Real Estate Mortgages
It’s smart to spend time investigating which mortgage is right for you. Whether you’re purchasing a new home or refinancing your existing home, knowing which loan type to pick is crucial. You can start by learning as much as you can – check out the information on this page – by using a mortgage calculator , or by talking to a knowledgeable mortgage loan professional.
Jumbo Mortgages
The limit on conforming loans is $484,350, but jumbo mortgages can exceed these limits, going up to $3 million. And with skyrocketing housing prices in the Bay area, most people need a jumbo loan.
- Credit history – Jumbo mortgages are usually available for borrowers with very good credit, which generally means a FICO score of 620 or higher. There are also established guidelines for income and other personal financial information.
- Property appraisal - The property appraisal must support the purchase price for the home and the mortgage the borrower wants. The maximum loan amount will be based on the lesser of either the sales price or the appraised value.
Fixed-Rate Mortgages
We offer both conforming and jumbo fixed-rate mortgages. The maximum loan limit for conforming loans is typically $484,350; Jumbo loans are for amounts greater than $484,350. We offer:
- 15- and 30- year terms with fixed monthly payments
- Fixed rates (payments stay the same through term)
- Jumbo financing available
- Refinancing options available
Adjustable-Rate Mortgages
Adjustable-rate mortgages are a hybrid of fixed and variable rates. Generally, fixed-rate interest is offered the first few years of the loan followed by variable rate interest after that. Therefore, investors can expect to have varying payment amounts for the life of the loan as opposed to one consistent payment, as with a fixed-rate loan.
The advantage of an adjustable-rate mortgage is that they carry lower interest rates during the fixed period of the loan. Plus, if you don't plan to live in a home for 30 years, why borrow for 30 years to buy it?
PoppyLoanTM
San Francisco Federal Credit Union has a home loan product that offers up to 100% financing on your dream home! Why pay ridiculous rent when you can buy your own home with the customizable POPPYLoanTM, a game-changing solution to that woeful lament: "I don't have enough money for a down payment!"
- A POPPYLoanTM can be up to $2,000,000
- Financing available up to 100% of the purchase price or appraised value, whichever is less
- You're qualified as long as you live or work in San Francisco or San Mateo County
- Available for primary residences only, in all nine Bay Area counties
- No Private Mortgage Insurance (PMI)
- Tax & insurance impounds are required
- Eligible property types are SFR, owner occupied multi-family 2-4 units, and condos
Reverse Mortgages
Many seniors find themselves with a limited income, but a significant amount of equity in their homes. A reverse mortgage is a tool that allows you to take the equity out of your house without having to sell it or make payments. Like the name implies, a reverse mortgage is the reverse of a traditional mortgage. The value of your house is divided into equity (the amount of the house that you own) and debt (the amount of the house that the lender owns through a mortgage loan provided to you). With a traditional mortgage you make payments on your loan to the lender each month, increasing your equity and decreasing your debt. Eventually, if you stay in the home, you will own it free and clear.
With a reverse mortgage the lender gives you money instead. Essentially, you are getting back the equity in your house through a loan. Thus, a reverse mortgage reduces your equity and increases your debt. (Eventually you could have no equity in your house.) While you are in the home you do not need to make any payments to the lender, and you get to keep the title to your house. The most common type of reverse mortgage is the Home Equity Conversion Mortgage (HECM)
We’ve partnered with Alliance Reverse Mortgage to make reverse mortgages available to our members. Imagine living in your home mortgage-free, or enjoying tax-free* proceeds for life thanks to the years you’ve invested in the property.
A reverse mortgage is a specialized loan designed for individuals age 62 or older. With a reverse mortgage, you’ll enjoy:
- Part of the equity in your home while maintaining the title and ownership.
- Loan insured by the Federal Housing Administration
- Never owe more than your home is worth
- No repayment is due until the last borrower dies or permanently leaves the home
For more information, check out our FAQs or please contact Alliance Reverse Mortgage at 800.842.3601 or San Francisco Federal Credit Union at 415.359.2977.
* Borrowers should seek professional tax advice regarding reverse mortgage proceeds. San Francisco Federal Credit Union offers reverse mortgages through a strategic partnership with Alliance Reverse Mortgage, formerly CA Reverse Mortgage Consultants, Member of the National Reverse Mortgage Lenders Association. CA Bureau of Real Estate Broker 01524732 / NMLS 248216.
Refinancing Your Home
If you are thinking of refinancing your home to save money, take time to do the math and determine if it will actually net you the right amount of money. Consider the amount of time you plan to stay in your home as well as the impact of things like closing costs and pre-payment penalties.
- If it's early on in your mortgage term. Refinancing is usually best if you've been in your home a short time as your payments are primarily going toward interest. Down the road when you shift to paying more principal than interest, keeping your original loan may be best.
- If interest rates are dropping. It may be a good time to refinance if mortgage rates are falling. By either keeping your current repayment term and lowering your monthly payments or keeping your monthly payments relatively the same and shortening your repayment terms, you may reduce your total borrowing costs.
- If your home's value increased. If your home has significantly increased in value, refinancing may allow you to take advantage of that boost in equity. You could then use those funds to pay off debt or make a large purchase.
- To lower your monthly payments. Want to free up cash? If you're planning on being in your home for a while, you may want to refinance for a longer term; if you're looking to move in a few years, you may want to opt for a lower rate adjustable-rate mortgage (ARM). Either way, you could lower your monthly payments.
- To reduce the home's total cost. Provided rates are lower than when you purchased, refinancing for a shorter term may allow you to pay your home off sooner and lower your interest payments. Your monthly payments will be relatively the same and you could save thousands in interest over the life of the loan.
- To take cash out. Taking cash out means using your home's equity to refinance for more than you owe on your principal mortgage balance in order to get a cash payout. Keep in mind that cash-out refinancing does increase your overall mortgage debt.
Once you've determined that conditions are right for you to refinance, work with your San Francisco Federal Credit Union Loan Processor to select the best refinancing option for you and understand what the next steps are for the loan you're refinancing.
