Education is Essential

The Who’s and What’s of Mortgage Loans in Baton Rouge

Are you ready to buy a home? Are you in the market for a mortgage loan? There are many types of mortgage loans in Baton Rouge. It  is essential that you do your research and give your money to a financial institution that you can trust. Before you jump head first into a huge financial commitment, Essential Federal Credit Union wants to ensure you are informed so that you can make the right decision about your mortgage loan in Baton Rouge.

mortgage loans in baton rouge can take on many details

Mortgage Lenders

Before you choose what type of mortgage loan is best, you need to find a lender that you can trust. This is a crucial step in the process, and can make all the difference in the long run. Here are some of the places that offer mortgage loans in Baton Rouge:

  1. Credit unions – These not-for-profit financial institutions often offer favorable interest rates to members. Local and personal engagement is typically a high priority.
  2. Banks – For-profit enterprises that are owned by the investors and thus aim to increase profits. Banks typically have many branches and are up-to-date with innovative technology.
  3. Correspondent lenders – Local mortgage loan companies that have the resources to make your loan, but rely instead on a network of other lenders, such as Wells Fargo and Chase, to whom they sell your loan.
  4. Savings and loans – Smaller financial institutions referred to as thrifts, that are often very community-oriented and worth seeking out.
  5. Mutual savings banks – Another type of thrift institution, mutual savings banks are chartered by a central or regional government that is owned by its members who subscribe to a common fund.

Essential is a credit union, and thus our first priority is looking out for members’ best interests. If you want to learn more about our services, one of our representatives would love to speak with you!

Types of Mortgage Loans in Baton Rouge

Acquiring the right mortgage loan is a very important step in the homebuying process. Most people aren’t aware that there are many types of mortgage loans out there! Listed below are some of the most common types of mortgage loans:

  1. Fixed Rate – interest rate is fixed for the entire life of the loan, with two of the most common time frames being 15 year and 30 year
  2. Adjustable Rate – interest rate adjusts from time to time, typically after an initial period of remaining fixed. Adjustable rate loans are typically called “hybrid” products
  3. Conventional – a loan that is not insured or guaranteed by the federal government in any way
  4. Government-Insured – typically offer more flexible lending standards. Federal Housing Administration loans and Department of Veterans Affairs are both appealing government-insured loan options
  5. Jumbo – a loan that exceeds the conforming loan limits established by Fannie Mae and Freddie Mac, and usually have higher interest rates
  6. Conforming – loans that meet the underwriting guidelines of Fannie Mae or Freddie Mac and falls within their maximum size limit

With so many options and types out there, it is important to know which mortgage loan is right for you. One of our specialists would love to speak with you in more detail about each type of mortgage loan and your situation, to determine what is best for you.

Essential Has Your Back. Contact Us Today!

We know that getting a mortgage loan is a big step. When you are ready to take that step, make sure that you have Essential by your side. Our mission is to ensure that you can sleep at night with peace of mind. Give us a call at 1-888-369-2207 or send us an email. We would be happy to speak with you!