Homebuyers can boost their buying power with Tech CU’s new 5/1 ARM
San Jose, CA (November 17, 2009) — Technology Credit Union (Tech CU) has announced it now offers adjustable rate home mortgages up to $1 million for buyers seeking an affordable home loan in the Bay Area’s high-priced housing market.
In today’s stricter lending environment, it’s become difficult for buyers to get financing on a jumbo mortgage loan (a loan over $729,750), but Tech CU’s new 5/1 ARM up to $1 million offers a highly competitive start rate that doesn’t adjust for five years, giving those who qualify more buying power along with peace of mind.
For the last several years, adjustable rate mortgages have developed somewhat of a negative reputation, but today’s ARM is serving a far different market than it was a year or so ago, according to Steve Donahue, Tech CU’s assistant vice president of Mortgage Origination. Gone are the days when lower-income buyers could reach for an ARM to make a home purchase affordable. These days, tighter underwriting standards often requiring a 20 percent down payment have transformed the adjustable loan into a high-end product best suited for people with sterling credit and significant resources.
“It’s a great time to take advantage of this type of loan, if you can get it,” said Donahue. “When home prices and loan rates are at historic lows, you could end up getting a lot more home for your money, and keep more money in your pocket too.”
Those who are considering a home purchase can also take advantage of an extension on the tax credit of up to $8,000 for qualified first-time homebuyers purchasing a principal residence through April 30, 2010. There is also a tax credit of up to $6,500 for qualified, repeat homebuyers. For more information and income restrictions, go to www.federalhousingtaxcredit.com.
For more information on all Tech CU mortgages, go to www.techcu.com or click here.
ABOUT TECHNOLOGY CREDIT UNIONTechnology Credit Union is a full-service, financial institution serving individuals who work, live, go to school or regularly worship in Santa Clara, Alameda, Contra Costa, Santa Cruz, San Mateo and San Francisco counties. Tech CU was started in 1960 and is now among the top 1 percent of the nation’s largest credit unions. It is recognized as one of the best managed and strongest financial institutions in the country, as indicated by Tech CU’s 5-star rating from Bauer Financial, the nation’s largest independent rating service for banks and credit unions. With more than 78,000 members, over $1 billion in assets and 10 full-service branches around the Bay Area, Tech CU is a leader in the credit union industry.
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