Faq's
Frequently Asked Questions 1) Auto Loans: New and Used Vehicles Auto Loans: New and Used Vehicles 1 (a)Financing Questions and Answers: Q: What is my credit score? A: If you go to any MCCU location with your valid ID, we will pull your current credit report complete with your score and give you a copy. A Financial Service Representative will be happy to review the credit report and make suggestions for increasing your score and saving you money. You may also visit www.annualcreditreport.com to obtain a free copy of your Equifax, Experian and TransUnion credit reports once per year. This copy will not include a credit score however you can purchase a credit score online at these websites. A great tool for getting suggestions on increasing your credit score is www.myfico.com. There is a charge for this website but it will allow you to virtually add and remove trade lines and balances to see how this would impact your score. Q: Does MCCU make auto loans to first time buyers? A: MCCU would be happy to finance your first car with verifiable income and a down payment or qualified co-maker. Q: Would it be better for me to finance through the credit union or take the low manufacturer’s rate? A: Credit Union financing traditionally offers the best value. In most cases, you will forego your manufacturers rebate to obtain a low rate. Also, the “low” rate is usually for a much shorter period of time and only on new vehicles. By taking the rebate and applying it to your down payment, you will finance a lower amount. There are no pre-payment penalties with credit union financing so you are free to make additional payments or pay off early and save money. Q: What if I have a foreign credit report? A: MCCU may be able to obtain a Canadian Credit Report for approval. Credit reports for other countries tend to be expensive and take additional time to obtain. MCCU would be happy to consider your employment history and down payment to help get you into a new car. Typically, with stable employment and 20% cash down MCCU can get you into a car with a term of up to 60 months. Q: Can I get a loan with MCCU if I have bad credit? A: MCCU will make every effort to approve your loan. The credit union has a “second chance” financing option. In addition, sometimes a down payment or a qualified co-maker will assist you in getting approved. MCCU also partners with Balance Financial Fitness Program and you can obtain financial assistance at 1-888-456-2227 to help you get your finances back on track. Q: What are the insurance requirements for a collateral loan? A: You are required to keep full coverage insurance which includes liability, comprehensive and collision with deductibles of $1,000 or less. The lien holder should read: Members Choice Credit Union, P. O. Box 24883, Fort Worth, TX 76124. Q: Can you finance my company vehicles? A: MCCU does offer Business Loans. Please contact a Financial Service Representative to get started on the application. We can also assist you in getting the vehicle titled in your business name. Don’t forget to use one of our Preferred Dealers to purchase your company vehicles for the best pricing. Q: Will MCCU finance a purchase of a vehicle from another state? A: As long as MCCU can obtain the title with a perfected lien you may purchase a vehicle from any of the 50 United States of America. Call a MCCU loan representative to get specific instructions depending on the state in which the title is held. Q: What if I live in a state other than Texas and wish to finance a vehicle with MCCU? A: MCCU will make you a loan no matter which of the 50 United States you live in as long as you qualify for the loan and MCCU can obtain the title with a lien. Each state handles title work a little differently, so call a MCCU representative for details. Q: If my spouse is out of town can I initiate a loan with a Power of Attorney? A: MCCU does not typically accept a Power of Attorney to incur new debt. MCCU does however close loans via Fed Ex, Fax and Email so in most cases we can reach the borrower without the need of a POA. Q: What is a Smart Choice Loan? A: MCCU has a lease-like loan called “Smart Choice”. The Smart Choice loan is a great way to get into the car of your dreams at a lower monthly payment and allows you to return the vehicle, trade it in or sell it at the end of the term. There is a one time fee of $795 that can be added into your loan and includes your GAP insurance and the Guaranteed Residual Premium. This product is great when you need to get a loan that will absorb some negative equity. Contact a Financial Service Representative today to get more details. Go to www.memberschoicecars.com/smartchoice Q: What if I move to another state and I still have my loan with MCCU in Texas? A: Once you have moved, visit the local Department of Motor Vehicles. They will contact MCCU directly and replace your Texas title with a new title in the state in which you reside. MCCU will still have a first lien on the vehicle. Q: What do I do if I have an insurance check made payable to MCCU on my vehicle for damages? A: If the repair work is complete, bring your invoice and the vehicle to any MCCU location. A representative can inspect your vehicle and the invoice and make the check payable to the repair shop. If the repairs are minor and you do not wish to complete the work you may apply the entire insurance check to your loan balance. 1 (b) Preferred Dealer Information: Q: What is the benefit of using a MCCU Preferred Dealer? A: A MCCU Preferred Dealer will give you a straightforward, better price from the beginning. The dealer knows you are a pre-approved credit union member ready to purchase a vehicle. Q: What is the difference between a MCCU Preferred Dealer and any other dealer? A: The dealers on the MCCU Preferred Dealer list are approved by the credit union and have agreed to give our Members special pricing to be in our program. You may purchase from any dealer but in many cases there is better pricing with a Preferred Dealer. Q: Can I get pre-approved before I go to the dealer? A: Absolutely, and MCCU recommends that you get pre-approved to save you time later. Simply apply with one of our Financial Service Representatives or online and receive a pre-approval certificate to take to the dealership. *Pre-approval link Q: Does my pre-approval or interest rate expire? A: Your pre-approval is good for 90 days and the rate is guaranteed for the first 30 days. Should the rates go down while you are shopping, you will always get the new lower rate when you fund. Should the rates go up while you are shopping your approved rate will be guaranteed for the first 30 days after approval. Q: What do I do when visiting a Preferred Dealer? A: Call ahead or email and make an appointment with one of the authorized Dealer Representatives to make sure you get the best deal. Take your pre-approval certificate with you to expedite the delivery of your vehicle. Always ask to speak to the authorized Dealer representative and identify yourself as a credit union member. You must deal with the representative on our Preferred Dealer List in order to receive the listed special. *Link to Preferred Dealer List Q: Do I have to finance with MCCU to use the Preferred Dealer list? A: No, you may purchase through a Preferred Dealer even if you pay cash for the vehicle. This is a benefit for MCCU members. Q: What is Guaranteed Asset Protection (GAP)? A: GAP offers protection against financial losses; in the event your vehicle is deemed a total loss due to an accident or theft, your auto insurance policy will only cover the fair market or actual cash value of the vehicle. Many times, the remaining balance on your loan will be more than the insurance settlement; the difference or "GAP" could cost you thousands of dollars. Without GAP, you may end up simultaneously paying for a totaled vehicle and its replacement GAP covers the difference and up to $1,000 of the primary insurance deductible. Q: What is a Vehicle Service Contract? A: Approximately 40% of all car buyers in the United States choose to purchase an additional maintenance warranty or VSC when buying an automobile. On a claims frequency basis, you are more likely to utilize your vehicle service contract than GAP, Life, and Disability combined . Our members that purchased a VSC though the credit union have made over one million dollars in claims. VSC Benefits: Contracts honored at any licensed repair facility in the U.S. and Canada Rental car, towing and trip interruption coverage included Claims paid directly to repair facility with corporate credit card Coverage includes parts and labor Insured by an "A" Excellent Rated Insurance Company Transferable to new owner for increased resale value Peace of mind with protection from the high cost of automotive repairs Q: What is Multi-Shield Protection Plan? A: Multi-Shield provides you 4 types of coverage: R.O.A.D. InTire This program is a comprehensive tire and wheel repair and replacement guarantee. It is less expensive than traditional road hazard coverage; there are no limits to the number of claims you can make on your tires. All replacement tires purchased are covered for the term of the contract. In addition, you can have repairs and replacements completed at the location of your choice. InTire can also be offered as a standalone product. Paintless Dent Repair "PDR" is the highly-skilled craft of removing door dings, minor dents and hail damage from your car without the use of sand paper, body fillers or paints. Besides the obvious and bothersome cosmetic appearance, minor dents, door dings and scratches caused by road debris, shopping carts or other car doors in a parking lot, can significantly affect the value of your vehicle at either the time of trade-in or lease return. In the past, the only alternative was to take your car to a body shop in order to have them repair the damage which caused the loss of valuable time, car rental, and the high cost for the minor repairs. Paintless dent removal, paintless dent repair and paintless dent removal tools, combined with the skills of a technician who possess the craftsmanship, can save you hundreds of dollars. Windshield Repair Q: Should I purchase Payment Protection? A: You should absolutely protect your payment and allow yourself peace of mind. Payment Protection can be added to your loan without increasing your monthly payment. This is a great way to protect your budget and your credit score in the event of untimely death, disability due to illness or accident, involuntary unemployment or Family Medical Leave. MCCU offers a wide variety of packages for individual and joint borrowers and would be happy to assist you in adding the coverage that fits your needs. This will give you peace of mind and protect your credit score. Buying a Vehicle Here are a few tips when purchasing a vehicle from an individual:
Research the value of the vehicle you wish to purchase. The following websites will help you determine the value:
www.memberschoicecars.com/nada
Have the vehicle inspected by a mechanic. There are also companies such as Auto Exam that can inspect and do car histories on the auto. You can also request detailed information which will include history reports through obtaining a car report. Ask the seller if they have any vehicle history reports and/or maintenance records. www.memberschoicecars.com/autocheck
If you decide to purchase the auto you must title it within 20 working days from the date of sale. You will need the following documents to complete the transaction:
130U form – Application for Certificate of Title
www.dot.state.tx.us (this form will need to be signed by both buyer and seller)
Original Title (signed by both buyer and seller)
Copy of Insurance
Appropriate Fees (title fee, registration fee and sales tax)
Title fee is currently $33.00
Registration fee is $2.50 providing registration is current. Should the registration be expired, you will need to include the total registration fee which you can obtain from the local Department of Motor Vehicle Office. 713-224-1919 Each state is a little different so tax rates and fees will differ.
Sales Tax is currently 6.25% based on either the sales price or the presumptive value (whichever is greater). You will need to determine the presumptive value of the vehicle which can be found on the following website:
http://www.txdot.gov/drivers_vehicles/vehicle_titles/std_presumptive_value.htm Q: How can I research pricing on the vehicle I would like to purchase? A: Go to the NADA/Pre-owned Vehicles tab on the home page, this will take you into NADA and you can determine the value of the vehicle of your choice. Q: Can I build a vehicle on your website? A: Yes, we have partnered with Chrome Systems to help you build the new auto of your dreams. Go to the Research New Vehicles tab on the home page to get started. Q: What are the rebates offered on my vehicle? www.memberschoicecars.com/preferreddealers A: Choose the MCCU Preferred Dealer of your choice and contact the Credit Union Representative. They will be happy to update you on current manufacturer information. You may also access this information with the Social Networking tab on the VRC homepage. Q: If I purchase a vehicle from an individual how much tax do I pay? A: In the state of Texas the rate is the greatest of 6.25% of the sales price or 80% of the presumptive value determined at: www.txdot.gov/drivers_vehicles/vehicle_titles/std_presumptive_value.htm www.memberschoicecars.com/TXDot Q: What if I owe more than the value of my car I want to trade in? A: MCCU can typically finance up to 120% of the value of a vehicle subject to credit approval. Higher Loan to Value ratios may be approved at a slightly higher interest rate. Q: How do I know I am getting the right price for my trade in? A: A dealer will make an offer to you based on the current condition of your vehicle. You may go tohttp://www.memberschoicecars.com/NADA on our home page to get a current trade value of your vehicle before you go shopping. If you are unsure, it is a good idea to visit 2-3 Preferred Dealers and ask them for a “buy bid” for your trade; this way you can compare to make sure you are offered a fair trade. Q: Will I get more money if I sell my car myself? A: If your car is in top notch condition you may be able to sell it for more than trading it in, however, keep in mind that if you trade your vehicle you will only pay sales tax on the difference between the purchase price of the new vehicle and the trade in allowed on the traded vehicle. Sometimes it may be quicker, easier and save you enough in sales tax to make trading the best option. Selling a Vehicle Vehicles are required to be titled in the new buyer’s name within 20 working days from the date of sale. Failing to properly transfer a vehicle out of your name could result in you being held responsible for tickets, violations, and make you liable in the event of an accident. Provide the buyer with a properly signed original title including the date of sale, odometer reading and a signed vehicle application. This form is called an Application for Texas Title (form 130U) and can be found on the following website: www.memberschoicecars.com/TXDot Keep detailed written records of your transaction including contact information for the buyer; ask for identification. Information should include date of sale and vehicle identification number. Remember to give all maintenance records and/or history reports to new owner. Helpful hints: When determining a sales price you can obtain your current value of your vehicle from the following websites: www.memberschoicecars.com/nada Always be sure that your funds are either cash or a certified check If you are selling your vehicle to someone who is financing the purchase and there will be a lien holder, you will need to provide the lien holder with the original signed title, signed title application, copy of registration and a power of attorney form. If your vehicle is financed and you do not have a clear title, you will also need to provide them with payoff information. Have the vehicle inspected by a mechanic Q: Can I use a Certificate of Deposit at another institution? A: The Certificate of Deposit must be held on deposit at MCCU. Talk to any Financial Service Representative and we will be happy to help you transfer your Certificate of Deposit to MCCU. Q: What is the term on a Certificate Loan? A: The maximum repayment period on a Certificate Loan is 60 months or the term of the Certificate, whichever occurs first. Q: What if I default on my Certificate Loan? A: If a Certificate Loan becomes 60 or more days past due, funds will be transferred from the Certificate to pay off the loan. Q: Can I purchase Life Protection on my Certificate Loan? A: You may purchase Life Protection on your loan and this is a great way to protect your savings in the event of untimely death. Q: What type of credit cards do you offer? A: MCCU offers five types of MasterCard products: Master Card Gold, Platinum Cash Rebate, Business Master Card, Life Style Master Card, and Secured Master Card. Q: What is my interest rate? A: Your interest rate is printed on your monthly statement, you can contact MasterCard at 800-442-4757 or Financial Service Representative at the Credit Union would be able to help you. Also, you may view your account at www.gotomycard.com for all your MasterCard information. Q: Can I add an additional user to my MCCU MasterCard? A: Yes, the primary member will complete the form to add someone to the MasterCard, you can either fax it or drop it off; the form will need to be forwarded to the MasterCard Specialistto complete. Q: How much does the Platinum Cash rebate pay? A: You will earn up to 1% cash back on purchases and there’s no annual fee. Q: Can I view my MasterCard on line? A: Yes, go to www.gotomycard.com to view your account and make payments. Q: How can I make my MasterCard payment? A: You may make a payment online under www.gotomycard.com, in person at any MCCU teller window, by mailing it to the address listed on your statement: Mastercard P.O. Box 672051 Dallas, TX 75267-2021 or by phone (a convenience fee applies). Q: Can I set my MasterCard up for Automatic Payment from my account? A: Yes, you will just complete an Automatic payment agreement form and turn in to a Financial Service Representative or teller t any MCCU location. Q: How can I apply for an increase on my MasterCard? A: You can apply for an increase over the phone, online, or in person, just contact a Financial Service Representative at any branch location. Q: Q: Can I transfer a balance from another credit card to my Members Choice MasterCard? A: Yes, if you do not have a MasterCard with MCCU, contact a Financial Service Representative to take the application for you; if you already have a MasterCard, you will complete a Transfer Authorization form and fax in your request to a MasterCard specialist. Q: Is there a fee for balance transfers? A: No, MCCU does not charge its Members a fee for balance transfers. Q: What is my due date on my MasterCard? A: You can view your MasterCard account on line at www.gotomycard.com, a Financial Service Representative can help you with that information, or you may also contact MasterCard 24/7 at 800-442-4757. Q: How do I report my MasterCard Lost/Stolen? A: Please contact MasterCard 800-442-4757 to report lost/stolen MasterCard 24 hours a day. Q: What is my grace period? Home Equity Line of Credit (HELOC) Q: What is the maximum limit that I could have on a Home Equity Line of Credit? A: Your limit is set at 50% of your equity in your home. This is determined by taking your home’s value and multiplying it by 50% and then subtracting your current mortgage balance. Q: What determines my home value? A: The value is determined by the market value/appraised value listed on your current tax statement. You may choose to purchase (at your expense) a certified appraisal if you feel the value will be high enough to benefit you. Q: How do I get an appraisal of my home? A: You can obtain any certified appraiser in your area or you may request that we order one for you. If you choose to have an appraisal ordered through the credit union, the appraisal fee will be collected up prior to the report. Currently, the fee is approximately $300. Q: Are there closing fees on a Home Equity Line of Credit? A: MCCU usually pays closing fees. However, there is a $100 application fee at the time you submit your loan. You may also incur fees depending on whether the loan requires that a title policy be issued. Fees and charges will not exceed 3% of the loan amount. Q: How do I know if a title policy will be required? A: If MCCU will be in first lien position, a title policy will be required. Any time that a title policy is required, the Financial Services Representative will inform you so you can decide whether or not to proceed. Q: How often can I advance on my HELOC? A: You can advance as often as you need; however, minimum advances are $4,000 Q: How do I request an advance on my HELOC? A: Contact your Financial Service Representative (FSR) at the credit union and they will have you complete an advance voucher and have the request processed. This is not an advance that can take place with the tellers or automated banking. Q: If I already have a Home Equity Loan can I have a HELOC as well? A: No, Texas Home Equity guidelines do not permit more than one home equity loan or line of credit at a time. Q: How often can I refinance my HELOC? A: Texas Home Equity guidelines require a one year time frame in between refinances. A lender is not permitted to refinance your loan until after the one year. Q: Can I obtain a HELOC on my rental property? A: HELOC loans are only for your primary residence. You may want to discuss other options for repairs to rental property with a Financial Services Representative. Q: Why do I have to wait 13 days to close my home equity line of credit? A: There is a 12 day cooling off period that is required by Texas state law and does not start until all property owners have signed and submitted the Texas Disclosure and complete loan application to the lender. If all documents are received, processed and all requirements have been met, then closing can take place on or after the 13th day. The 12 day cooling off period is 12 calendar days. Q: Can I waive the 3 day rescission requirement? A: The three day right of rescission allows any one of the borrowers to cancel the loan if they choose to do so and cannot be waived. This three day period is marked by business days; MCCU can count a Saturday but cannot include Sundays or holidays in this time. Q: When can I start advancing on my HELOC? A: You may receive your proceeds after the rescission period has expired, which is the 4th business day after closing. Q: Are there penalties if I pay off my loan early or if I decide to refinance with another lender? A: No, there are no pre-payment penalties on this type of loan. Q: Can I do a HELOC if I live on acreage? A. You can do a home equity loan if you have no more than 10 acres and it is your homestead. Q: Can I do a HELOC if my acreage has agriculture on it? A. No, the loan may not be secured by homestead property that is designated for agricultural use. Q: Does my spouse have to be on the loan with me? A: No, your spouse does not have to sign the promissory note, however, your spouse will need to sign other documents at closing and will have to sign the initial disclosure that is submitted with the application. Q: How long can I finance a HELOC? A: Home equity loans are generally financed in 15 to 20 year terms. The size of the loan might determine the maximum term. However, there is a 10 year draw period. Q: Can I make principal payments on my HELOC? A: Yes, additional principal payments are allowed. The best time to make a principal payment is at the same time you are paying your normal payment. Q: Can I pay ahead a few months on my line of credit? A: These loans require a monthly payment. Therefore, your future payment should never exceed 45 days out. Q: Can I use a HELOC for debt consolidation? A: Yes, you can utilize the proceeds of a credit line for any legal purpose. Q: Can I do a HELOC in another state? A: No, MCCU only does Home Equity loans in the State of Texas. Q: Can I use my existing appraisal? A: You may use an existing appraisal, but it must not be more than one year old. Q: Can you mail the closing documents or fax them to me? A: A HELOC must be closed in the Credit Union office or a Title Company; all parties signing must be present. Q: What is the maximum that I could borrow on a home equity loan? A: You can borrow up to 80% of the equity in your home; this is determined by taking your home’s value, multiplying it by 80% and then subtracting your current mortgage balance. Q: What determines my home value? A: The value of your home is determined by the market value/appraised value listed on your current tax statement. You may also choose to obtain a certified appraisal at your expense. Q: How do I get an appraisal of my home? A: You can obtain any certified appraiser in your area or you may request that we order one for you. If you wish to have an appraisal ordered through the credit union, the appraisal fee will need to be collected prior to ordering the property report. Currently, the fee is approximately $300. Q: Are there closing fees on a Home Equity Loan? A: Generally, MCCU pays closing fees. However, there is a $100 application fee at the time you submit your loan. You also may incur fees depending on whether the loan requires that a title policy be issued. Fees and charges will not exceed 3% of the loan amount. Q: How do I know if a title policy will be required? A: If you are refinancing a large balance and/or the loan will be in a first lien position then a title policy may be required. The title policy fees are usually paid at closing and can be deducted from the loan proceeds. Q: Can I have more than one Home Equity Loan? A: No, Texas Home Equity guidelines do not permit more than one home equity loan at a time. Q: How often can I refinance my Home Equity Loan? A: Texas Home Equity guidelines require a one year time frame in between refinances. A lender is not permitted to accept an application for refinance for one calendar year. Q: Can I obtain a Home Equity Loan on my rental property? A: No, MCCU can only do a home equity loan on your homestead property. Q: Why do I have to wait 13 days to close my Home Equity Loan? A: There is a 12 day cooling period that is required and does not start until all property owners have signed and submitted the Texas Disclosure and completed the Home Equity Loan application. If all documents have been received, processed and all requirements have been met, then closing can take place on or after the 13th calendar day. Q: Can I waive the 3 day rescission requirement? A: No, MCCU must allow you this time to rescind if you choose to do so. Any of the borrowers may rescind within the three day time frame. This time is measured by business days so Sundays and holidays will not count. Q: When do I get my loan proceeds? A: You will receive your proceeds after the rescission period has expired, which is the 4th business day after closing. Q: Are there penalties if I pay off my loan early or if I decide to refinance with another lender? A: No, MCCU does not have any pre-payment penalties. Q: Can I do a Home Equity Loan if I live on acreage? A: You may do a Home Equity Loan if you have no more than 10 acres and it is your homestead. Q: Can I do a home equity loan if my acreage has agriculture on it? A: No, the loan may not be secured by homestead property that is designated for agricultural use. Q: Does my spouse have to be on the loan with me? A: No, your spouse does not have to sign the promissory note, however, your spouse will need to sign other documents at closing and will have to sign the initial disclosure that is submitted with the application. Q: How long can I finance a Home Equity Loan with MCCU? A: Home equity loans are generally financed in 15 to 20 year terms. The size of the loan might determine the maximum term. Q: Can I make additional principal payments on my Home Equity Loan? A: Yes, additional principal payments are allowed. The best time to make a principal payment is at the same time you are paying your normal payment. Q: Can I pay ahead a few months on my loan? A: A payment must always be made monthly; therefore you can pay no more than 45 days ahead. Q: Can I use a Home Equity Loan for debt consolidation? A: Yes, you can utilize the proceeds of a home equity loan for any legal purpose. Q: Can I do a Home Equity Loan on my vacation home in another state? A: No, we are only permitted to do home equity loans in the State of Texas. Q: Can I use my existing appraisal? A: Yes, you can use an existing certified appraisal provided it is not more than one year old. Q: Can you mail the closing documents or fax them to me? A: No, this type of loan must be closed in the credit union office or a title company and all parties must be present. Q: What is the maximum that I can borrow on a home improvement loan? A: You can borrow up to 95% of the equity in your home which is determined by taking your home’s value and multiplying it by 95% and then subtracting your current mortgage balance. Q: What determines my home value? A: The value of your home is determined by the market value/appraised value listed on your current tax statement. You may choose to order a certified appraisal at your expense if you feel it will benefit you with a higher value. Q: How do I get an appraisal of my home? A: You can obtain a certified appraisal in your area or you may request that we order one for you. If you wish to have an appraisal ordered through the credit union, the appraisal fee will need to be collected prior to ordering the property report. Currently, the fee is approximately $300. Q: Are there closing costs on a home improvement loan? A: Generally, MCCU pays closing fees. However, there is a $100 application fee at the time you submit your loan. Q: Can I borrow funds on a home improvement loan and complete improvement myself? A: A contractor is required on these types of loans and a contract must be submitted from that contractor with breakdown of disbursements. MCCU has other loan types that may be helpful for work you wish to do yourself. Q: How long is the process for obtaining a Home Improvement Loan? A: There is a 5 day cooling period requirement that is mandatory before the loan can be closed. This cooling period does not begin until the Residential Construction Contract Disclosure and signed loan applications are received by MCCU; these five days are calendar days. Q: Can I waive the three day rescission requirement so I can begin work immediately? A: No, MCCU must provide you with the three day rescission. These three days are business days so Sundays and Holidays will not count. Q: When can the contractor begin the improvements? A: The contractor may begin on the 4th day. No work may begin and no materials may be delivered until after the three day right of rescission. Q: Are there penalties if I pay off my loan early? A: No, there are no pre-payment penalties on this type of loan. Q: How will the draws be disbursed? A: Checks are made payable to all parties (applicant and contractor). As work is progressing and draws are needed, the applicant and/or contractor will contact the credit union for a draw request. Q: How do you know if the work has actually been completed? A: Prior to final draw being disbursed, all parties will sign a completion certificate indicating the work has been completed. MCCU may inspect the property anytime from the application date through the final funding. Q: What terms are available for Home Improvement Loans? A: Home improvement loans may be financed up to 15 or 20 years depending on the amount of the loan. Q: Can I make principal payments on my Home Improvement Loan? A: Yes, principal payments are allowed. The best time to make a principal payment is at the same time you are paying your normal payment. Q: Can I pay ahead several months on my loan? A: Home Improvement Loans require a monthly payment. You will not be able to pay more than 45 days ahead of schedule. Q: Can I use my existing appraisal? A: You can use an existing certified appraisal, provided it is not more than one year old. Q: Can you mail the closing documents or fax them to me for closing? A: No, Home Improvement Loans must be closed in the Credit Union office and all parties must be present. Q: Can I make a Home Improvement loan if I already have an existing mortgage and home equity loan? A: MCCU does not generally do loans in third lien position. Talk with a Financial Services Representative to discuss other options. Q: How much can I borrow for a home? A: The amount you can borrower to purchase a home is based on your income and monthly debt which will be determined at the time of application. Q: What is a good faith estimate? A: A good faith estimate is a standard form which is intended to be used to compare different offers or quotes from different lenders. The good faith estimate is only an estimate. The final closing costs may be different – sometimes very different. Q: What is an originator fee? A: The amount charged for services performed by the company and/or mortgage company handling the initial application and processing of the loan. Q: How much is the origination fee? A: The origination fee is 1% of the cost of the property purchased. Q: What other fees will I pay? A: The fees usually include origination, appraisal, credit report and processing fees. Q: What is a discount point? A: A discount point is paid to the lender to permanently buy down or lower an interest rate. It is usually a percentage of the loan amount and may be tax deductible. Q: What documents will I need when I make application for a mortgage loan? A: Prior year’s W2s, three recent pay stubs, and two (most recent) bank statements in addition to the Purchase/Sales Agreement on the home you are buying; additional documents may be required. Q: If I refinance my loan with my existing lender, will I have to pay all the closing costs again? A: Typically, yes- there is a cost to process any new loan application. This cost may include fees paid to third parties, such as the appraisal provider, as well as the title and closing providers. In most cases, these costs can be rolled into your new loan, so you are not out of pocket any money. More over, your payment will also usually decrease. Q: What is an Adjustable Rate Mortgage? A: An adjustable rate mortgage (ARM) is considerably different than a fixed rate mortgage. An ARM is a mortgage where the interest rate changes at pre-set intervals, according to rising and falling interest rates and the economy in general. In most cases, the initial interest rate of an ARM is lower than a fixed rate mortgage. However, the interest rate on an ARM is based on a specific index (such as U.S. Treasury Securities) this index reflects the level of interest rates and allows the lender to match the income from your ARM payment against their costs. It is often selected because it is a reliable, familiar financial indicator. Monthly payments are adjusted up or down in relation to the index. Q: What is a fixed rate loan? A: A loan which has an interest rate that remains constant throughout the life of the loan and is usually available for 15, 20 or 30 years. Q: What is a Balloon Loan? A: A balloon loan is a loan that is amortized over a 30-year period but becomes due and payable at the end of a certain term (usually 5, 6, 7, or 10 years); it may be extendable or may roll over into another type of loan. Q: What is an escrow account? A: An escrow account is typically established at the time you close your mortgage loan. This account is held by the lender for the future payments of recurring items relating to the mortgaged property, such as real estate taxes and insurance premiums, as they become due. Lenders usually require you to pay an initial amount for each of those items to start the reserve account at the time of closing. Q: How much money will I save by choosing a 15 year loan rather than a 30 year loan? A: 15-year fixed rate mortgage gives you the ability to own your home free and clear in 15 years. While the monthly payments are somewhat higher than a 30-year loan, the interest rate on the 15-year mortgage is usually a little lower and more important - you´ll pay less than half the total interest cost of the traditional 30-year mortgage. However, if you can´t afford the higher monthly payment of a 15-year mortgage don´t feel alone. Many borrowers find the higher payment out of reach and choose. Use our loan calculator to compare. Q: Are there pre-payment penalties charged for these loan programs? A: MCCU does not charge pre-payment penalties. You can pay off your mortgage any time with no additional charges. Q: What is a lock in agreement? A: A lock in is an agreement by the borrower and the lender which specifies the number of days for which a loan’s interest rate and discount points are guaranteed. If interest rates rise during that period, we are obligated to honor the committed rate: if interest rates fall during that period, the borrower must honor the lock. Q: When can I lock? A: You will have the opportunity to lock in your loan rate when you have found a property. You must contact your loan officer to lock in. This process cannot be done online. Q: What is an 80-10-10 mortgage? A: An 80-10-10 mortgage breaks up the mortgage loan into two separate loans. 80% of the loan is financed as a first mortgage, typically at current competitive rates; 10% of the loan is then in a second mortgage, usually at a slightly higher rate. The final 10% comes from a cash down payment. Advantages of the 80-10-10: Allows you to purchase a home sooner, since you need only 10% down instead of 20%. If you are shopping in an area where home prices are rising, this quicker purchase can ultimately save you money. While you do pay a higher interest rate on the second loan, it´s tax deductible. If you have the 20% down but need the money for moving expenses, furniture, etc., the 80-10-10 gives you additional options. There is of course, more risk involved when you put less money down. If home prices drop, you may end up owing more for the house than its current appraised value. It´s also more complex to refinance later if interest rates decline, since you are managing two loans. Be sure to have your mortgage broker run the numbers for you so you can directly compare the 80-10-10 approach with a more traditional method. A: MCCU can finance a boat, Jet Ski, motorcycle, camper, ATV or snowmobile. If you have something else in mind give us a call. Chances are we have a loan that will fit your needs. Q: Do I need to insure my RV? A: MCCU does require insurance on all types of collateral. This is to protect both you and the Credit Union should a total loss occur. Q: Who can help me with title questions on a boat? A: You may contact the Parks and Wildlife Department at www.tpwd.state.tx.us or 800-792-1112. The address to the main office in Austin is 4200 Smith School Road, Austin, TX, 78744. Q: What is a Share Secured Loan? A: A Share Secured loan is a loan fully secured by the dollars in your MCCU Share Account. The funds in your account will have a hold placed on them in the amount of the loan; the hold will be reduced and your share funds will become available to you as you pay down the balance. This is a great way to establish credit with MCCU, re-establish your credit, or to use your own savings to finance your needs. Q: Will a Share Secured Loan help my credit? A: Yes it can, a Share Secured loan will be reported on your credit report as a trade line. This is a great way to begin establishing credit, or re-establish damaged credit. Q: Can I use my money to help someone else get credit? A: Yes, the collateral funds on a Share Secured loan may be pledged by any member who has funds at MCCU. Q: How long does it take to get a Signature Loan? A: Most Signature Loans can be approved and funded the same day. Often you may receive your loan proceeds while you wait. Q: Can I use a Signature Loan to consolidate credit cards and other higher rate loans? A: You may use a Signature Loan for any legal purpose. MCCU can even make the checks payable to your creditors and mail them for you. Q: Will it hurt my credit score if I get a Signature Loan? A: Getting a Signature Loan will not hurt your credit score. Your credit score is determined by the credit bureau based on many factors including timely payments, capacity and length of history. If you go in to any MCCU branch location a FSR will be happy to review your credit report with you and look for options to increase the score while saving you interest expense. Q: How much money can I borrow on a Signature Loan? A: MCCU makes Signature Loans up to $50,000. Your approved amount will be determined by your debt ratio, income, credit history and unsecured credit ratio. Q: Can I get a Co-Signer for a Signature Loan? A: MCCU will consider any loan request; however, Co-Makers are usually accepted on collateral loans only. Q: What type of Stock Loans does MCCU make? A: Stock loans are made using only Public Issue Stocks. Public issue means companies listed on the New York Stock Exchange (NYSE), American Stock Exchange (ASE), or the NASDAQ National Market Issues. Q: How much can I borrow? A: The maximum loan to value ratio is 75% of market value. Q: What happens if the value of the stock falls? A: All stock secured loans are subject to a margin call based on the market fluctuation of stock. If at anytime the value of the stock falls below the balance of the loan, you will be given 20 business days to either bring in additional stock certificates to secure the loan, or pay on the loan balance to reduce the loan to value ratio to 75%. Q: Can I use my mutual fund as collateral? A: No, you may not use a mutual fund as collateral; we can only accept stock certificates which will be held in trust at MCCU.
a) Financing Questions and Answers
b) Preferred Dealer Information
c) Recommended Products
2) Buying and Selling a Vehicle
3) Certificate Secured Loans
4) Credit Cards
5) Home Loans
a) Home Equity Line of Credit (HELOCS)
b) Home Equity Loans
c) Home Improvement Loans
d) Mortgage Loans
6) Recreational Vehicle Loans
7) Share Secured Loans
8) Signature Loans
9) Stock Loans
10) Student Loans
Door Ding Protection
Windshield repair is a process that combines modern technology and skill to fill a damaged area on a windshield with special clear adhesive resin. When this resin is cured, the damaged area´s strength is restored as is most of the clarity. A professional technician will repair your damaged windshield instead of replacing it.
24/7/365 Nationwide Emergency Roadside Assistance
Towing and emergency roadside service including mechanical first aid, tire, battery, and delivery services, extricating service, auto accident towing and lockout service.
A: You have a 25 day grace period for all purchases; there is no grace period for cash advances.
Q: What types of Recreational Vehicles (RV) does MCCU finance?
Frequently Asked Questions
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