Second Home Loan

With historically low mortgage rates and a number of bargain-priced homes on the market, now is a perfect time to invest in a second home. Redstone Federal Credit Union® offers loans for members who would like to invest in a second home that is or will become your principal residence in the future, and for those members who would like to own a vacation home.

We'll find the right mortgage loan to suit your needs. We have several mortgage options to help you buy and finance a second home, even with as little as 10% down!

Second Home Mortgage Loan Options

15-Year Loan
Are you are looking for that vacation home on the water or maybe a weekend getaway place in the country? We can help you finance your vacation home. A maximum 15-year term is available to finance your vacation home.

30-Year Loan
Fixed and Adjustable rate loans are available when financing a second home that will become your principal residence in the future. It's a great option to finance your retirement dream home!

Qualifying characteristics for a second home include

  • Must be occupied by the borrower for some portion of the year.
  • Is restricted to one-unit dwellings.
  • Must be suitable for year-round occupancy.
  • Borrower must have exclusive control over the property – no management companies and no time-share arrangements.

Easily apply online, over the phone, or in person by scheduling an appointment at 256-882-8500.

 

Mortgages are only available for properties located in Alabama and Tennessee.

A typical purchase transaction example for 30 Year/15 Year mortgages:
The information provided assumes the purpose of the loan is to purchase a property, with a loan amount of $90,000 and a purchase price of $120,000 (assumes a 25% down payment). The property is located in AL and is within Madison County. The property is an existing single family home and will be used as a primary residence. The rate lock period is 45 days and the assumed credit score is 750. For a 30-Year Fixed Rate Mortgage at 3.625% interest rate with zero discount points, the APR is 3.774%. The monthly payment schedule would be 359 payments at $410.45 and 1 final payment of $407.87. For a 15-Year Fixed Rate Mortgage at 2.875% with zero discount points the APR is 3.138%. The monthly payment schedule would be 179 payments at $616.13 and 1 final payment of $615.54. If the down payment is less than 20 percent, private mortgage insurance (PMI) will be required, which could increase the APR and/or monthly payment. An escrow (impound) account is required and thus the actual monthly payment will also include amounts for real estate taxes and homeowner's insurance premiums.

A typical purchase transaction example for a 5 Year ARM (30 year): The information provided assumes the purpose of the loan is to purchase a property, with a loan amount of $90,000 and a purchase price of $120,000 (assumes a 25% down payment). The property is located in AL and is within Madison County. The property is an existing single family home and will be used as a primary residence. The rate lock period is 45 days and the assumed credit score is 750. At a 2.625% initial interest rate with zero discount points, the APR for this loan type is 2.892%, subject to increase. Based on current market conditions, the monthly payment schedule would be: 60 payments of $361.49 at an interest rate of 2.625%; 299 payments of $366.55 at an interest rate of 2.75%; 1 payment of $365.56 at an interest rate of 2.75%. The ARM has a monthly payment that may change over the term of the loan. An escrow (impound) account is required and thus the actual monthly payment will also include amounts for real estate taxes and homeowner's insurance premiums. If the down payment is less than 20 percent, private mortgage insurance (PMI) will be required, which could increase the APR and/or monthly payment.

APR=Annual Percentage Rate

Must be an RFCU member to obtain a loan. Must be eligible for membership and open a share savings account.  A minimum balance of $5.00 is required to open and be maintained in share savings account at all times.  Fees and other restrictions may apply.   All loans subject to credit approval.  Rates, terms, and conditions are subject to change without notice.  Other restrictions may apply.  RFCU is an Equal Credit Opportunity Lender.  Rates are determined by an evaluation of applicant credit at account opening.  Your rate may be different. Fixed rates remain fixed for the life of the loan and adjustable rates are subject to change after consummation. Various Mortgage programs and terms are available. Must create separate user name and password to gain access to mortgage application process.

 

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View the Mortgage Center, contact us online, or call us at:

256-882-8500 (Huntsville area)
800-234-1234 x8500 (toll free)
Monday - Friday: 9 a.m. – 5 p.m.

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