjustable mortgages typically offer rates and monthly payment amounts lower than those of fixed rated loans, potentially helping you to buy more house with the same monthly payment. Choose from adjustable terms including 3, 5, or 7 years. The interest rate and monthly payment amounts may change, but annual and lifetime caps protect you against sharp rises in interest rates. 20% down payment required.

Investment Properties

We have investment loan financing for up to 75% loan-to-value. Rates are slightly higher than our owner-occupied residences. Max loan term of 15 years.

Unlock the equity in your home, it is like having a vault of cash in your house!  We offer two flexible options to meet your needs:

Home Equity Line of Credit (HELOC):

- Borrow up to 100% of your home's equity

- 5-year draw period with interest-only payments, minimum $50 per month

- 10-year draw period with 1.5% repayment, minimum $75 per month

- Variable interest rate, with payments adjusting based on your principal balance

- Access your funds through a HELOC credit card, checks, online banking, mobile app, or in-person at any EFCU location

Fixed-Rate Second Mortgage:

- Borrow up to 100% of your home's equity

- Terms ranging from 60 to 180 months

- Enjoy a fixed interest rate and fixed monthly payment

- Ideal for consolidating higher-interest loans or credit card balances

Whether you need cash for home improvements, debt consolidation, or other financial goals, our experienced team is here to guide you through the process and help you find the right solution for your unique situation. Unlock the power of your home's equity with one of our flexible products.

Click here to review our current rates! 

If you are actively house hunting, Evansville Federal Credit Union recommends that you get pre-approved so that you know how much house you can afford.

Pre-Approval

A pre-approval involves verification of employment, income, assets, debts, and credit rating. A pre-approval means that you are pre-approved for a loan of a certain amount. Getting pre-approved will allow you to be confident in what you can afford and can also make you more attractive to a seller. To get pre-approved with EFCU, click here for the application. Additional information may be required.

Date		To Do:
		Be an informed buyer and familiarize yourself with the mortgage process. Review our FAQ's section above to get started.
		Be informed about the process and documents.
		Be aware of your credit situation. Click here to get a copy of your credit report.
		Start the Mortgage process by getting pre-approved with EFCU.
		When you find an acceptable house, write an offer. Your realtor should explain all of the details thoroughly.
		Negotiate the best deal using the information you have acquired.
		Protect yourself with a Home Inspection.
		Learn about Home Warranties and what they protect.
		Compare and secure Homeowners insurance.
		Start making plans for your move.
		Do a final walk through of the house.
		Final closing and settlement.
		Move into your new home and begin enjoying it!

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Whether you're moving one block away, or several states away, it takes a lot of time, patience, and above all, a sense of adventure. Use our Mover's Checklist to minimize the stress of moving!

	To Do:
30 days before
	Determine what you are going to move and start getting rid of everything else.
	Decide what you'll pack yourself and what you'll have the movers pack.
	Notify the Post Office of your new address.
	Gather medical and dental records for all family members if you will need to change doctors
	Notify schools and arrange to have transcripts and records forwarded to new schools.
	If moving out of town, remember that once you're an EFCU member, you're always a member. Sign up for e-Banking and become familiar with over 3,500 fee-free ATMs available to you nationally through Alliance One. Click here to search for ATMs in your new area.
2 weeks before
	Start packing.
	Return borrowed items and reclaim items borrowed from you.
	Arrange disconnect/connect dates with local utilities.
	Start thinking about where you'll place your belongings in the new house, so you'll have a plan when the movers arrive.
1 week before
	Dismantle outdoor play equipment.
	If moving out of town, transfer items from your safe deposit account to take with you.
	Pack items you want to move yourself and label "Do not move"
1 day before
	Disconnect water lines, empty and defrost your refrigerator and freezer, let the appliances air out for 24 hours.
	Finish packing personal items.
	Get a good night's sleep.
Moving Day
	Be present to answer movers questions
	Accompany movers throughout the house for an inventory of things to be moved.
	Confirm destination address with van operator. Also confirm time and date of delivery. Exchange cell phone numbers, just in case!
	Close all windows and turn out all lights.
	Lock all doors.
	Say goodbye to your house and get ready to create new memories at your new house!

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APR (Annual Percentage Rate): This is the interest rate on the loan plus any points and closing costs, calculated over the term of the loan. This should be used as a guide for shopping for a mortgage, since it may show hidden fees. It is not the same as the interest rate on which your mortgage payments are calculated.

ARM (Adjustable Rate Mortgage): This is a mortgage with a rate that is fixed for a specific initial period, but which adjusts at a specific frequency based on the given index. ARMs are usually expressed as the following examples:

• 3/1 ARM - A mortgage with a fixed rate for three years that adjust annually thereafter
• 5/1 ARM - A mortgage with a fixed rate for five years that adjusts annually thereafter
• 7/1 ARM - A mortgage with a fixed rate for seven years that adjusts annually thereafter

Appraisal: An opinion of the market value of a property, made by a qualified appraiser.

Balloon Mortgage: Usually a short-term fixed-rate loan, which involves small payments for a certain period of time and one large payment for the remaining amount of the principal at a time specified in a contract.

Cap: A provision of an ARM limiting the interest rate or mortgage payment's increase.

Construction loan: A short-term interim loan for financing the cost of construction. The lender advances funds to the builder at periodic intervals as the work progresses.

Debt-to-Income Ratio: The ratio expressed as a percentage, which results when the borrower's monthly payment obligation on long-term debts is divided by his or her gross monthly income.

Equal Credit Opportunity Act (ECOA): Federal law that requires lenders and other creditors to make credit equally available without the discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.

Fixed Rate Mortgage: A mortgage in which the interest rate is set for the term of the loan.

Hazard Insurance: A form of insurance in which the insurance company protects the insured from specified losses, such as fire, windstorm, etc.

Homeowner's Insurance: A policy that combines liability coverage and hazard insurance.

Homeowner's Warranty: A type of insurance that covers repairs to specified parts of the house for a specified period of time.

Housing Expenses-to-Income Ratio: The ratio expressed as a percentage, which results when a borrower's housing expenses are divided by his or her gross monthly income.

Impound/Escrow: The portion of a borrower's monthly payments held by the lender or service to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due.

Index: A published interest rate against which a lender measures the difference between the current interest rate on an adjustable rate mortgage and that earned on other investments, which is then used to adjust the interest rate.

Jumbo Loan: A loan with an amount over conventional guidelines. Contact us for a rate quote.

Loan-to-Value Ratio: The relationship between the amt. of the mortgage loan and the appraised value of the property, expressed as a percentage.

Mortgage Insurance (Private Mortgage Insurance or PMI): Money paid to insure the mortgage when the down payment is less than 20 percent. It protects a lender against a loss if the borrower defaults.

Origination Fee: A fee or charge for work involved in evaluating, preparing, and submitting a proposed mortgage loan.

Pre-payment: A privilege in a mortgage permitting the borrower to make payments in advance of their due date.

Pre-payment Penalty: Money charged for an early repayment of debt.

Points: One point equals 1 percent of the mortgage amount. This is a closing cost and may be tax deductible (consult a tax advisor). Typically, the more points paid at the time of the closing, the lower the interest rate on the mortgage.

Title Insurance: A policy, usually issued by a title insurance company, which insures a home buyer against errors in the title search. The cost of the policy is usually a function of the value of the property, and is generally paid by the purchaser.

Truth-in-Lending: A federal law that requires lenders that they fully disclose, in writing, the terms and conditions of a mortgage, including the APR and other charges.

Frequently Asked Mortgage Questions