PMI is protection for the lender against loss if a borrower defaults. Typically for Conventional loans, PMI is required if your down payment is less than 20% of the purchase price. For example, on a purchase price of $100,000, PMI would be required if you put less than $20,000 (20% of $100,000) as a down payment. Other types of loans such as FHA, VA, and USDA have similar versions of PMI.
An appraisal is a report made by a qualified person, who sets forth an opinion or estimate of property value. Among other considerations of value, the appraisal uses recent local real estate sales activity as a major basis for valuation.
Closing costs cover all the fees and expenses associated with a loan transaction. Closing costs may include fees for an appraisal, credit report, title insurance, survey, and points. Closing costs vary depending upon the loan product.
Although each situation is different, there are several reasons to refinance including:
- To lower your monthly principal and interest payments.
- To move to a secure, fixed rate loan.
- To take cash out of the equity in your home.
For more information on refinancing your home, call 402-323-1128 in Lincoln, or toll-free 1-800-297-2837.
- Conventional Loans, including Fixed Rate and Jumbo Loans
- VA Loans, administered by the Department of Veteran Affairs
- FHA Loans, through the Federal Housing Administration
You can access your funds any time you choose, for any purpose. Home equity lines of credit are often used for larger purchases like home improvement, college tuition, automobile or second home purchases, or the consolidation of high interest-rate debt.
Both a Home Equity Loan and a Home Equity Line of Credit (HELOC) are secured by the equity in your home.
A Home Equity Loan has a fixed rate, payment and term.
A HELOC works like any other revolving line of credit and is very similar to a credit card. It allows a homeowner to use the equity in his/her home on an ongoing basis. You can easily access your HELOC through your existing UBT checking account via online or automatic transfers, or set up a separate HELOC checking account for convenient access through a HELOC Visa Debit Card. The interest rate on our HELOC is variable and will change from time to time.
Please consult your tax advisor regarding the deductibility of interest for home improvements.
A Home Equity Line of Credit (HELOC) is a revolving loan that provides you with the ability to borrow funds at the time and in the amount you choose, up to a maximum credit limit for which you have been approved. A HELOC is secured by the equity in your home. You can easily access your HELOC through your existing UBT checking account via online or automatic transfers, or set up a separate HELOC checking account for convenient access through a HELOC Visa Debit Card.
Yes, you or your builder will provide Union Bank with blueprints, a new home specification sheet, and contract. We will then arrange for an appraisal based on these plans and specs.
Your construction loan functions like a line of credit. You only pay interest on what you “use.” Your builder will submit draws monthly.
Once your home is complete your permanent mortgage loan (30, 20 or 15 year fixed) is nothing more than a refinance of the construction loan.