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.
Our variable rate is fixed for the first six months of your loan. After this introductory period, we will calculate your interest rate each month. The introductory period for adjustable rate and variable rate mortgages may be different.
To calculate your rate, we add a margin to the prime rate published in The Wall Street Journal. This is the guiding rate typically used by lenders. It can fluctuate. The margin we add for each loan is listed on the Loans tab of 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.
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.