Mortgage Lending

Adjustable Rate Mortgage (ARM)

The credit union offers unique Adjustable Rate Mortgage (ARM) products to purchase or refinance your primary residence, second home and rental property for members who reside in and for properties located in North Carolina only. The maximum loan amount and interest rate depends on many factors including the purpose of the loan, the type of the loan, number of dwelling units, and occupancy status. Funds are collected with each payment, in addition to your principal and interest payment, to allow for the disbursement of the estimated annual tax and insurance premiums that will be due. These funds are placed in an escrow account until needed and earn dividends equal to the share account rate. Payments may be made directly to the credit union, through Payroll Deduction or Funds Transfer.

5-Year Adjustable Rate Mortgage

Because the interest rate may only be adjusted every five years, this product offers additional protection against rising rates.1 The rate may not change by more than 2% every five years or 8% over the life of the loan.

% Initial Rate for 30-year terms with 80% or less loan-to-value (% APR2) Fully Indexed Rate: 5.25% Calculate Payment  Future rates and payments determined based on adding a margin of 3.00% to the index (5 Year Constant Maturity Treasury Yield rounded up to the next highest one-eighth of one percentage point). Subject to a floor rate of 5.25% and maximum adjustments every 5 years of 2% with a lifetime cap of 8%. The recent index is 1.88%.

% Initial Rate for 30-year terms with 80.1% to 90% loan-to-value (% APR2) Fully Indexed Rate: 5.75% Calculate Payment  Future rates and payments determined based on adding a margin of 3.50% to the index (5 Year Constant Maturity Treasury Yield rounded up to the next highest one-eighth of one percentage point). Subject to a floor rate of 5.75% and maximum adjustments every 5 years of 2% with a lifetime cap of 8%. The recent index is 1.88%.

% Initial Rate for 30-year terms with 90.1% to 95% loan-to-value (% APR2) Fully Indexed Rate: 7.00% Calculate Payment  Future rates and payments determined based on adding a margin of 4.25% to the index (5 Year Constant Maturity Treasury Yield rounded up to the next highest one-eighth of one percentage point). Subject to a floor rate of 7.00% and maximum adjustments every 5 years of 2% with a lifetime cap of 8%. The recent index is 1.88%.

  • Maximum term of 30 years
  • Origination fee 1.00% of loan amount
  • No application fees or credit report fees
  • Private mortgage insurance is not required
  • Home inspections required on all loans with a loan-to-value greater than 80%. Member is responsible for inspections costs.
  • Property must be in North Carolina
  • Maximum loan amount of $225,000
  • For purchases, maximum financing and loan-to-value financing tier determined based on the lesser of the sales price or appraised value
  • Up to 95% financing3 available for purchases and refinances of primary residences only with no cash out. Cash out is defined as any funds that exceed the balances owed on the first or second mortgages being paid off
  • Up to 80% financing for purchases and refinances of second homes. Only one second home per member is eligible for financing.
  • Up to 80% financing for purchase of a rental property or for a no cash-out refinance of a rental property; further limited to 65% loan-to-value for cash-out refinances. Each member may only have one rental property.
  • Cash-out refinances are allowed on primary and second homes
  • Maximum of three properties may be financed with the credit union; with one primary, one rental and one second home
  • Only one mortgage loan may be greater than an 80% loan to value (LTV)
  • Homeowners counseling always required unless the members have had home ownership in the previous 24 months
  • Manufactured homes can typically serve as collateral but must be the primary residence of the borrower and will be further limited by term and product
  • Initial rates subject to change daily

Fixed Rate Mortgage

The credit union offers Fixed Rate Mortgage products to purchase or refinance your primary residence for members who reside in and for properties located in North Carolina only. The maximum loan amount, as it relates to the property value or the purchase price, and interest rate depend on many factors including the purpose of the loan, the type of loan, number of dwelling units, and occupancy status. Private mortgage insurance is not required on any of our fixed rate mortgages. Funds are collected with each payment, in addition to your principal and interest payment, to allow for the disbursement of the estimated annual property tax and insurance premiums that will be due. These funds are placed in an escrow account until the taxes and insurance bills are due and earn dividends equal to the share account rate.

10 Year Term
Fixed rate of % (% APR2) with a 90% or less loan-to-value. Calculate Payment 

15 Year Term
Fixed rate of % (% APR2) with a 90% or less loan-to-value. Calculate Payment 

  • Available only for the purchases or refinances of primary residences
  • Origination fee 1.00% of loan amount
  • No application fees or credit report fees
  • Private mortgage insurance is not required
  • Home inspections required on all loans with a loan-to-value greater than 80%. Member is responsible for inspections costs.
  • Property must be located in North Carolina
  • Maximum loan amount of $125,000.
  • For purchases, maximum financing and loan-to-value financing tier determined based on the lesser of the sales price or appraised value. Member is responsible for appraisal cost.
  • Up to 90% financing1 available for purchases and refinances3 of primary residences only
  • Cash-out refinances3 are allowed on primary homes, not to exceed 80% loan-to-value, with maximum cash out of $50,000.
  • Maximum of three properties may be financed with the credit union; with one primary, one rental and one second home
  • Only one mortgage loan may be greater than an 80% loan to value (LTV)
  • Homeowners’ counseling is always required unless the members have owned a home in the preceding 24 months
  • Initial rates subject to change daily



1 For a purchase, the member must always contribute a down payment of the greater of either: (i) $5,000 or (ii) 5% of the purchase price or appraised value, (whichever is less between the purchase price or appraised value).
2 APR =Annual Percentage Rate. APR is your cost over the loan term expressed as a rate. This is not your interest rate.
3 Cash out is defined as any funds that exceed the balances owed on the first and/or second mortgages being paid off, plus closing costs



Your Home Loan Toolkit
*Quoted rates, dividends, annual percentage yields (APY) and rates (APR) are subject to change daily at the discretion of the Board of Directors. © Greater Kinston Credit Union