Education is Essential

Mortgage Facts and Why They’re Important

When we’re kids, there are plenty of things adults do that we just don’t understand. One of those things is mortgages. We hear about them all the time, but who knows what a mortgage is when they’re a kid? But the thing is, many of us don’t even know what a mortgage is now, even as adults. Well, it may not seem like a serious issue, but knowing more about a mortgage could quite literally change someone’s life. If you’re considering buying a house, refinancing your mortgage, or more for your home in Walker, LA, we’re here to help. Trust in Essential Federal Credit Union to get you the knowledge you need to get your finances in order. 

What Is a Mortgage?

A mortgage is simpler than you might think! Are you trying to buy a house or another piece of property but cannot afford to pay the full price? The solution is simple—a loan better known as a mortgage. 

This loan is paid in installments, just like your rent check in the past. But unlike rent, there are a few eligibility requirements that need to be met for a mortgage. Usually, these requirements are being stable financially, a debt-to-income ratio of less than 50%, and a pretty decent credit score. (Remember, the better the credit score, the better the mortgage rate!) 

Mortgages also follow either a fixed-rate or an adjustable-rate system. Meaning that you have to pay off your mortgage in a predetermined amount of time. With fixed-rates, your interest stays the same throughout the loan, but for adjustable rates, there’s a period of fixed interest. Although once that ends, the rates can go up or down once a year in accordance with the market at the time.

How Essential Can Help

At Essential, we offer many types of mortgage loans! Because of these, we can help you get the mortgage you really want. 

If you’re trying to get a mortgage loan for a new home in Walker, LA, get in touch with the professionals at Essential!

Ready to Dive Into a Mortgage for Your Walker, LA, Home?

Do you feel like you’re ready to handle a mortgage? As your financial experts, we’re more than happy to help you learn more about your choices. Do you want to know more about financials and tips from your favorite credit union? Follow our blog to stay up to date and to learn more about loans, banking, and more.

If you have any questions regarding your own mortgage with Essential Federal Credit Union, give us a call! Visit our Walker branch on Walker South Road today or call 1.888.369.2207 to ask us any questions. We look forward to helping you!