Randolph Brooks Federal Credit Union Mortgage Review

Joseph Meyer
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RBFCU Background

The Randolph Brooks Federal Credit Union, also known as RBFCU, is a credit union that provides consumer, small business and commercial loans. It has been in the industry since 1968 when the company was established. According to its website, it provides car loans, boat loans, RV loans, mortgage loans, condo loans, personal loans, and student loans for students in North and South Carolina. The company is based in Leland, North Carolina.

RBFCU is part of the Credit Union Association (CUA) and has received national awards over the years. This credit union offers its members a wide range of financial products, a high rate of interest on deposits, and no annual service fees.

RBFCU Mortgage Rate

Over the course of a 20 plus year career, there was one thing that I wish I had known from the beginning.

It wasn’t until I was a seasoned veteran in real estate lending that I learned that an extended time on a loan is the quickest way to cost savings. This was an eye-opening lesson as it comes in direct conflict with the advice given by most trainers in the mortgage industry. I’m not sure that the benefits of an extended term can be found anywhere outside of a Randolph Brooks Federal Credit Union review.

The reasons why we were told to make a 10 year (or less) loan, were pretty straightforward. It makes it easier on a lender when you make loans with shorter terms. If you’ll recall, when I started, the last thing I wanted to do was buy a mortgage. So I needed to do everything in my power to make the job as easy as possible.

Fast forward almost 25 years, I can tell you that my employer, Randolph Brooks Federal Credit Union makes significantly more money on a 15 year fixed rate than a 10 year fixed rate. I can also tell you the cash creation that comes from a 5/1 ARM beats that of any 30 year fixed rate.

Randolph Brooks Federal Credit Union Mortgage Specifics

Even though I’ve lived in California for most of my adult life, I certainly didn’t grow up here. I came from a tiny town in central Texas. It was a typical Texas town, though a little more rural than most. One thing that was unusual about it was the abundance of wild peacocks. I took it for granted until I moved to California. However, now that I’ve been here many years and have had a chance to explore the state, I’ve discovered that the same is true in most other parts of the state! When I return home to visit, I rarely see a peacock.

Not only that, but I’ve learned that most Texans don’t understand the origins of the term. They assume that it refers to the famed Spanish explorer, who gave his name to the state of Texas, to be the founder of the breed. And frankly, with so many houses covered in that distinctive blue paint, I’m sure the appearance was in the back of many minds. But not so.

Fixed-Rate Loans

With a fixed-rate home loan, your monthly payment never changes. In addition to potentially lowering your interest rate, a fixed-rate mortgage can also provide you with the peace of mind that comes with knowing exactly how much you’ll be paying each month.

With a fixed-rate mortgage, the interest rate that you’ll be charged will stay the same for the life of the loan. A great benefit is you get the benefit of the lowest rate for the life of the loan, which may be the 15+ years it typically takes to pay off a home.

Even if interest rates fall, your rate won’t change. As a result of that stability, you don’t have the potential for a rate increase if interest rates go up. However, the drawback of a fixed-rate home loan is if you want to take advantage of rising interest rates and refinance, you probably won’t be able to.

Adjustable-Rate Loans

FHA Mortgage Loans

The Federal Housing Administration was created to help people obtain financing for their homes. On January 30, 1934, the Federal Housing Administration, or FHA, was created to insure home mortgages.

Potential borrowers did not have to have a great credit rating in order to qualify for one.

Quite a few prominent government officials were aware of the looming housing crisis. They wanted to provide some type of mortgage insurance for borrowers. While the FHA was created for targeted individuals who could not qualify as buyers, the agency quickly found a niche within the mortgage business. The FHA began insuring loans in 1943. President Roosevelt signed it into law on June 27, 1934.

Since then, the FHA has grown tremendously and it is currently the largest insurer of mortgage loans in the US, with more than half of all mortgages originated in the United States being insured by the FHA.

In order to obtain a FHA loan, you must go through an approved lender. The lender will determine if your application has any concerns, which will be reviewed by the FHA. The lender will need to provide your financial information to the FHA so they can fully examine it. They will review the original loan documents and make sure that the appraisal is within pricing standards for the area that you plan to buy in.

The lender will also send a notice of approval or denial to you within a short period of time.

VA Loans

The Good and the Bad

The Department of Veteran’s Affairs (VA) offers a variety of home loan products to eligible members of the US military. As a VA mortgage borrower, you will have favorable terms such as a no-down-payment option, flexible underwriting criteria, and 0% financing.

Another attractive feature of VA home loans is the VA funding fee that is typically half the amount that you would pay on a non-VA loan. In fact, this is the only expense you would probably incur when you apply for a VA loan, since these loans do not require any closing costs.

But just because the VA home loan products are designed to make home buying more affordable for eligible military members doesn’t mean that they can never cause financial strain on you. Below are the pros and cons of VA mortgage products that you might want to carefully consider before applying for one.

Pros:

No down payment

VA loans allow you to purchase a home with no down payment. The money that would otherwise be used for a down payment can be put to better use in the form of mortgage closing costs and the down payment on the other homeowners insurance.

No Mortgage Insurance

Unlike conventional loans, VA products require no private mortgage insurance. That’s because the VA offers a blanket mortgage insurance that is automatically paid by the Department of Veteran’s Affairs.

Construction Loans

What is it? Construction loans are offered by financial institutions to fund an individual’s construction of real property. These loans may be secured by a second mortgage on the property or its value may be converted into an equity mortgage. Most construction loans are graduated, meaning that they are released in stages, as work on the property progresses.

Who uses it? Construction loans are commonly utilized when a property owner wishes to construct a house as quickly as possible but lacks the financial reserves to construct the residence. Since this form of financing does not provide the borrower with access to funds until property completion, individuals who have sufficient, long-term access to funding sources and have a sufficient fund to cover the costs of the development often do not use construction loans.

Construction loans can be used by property investors who wish to develop properties for long-term rental or sale.

Common Uses of Construction Loans

  • Reconstruction of a property
  • Purchase or construction of a building, including premises and fixtures
  • Purchase property without existing structures
  • Reconstruction of a property
  • Purchase or construction of a building, including premises and fixtures
  • Purchase property without existing structures

Land Loans

Although land loans are sometimes referred to as building construction loans, you don’t have to be building a home on the land to get one. Lenders consider any land that you want to develop into something, such as a home, as qualifying property.

Why not just buy the land outright? A land loan—also called a lot loan—offers permanent financing available for a large purchase that’s outside of your budget, and it also enables you to build equity more quickly.

RBFCU Mortgage Experience

Lender Reputation

People who apply for a mortgage from Randolph Brooks Federal Credit have been highly impressed with the professionalism of the loan officer they speak with. Randolph Brooks are not just a mortgage lender, they’re also considered one of the best lenders out there for good reason. The mortgage consultants at Randolph Brooks act quickly and are always available to provide assistance. They have qualified and licensed loan officers who have years of experience with various types of mortgages. Randolph Brooks is known to be very understanding of borrower’s financial situations. Loan officers have the approval to use their own judgment when it comes to a certain case and can help regardless of the situation. This is especially true for delinquent, underwater, and short sales.

Everybody deserves a second chance. Whether you’re a homeowner or someone who is looking for their first mortgage loan, you’re more than welcome to apply with Randolph Brooks. They are willing to work with you in delivering the best loan options available and to educate you on any topic regarding mortgages.

Mortgage Qualifications

Getting a mortgage is a major step in buying a home. It is the single most important purchase most people make in their lifetime. Choosing the right mortgage is one of the biggest financial decisions you will make, and can be quite confusing with all the different mortgage products and options out there. The following information is designed to help you understand the process and assist you in determining the mortgage program that best suits your individual financial goals.

In a typical situation, the process of getting a mortgage is as follows:

  • You have identified a property and set a price range you are willing to pay.
  • You have a pre-approval letter from your lender for the amount you need. This lets the sellers know that you are financially qualified to make the purchase.
  • The seller receives your pre-qualification or pre-approval letter.
  • If the seller wants to proceed with negotiations, the seller will require a mortgage commitment from you and will provide you with pay stubs, tax forms, and details on all assets and liabilities, including credit card debt & car loans.
  • If given the necessary documentation, your lender will send you a mortgage commitment for you to sign.
  • Your lender will issue a commitment letter to the seller. This letter states that if the seller accepts your offer, they will find financing for you and the commitment will become your mortgage.