Navy Federal Credit Union Has Programs To Make Homeowning More Affordable

Navy Federal Credit Union, which has
a branch in Saratoga Springs, is offering
specialized programs aimed at making home
ownership affordable for its members, despite
rising home prices and mortgage rates.

NFCU officials said many of its members–
the U.S. Armed Forces and their
families–live in geographic areas where
home prices are on the rise. Purchasers are
becoming challenged to find homes for sale
at a price below jumbo mortgage thresholds.

“Rising home prices, especially in our
core markets, are making it more difficult
for creditworthy homebuyers,” said Katie
Miller, vice president of mortgage products
at Navy Federal.” “We are responding to our
members’ needs by keeping our jumbos in
line with our conforming mortgage rates.”

Prices in some of the credit union’s top markets have increased significantly in the past three months.

“Price appreciation has been significant in many markets, and several factors are at play,” said Alan MacEachin, the credit union’s corporate economist. “The supply of homes on the market remains tight while demand continues to grow. The economy continues to improve, the jobs market is strengthening, and mortgage rates, while off their record lows, remain attractive by historical standards. Down the road however, potential changes such as a reduced federal government role in housing finance and the eventual dissolution of Fannie Mae and Freddie Mac, could increase home loan borrowing costs.”

The credit union offers its fixed jumbo mortgage rate to reduce the monthly payments for families looking to purchase single-family homes in some of the country’s more expensive markets.

“Providing affordable mortgage products designed to meet each member’s budget is a top priority at Navy Federal,” said Miller. “Rates are rising, but they’re still historically low. We are advising our members that this is still an excellent time to buy–but the mortgage environment is changing quickly.”

Navy Federal’s new rate (as low as 4.125 percent) on a jumbo 30-year fixed mortgage is expected to save a member looking to purchase a $700,000 home $1,236 annually compared to the previous interest rate of 4.375 percent, officials said.

Despite the changes in the housing market, Navy Federal’s mortgage originations are still at an all time high.

The credit union said it booked nearly $8 billion in loan production through the month of July. In addition to jumbo mortgage loans, VA and other conventional loans are part of the portfolio. Navy Federal also makes $2,500 available to members to help with closing costs on purchases, and the loans allow up to six percent of the purchase price to come from the seller.

Navy Federal Credit Union is the world’s largest credit union with $54 billion in assets, 4 million members, 231 branches, and a work force of over 11,000 employees worldwide. It serves all Department of Defense and Coast Guard Active Duty, civilian, and contractor personnel and their families. For additional information about Navy Federal, visit www.navyfederal.org.