309.661.1166
Mortgage Loans
as low as
3.75% APR
 
New/Used Auto
as low as
1.89% APR
 
Personal Loan
as low as
6.99% APR
 
VISA Credit Cards
as low as
8.99% APR
 
Share Certificates
as much as
1.27% APY
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Mortgage FAQs

Whether you are new to the mortgage process or an old pro, we all have questions about our loans from time to time.

Our Mortgage Lending Team has taken the time to answer many of the most common questions, so click on the links to learn more. And, of course, we’re always willing to answer any additional questions you have … big or small.

Call us today at 309.661.1166.

Mortgage Loan Questions


Questions And Answers

Why is the interest payment on my loan different from month to month?

Interest is computed daily on the unpaid principal balance. Each time a payment is made, the balance changes and so does the interest payment.

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What are the closing costs for mortgage loans?

Homebuyers will pay about $1200 in closing costs.

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What are the closing costs for home equity loans?

Closing costs are about $200 for a Home Equity Loan.

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Does MICU do mortgage loans for rental properties?

No. We only finance owner-occupied residences.

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Does MICU do commercial loans?

No.

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What information is needed to apply for a mortgage?

Bring pay stubs covering the previous 30 days, the previous two years’ W-2 income tax forms. If self employed or a commissioned employee, bring federal tax returns from the previous two years and the past three months statements for any deposit accounts (checking, savings, mutual funds,etc.)

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What information is needed for a home equity loan?

Bring your two most recent pay stubs. If you are a self employed or commissioned employee, bring federal tax returns from the previous two years.

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Where can I get basic, straightforward home-buying advice on the web?

You've come to the right place! Check the Home Buying Advice page right here on our website for professional advice and insight, or check our Mortgage Glossary to help you understand the terms that get tossed around when you’re talking to industry insiders like bankers and realtors.

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At what stage of the home-buying process should I visit my credit union?

It’s best to come to MICU and talk to a Mortgage Loan Officer before you start looking at houses. You can get pre-qualified (for free) or even pre-approved, and then you’ll know for sure how much house you can afford. Pre-approval saves you time and lets the sellers know that you’re serious, since you’ve already secured your loan.

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What is a first mortgage?

A first mortgage is exactly what it says it is - the first loan on a certain piece of property. No other lien has been taken out on this home. When you first buy a house, the loan you typically receive is a first mortgage.

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What is a second mortgage?

A second mortgage is also what it says - the second loan against a specific piece of property. Consider this example: Let's say you have a first mortgage on your home. The value is $100,000 and you have a $60,000 balance left to pay on your loan. The $40,000 difference is considered equity, or the part of the home that you own outright. If you want to borrow against that $40,000, you would be taking out a second mortgage on the home in order to do so. Why borrow against this equity? Most of the time the interest rate you pay on your mortgage is lower than that on other types of loans. Interest is also usually tax deductible for a first or second mortgage, but not necessarily for a car loan or a credit card. (Consult your tax advisor for more information on tax deductibility and home loans.)

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What does it mean to 'sell my mortgage on the secondary market'?

Fear not - This phrase is not nearly as ominous as it sounds. Frequently, your credit union can get you an extremely competitive rate on the secondary market. This is simply a network of large mortgage lenders that work with the credit union to deliver low rates to borrowers. If the member chooses, they can finance their home loan with a secondary market lender, and can do so through the credit union. The credit union may technically hold the loan for a very short period of time before 'selling it' to this other lender. The member often makes their loan payments to and receives loan servicing from this secondary market lender.

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Do you utilize FHA or Conventional loans or both? Please advise - thank you!

Mid-Illini Credit Union specializes in offering conventional mortgages at competitive rates for our members.

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Do you use both FHA and Conventional Loans? Please advise - thank you!

At this time, Mid-Illini Credit Union offers conventional mortgage loans.

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