MSUFCU will originate a mortgage loan for single and multi-family properties, including owner occupied primary residences and second residences (vacation home), and non-owner occupied investment property in Michigan, Illinois, Alabama, Arizona, Colorado, Florida, Georgia, Indiana, Kentucky, Minnesota, Missouri, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Virginia, Washington, and Wisconsin. Property options include site built homes, condominiums, and manufactured homes. Construction loans for owner-occupied primary residences and second residences are available in Michigan and Illinois. MSUFCU also offers Vacant Land Loans for property in Michigan and Illinois.
A mortgage rate lock is simply MSUFCU promise to hold a certain interest rate for you for a specified period of time before you close on a loan. Because interest rates have the capability of fluctuating on a daily basis, you will need to consider the potential interest expense you may pay if a rate increases prior to locking your rate, or if you elect to have a floating interest rate (not locked).
For a new home purchase, you have the option to lock your interest rate when we receive the purchase agreement signed by all parties. For a mortgage refinance, you have the option to lock your interest rate after your complete application is received.
Once you close on your mortgage, your rate stays the same with a fixed rate loan, or if you have an adjustable-rate loan, the rate will change on the scheduled defined in your loan agreement.
There is no fee to lock in your interest rate. If the rate goes down during your mortgage process and you want to take advantage of the lower interest rate, you may re-lock the rate up to two times. The re-lock fee is only 0.1% of the loan amount, no less than $250, no more than $1,000.
For example:
The option to lock or re-lock your interest rate is available up until 10 days before your mortgage closing.
We offer home loans for owner occupied/vacation homes in the following states:
A SmartLineSM Home Equity loan gives members the flexibility to have both a line-of-credit and fixed-rate loan options. Eligible properties include primary residences and owner-occupied second homes located within Michigan, Illinois, Florida, Indiana, Ohio, and Wisconsin.
Once a SmartLine request is approved and finalized, members have the option of utilizing the funds as a variable-rate line of credit, meaning transferring the funds into their checking account to use accordingly. Members may also request to lock a Segment, which fixes a portion of the funds comparable to a loan at a fixed rate. Please note that interest is only charged on funds that have been borrowed. Segments must be at least $2,500 each.
After the first segment, there is $25 fee for each segment lock or unlock. To lock a Segment, contact the Credit Union by selecting the segment lock option within ComputerLine, the mobile app, by visiting a branch, calling 517-333-2424, or through the Message Center.
A Fixed Rate Segment is choosing to take a portion of your available line of credit and putting it into a fixed-rate that has a fixed monthly payment based on the term selected. The terms are a maximum 15 years or remaining term of the 25 year loan, whichever is less. A Fixed Rate segment allows a person to have a fixed-rate loan that has the same monthly payment for a specific amount of time - making budgeting easier.
For example, if you remodeled a bathroom for $10,000 and chose five years for the term of this segment, you would make 60 monthly principal and interest payments that will be fixed for the term. As you make payments on the locked segment, that money (minus interest) becomes available in the line of credit portion of your SmartLine℠ Home Equity loan.
A SmartLine℠ Home Equity Loan has a term of 25 years. For the first 15 years advances may be taken from the available credit. After the advance period, there is a 10 year payback period. Once reaching the payback period, no other advances are able to be made from the SmartLine℠ Home Equity Loan. The interest rate you qualify for will be determined based on recent soft credit pull or credit report score and the amount owed will be broken down into 120 equal payments.
Monthly payments are required once funds are borrowed from a SmartLine℠ Home Equity Loan. If there are no locked segments, the options for repayment are either monthly payments of 1% of the amount borrowed or Interest only, if eligible. These options are available during the 15 years of advances. After the 15 years, you will have 10 years to pay off the outstanding amount borrowed.
If there is a locked segment, repayment is made by making the fixed-rate monthly payment at the rate determined at the beginning of the lock. If there are multiple locks, the monthly payment would be the sum of the fixed-rate monthly payment of each.
If there are locks and money that has been borrowed from the line of credit, the monthly payment would be the sum of the fixed-rate monthly payment plus either 1% of the amount borrowed or interest only on the amount borrowed outside of the lock.
As payments are made, these funds replenish in your line of credit minus any interest paid. The amount owed will go down and credit availability will go up.
You may want to consider a Streamline Refinance if current mortgage rates are lower than what you pay now. Your payment may be considerably lower, you'll pay less interest, and you'll pay more off your principal each month. Another option is to consider choosing a shorter term. Your payment may or may not decrease, but you could possibly reduce years of payments -- saving that amount in interest payments would most likely be significant, plus paying off your mortgage much sooner could be a relief. Contact our Mortgage Servicing team at 517-333-2424 x2610 to discuss what Streamline Refinance options may be available to you.
The cost of a mortgage Streamline Refinance for members occupying their home as a primary or secondary residence is $1,250 for loan amounts up to $250,000, $1,500 for loan amounts $250,001-$500,000, and $2,000 for conventional loans over $500,000. If you have a Jumbo Mortgage or a Non-Owner Occupied mortgage the fees may be higher. The fee specific to your Streamline Refinance offer will be shown with the offer prior to acceptance.
With a Streamline Refinance, your mortgage term will stay the same as it is currently, or you can opt for a shorter term. For example, you have a 30-year mortgage and have paid for 7 years. You could continue with the original 30-year term, with a lower rate for the next 23 years. Or, you can choose to decrease your term to a 10-, 15-, or 20-year mortgage, possibly at the lower rate.
Your personalized access code can be found in your email inbox. If you have questions about refinancing, visit a branch for more assistance or contact us at 800-678-4968, ext. 2610.
A mortgage pre-approval means your application has received an initial review and approval. In many cases, our online application system can issue an immediate pre-approval. You may be asked to provide some basic financial documentation such as paystubs and W-2's. The loan officer will review your credit report and application to determine your ability to repay, credit worthiness, and the terms requested. A pre-approval letter from your loan officer demonstrates to the real estate agents and the sellers that you are a serious and qualified buyer. Mortgage pre-approvals are good for 120 days from the date of the credit application.
You will need to schedule an inspection, order an appraisal, and request a homeowners insurance quote.
After you have received an accepted offer, determine if you will have a home inspection for the structure and pests, as well as a radon test. After the inspection has been completed we will order the appraisal and title work.
You will also want to begin obtaining homeowners insurance quotes early. This will give you adequate time to compare quotes and determine if your insurance agent will need to visit the property.
View additional information on funds needed for closing and view some helpful reminders.
This loan may be perfect for you if you are a:
If you have questions about qualification, contact the Mortgage Department at 517-333-2424.
This loan may be perfect for you if you are associated with or employed in the following fields:
Also including:
If you have questions about qualification, contact the Mortgage Department directly at 517-333-2424
The State of Michigan is offering a tax deduction on dividend earnings for savings accounts of first time home buyers when funds are used for a first time home purchase. Members can save and use these funds toward a down payment of up to $50,000 through 2026. This program potentially allows first time home buyers to not have to pay income tax on the account earnings if their tax return is filed with supporting documentation.
For more information about this program, click here.
The Streamline Refinance maintains the principal balance of your loan and cannot be used to borrow from the equity in your home. Members can apply for a cash-out mortgage refinance to refinance their current mortgage and borrow additional funds from the equity in the home. Additionally, a SmartLineSM Home Equity Line of Credit can be used to borrow from the equity in your home without refinancing your current mortgage. For some members, it may make sense to consider both a Streamline Refinance to lower the mortgage interest rate and a SmartLineSM Home Equity Line of Credit to borrow from the equity in the home.
For first mortgage lien placement, use the following information:
Michigan State University FCU
ISAOA
PO Box 408
Carmel IN 46082
The address for second mortgagee clauses is:
Michigan State University Federal Credit Union, ISAOA
PO Box 2505
East Lansing, MI 48826-2505
