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Mike Steele
Home Loan Advisor
NMLS# 1052927

8945 Cal Center Drive
Sacramento, CA 95826

(949) 510-3258


Applied before 12/27/2019 Check Status

Applied on/after 12/27/2019 Check Status


Getting to know me

I’ve been helping people secure home financing in Orange County and across the state for over 25 years. My mission is to help identify the right financing solution and empower members throughout the home buying process. My commitment is to always be available for members, now and for many years to come. Read More >

Types of Loans

Fixed Rate Mortgage
A fixed-rate mortgage has an interest rate and monthly payments that never change. This may be a good choice if you prefer the stability of a consistent payment amount or if you plan to stay in your home for a long period of time. Fixed rate mortgages have historically been the most popular type of financing and the most common term is 30 years. When you choose a shorter term your monthly payments will be higher but you will be able to pay off the loan in a shorter amount of time, and consequently pay less interest. As a rule of thumb, it may be harder to qualify for a fixed-rate loan than for an adjustable-rate loan. When interest rates are low, and likely to rise over the long term, a fixed-rate loan may be a good choice because you can lock in the rate for the life of your loan.

Adjustable-Rate Mortgage (ARM)
The interest rate on an ARM changes and, therefore, so will your payment. Typically ARMs have a period of time where the interest rate is fixed, which can range from one month to one year in length. This means your rate and payment could adjust as frequently as every month or just once a year. When it comes to ARMs, the basic rule to remember is that the longer you ask the lender to charge you a specific rate, or the longer the rate is fixed, the more expensive the loan. ARM rates tend to be lower initially than fixed-rate mortgages, and are a good choice if you are looking for a low initial payment. During times of declining interest rates, ARM payments have actually decreased when they adjusted, but it is more typical for ARM payments to rise when they adjust.

Golden 1 ARMs, which are also referred to as Hybrid ARMs, offer both a low initial rate and fixed payments for a longer period of time (3, 5, 7, or 10 years). Hybrid ARMs have different benefits for different people depending on the type of property, goals and overall financial picture. To fully understand all the pros and cons, please talk to one of our experienced Home Loan Advisors.

Jumbo Loan
Each year Fannie Mae, Freddie Mac, and their regulator, the Federal Housing Finance Agency (FHFA), set a maximum amount for loans that they will buy from lenders. Currently conventional loans, which are the most common kinds of loans, have a limit of $484,350, although some limits are higher in high-cost areas. Since these limits may not be high enough for some buyers, they need to get a jumbo loan to purchase a home. A jumbo loan is simply a loan amount that is larger than the current loan limit for a specific area. The cost of obtaining a jumbo mortgage is generally higher than the cost of obtaining other loans.

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