If you’re in the market for a new home purchase or looking to refinance your current mortgage, it’s vital to know the mortgage rates lenders are offering. State Employees’ Credit Union (SECU) is one financial institution that consistently has competitive rates and a comprehensive set of mortgage products. Catering to the citizens of North Carolina, SECU offers accessible and affordable financing through a member-oriented service structure. In this article, we’ll look at SECU mortgage rates, types of mortgages, factors affecting rates, and how SECU stacks up against other lenders.
What Are SECU Mortgage Rates?
SECU mortgage rates are the interest rates that the credit union charges on its home loans. These rates are what help calculate how much interest you will pay throughout the life of your mortgage. As a not-for-profit institution, SECU is able to provide its members fixed and adjustable-rate mortgages at interest rates typically lower than average. Instead of searching for shareholder profits, SECU pays dividends back to members through higher rates and lower fees.
By 2025, SECU’s mortgage rates for a 30-year fixed loan typically vary between 6.25% and 6.75% APR, based on market conditions, the borrower’s credit profile and the loan amount. Rates for shorter-term mortgages, such as 15-year loans, can vary from 5.75% to 6.25% APR.
Types of Mortgage Loans Offered by SECU
SECU provides several different mortgage loan options designed to meet its members’ varying needs:
Conventional Fixed-Rate Mortgages
These are the most common kinds of home loans. With a fixed-rate mortgage, the interest rate stays constant for the life of the loan. This option gives long-term security and is perfect for buyers who intend to live in their homes for several years.
Adjustable-Rate Mortgages (ARMs)
With ARMs, you usually receive a lower introductory interest rate for a fixed number of years (e.g., 5, 7, or 10), then the rate is adjusted every year. These are common for homeowners who intend to sell or refinance before the adjustable period starts.
First-Time Homebuyer Programs
SECU offers many different mortgage programs for first-time buyers that can include lower down payments, lower closing costs, and homebuyer education.
Jumbo Loans
For home purchases above conforming loan limits, SECU offers jumbo loans with competitive rates and flexible repayment terms.
Refinancing Options
If you currently have a home and wish to lower your interest rate, reduce the monthly payment, or access home equity, SECU has a variety of refinancing options available.
Factors Influencing SECU Mortgage Rates
Like all lenders, SECU uses several key factors when setting its mortgage rates:
Credit Score
Your credit score is another big factor. Higher scores usually qualify you for lower interest rates. SECU typically prefers model credit scores of 700 or above but may have options available for borrowers with lower scores.
Loan Amount
Your loan size has a corresponding effect on the rate. Loans for very small or very large amounts may incur slightly higher rates.
Down Payment
A bigger down payment can lower your mortgage rate. Putting 20% down or more can also help you skip private mortgage insurance (PMI), which would further reduce your monthly expense.
Loan Term
Shorter terms tend to translate into lower interest rates and higher monthly payments. A 15-year loan, for instance, will typically have an interest rate that is 0.5% to 1% lower than a 30-year loan.
Market Conditions
SECU’s mortgage rates are affected by national economic factors, inflation, decisions about interest rates by the Federal Reserve and the housing market.
How SECU Compares to Other Lenders
SECU typically offers better rates than banks and other credit unions particularly for those in NC. Here’s what makes SECU a formidable competition:
- Lower Fees: SECU is a not-for-profit so they have low closing costs and origination fees.
- No Hidden Charges: All rates and fees are clearly disclosed by SECU.
- White-Glove Service: Members receive local, member-first service.
- Educational Resources: SECU offers its members guides, calculators and workshops to make informed decisions.
SECU’s mortgage products aren’t available to everyone, though. Available only to North Carolina state employees, their families, and eligible affiliates. Lastly, SECU may not provide the wide range of specialized loan options that some bigger banks do, like VA construction loans, for instance, which allow qualified veterans to build new homes under favorable terms.
How to Get the Best SECU Mortgage Rate
Here are some tips to help you land the best mortgage rate from SECU:
- Increased Your Credit Score: Pay down debts, do not develop new lines of credit, and check your credit report for error and discrepancies.
- Save for a Larger Down Payment: A larger down payment reduces your loan-to-value ratio (LTV) and helps you qualify for better rates.
- Lock in Your Rate: Mortgage rates vary from day to day. If you see a good rate, you may want to lock it while you close on the loan.
- Review All Loan Products: Contact an SECU loan officer to discuss which loan product fits your needs.
- Compare Offers: Even if you’re committed to SECU, it’s smart to compare their offer to at least two other lenders.
Final Thoughts
Mortgage rates with SECU are among the very best in the state of North Carolina, particularly for member with an eye out for stable financing from a community lender. So with the different loan types, guidance, and stellar transparency, SECU is a top pick for the new homebuyer and for the seasoned pro. Whether purchasing your first home, refinancing an existing mortgage or investigating long-term financial planning SECU has the tools and options with which to support your goals.
Never skip taking the time to understand your own financial situation, comparing options, or asking questions before choosing a mortgage. Mortgage choices are long-term commitments and securing the right rate can save you thousands over the life of the loan.