Choosing the right loan FAQs
Use our online loan application in Digital Banking. There is no fee to apply. You can also speak with a member service representative.
The right loan for you depends on where you plan to purchase property. Each loan has its own eligibility requirements.
If you are a UN employee or retiree looking to purchase property outside the US, explore our international home loans.
For homes in Kenya and Uganda, we offer US dollar denominated Kenya mortgages and Uganda mortgages.
If you are planning to purchase a home in the United States, we offer a variety of US mortgages.
Unsecured loans are not backed by collateral. This means there is no asset for the lender to claim if the borrower is unable to pay back the loan. Our unsecured personal loan is an example of an unsecured loan.
A secured loan requires an asset as collateral. For example, a mortgage is a secured loan. The home being purchased is used as collateral to secure the mortgage. In the event the home buyer is unable to repay the mortgage, the lender can claim the property.
A fixed rate does not change over the life of the loan.
The variable annual percentage rate (APR) for UNFCU unsecured lines of credit is fixed for a six month period, after which it varies with the market based on the Prime Rate plus a margin. The variable APR for UNFCU Azure and Elite credit cards will vary with the market after their six and 12 month introductory periods based on the Prime Rate plus a margin. You can view the margins we add on our Rates page.
Though your rate may change each month, your monthly payment amount will stay the same for most UNFCU loans. If your rate decreases, you will repay your loan sooner. If it increases, you will make monthly payments for a longer period of time. Unless your loan is a US mortgage, it will not extend past 15 years, at which time any remaining principal and interest will be due.
Adjustable rate mortgages (ARMs) are similar to variable rate loans but typically have a longer initial fixed period and then adjust annually, not monthly.
Variable and adjustable rates may increase or decrease. ARMs have an initial fixed rate period. After that initial period, the interest rate resets at regular intervals depending on the mortgage. This means that the monthly payments for an ARM may increase or decrease.
A credit line is a loan that allows revolving payments. This means that each time you repay a borrowed amount, you replenish the total amount from which you can borrow. You only pay interest on the amount you borrow.
For example, assume you have a credit line of $5,000, and you borrow $2,000:
| Your total credit line | $5,000 |
| You borrow | $2,000 (you pay interest on only this amount) |
| You may still borrow up to | $3,000 |
If you pay back $1,500 of the $2,000 you borrowed, you may borrow up to $4,500 from your $5,000 credit line:
| Your total credit line | $5,000 |
| You borrowed | $2,000 |
| You paid back | $1,500 |
| Amount that you still owe | $500 (plus interest) |
| You may borrow up to | $4,500 |
These loans are a hybrid model. During the first two years of the loans, you can borrow up to your approved loan amount in any increment. You only pay interest on the amount you borrow. These characteristics are similar to a credit line. Unlike the other credit lines we offer, the amount you may borrow is not replenished with each payment.