Navigating Mortgages: A Guide for Indiana Homebuyers in 2025

Purchasing a home in Indiana is a significant step, and understanding your Mortgage options is crucial. At Encompass Credit Union, we provide various Mortgage Loan solutions tailored to meet the diverse needs of our members, whether you’re a first-time buyer or a seasoned homeowner. Let’s explore the different types of Mortgages we offer and find the best fit for your financial situation.

Mortgage Loan Options at Encompass Credit Union

1st Mortgages: Secure Your Foundation

Our 1st Mortgage options offer stability and flexibility for those looking to purchase a primary residence. We offer both Fixed-rate and Adjustable-rate Mortgage Loans.

  • Fixed-Rate Mortgages: Enjoy the peace of mind that comes with a consistent interest rate throughout the life of your loan, with terms ranging from 10 to 30 years. This option is ideal for those who prefer predictable monthly payments and long-term financial planning.

  • Adjustable-Rate Mortgages (ARMs): With our ARMs, the interest rate remains fixed for the first year and then adjusts annually. This option can be beneficial if you anticipate short-term homeownership or expect interest rates to decline.

2nd Mortgages: Access Your Home’s Equity

A 2nd Mortgage allows you to leverage the equity you’ve built in your home. At Encompass Credit Union, our 2nd Mortgage Loans come with no closing costs and terms of up to 20 years.

  • Fixed-Rate 2nd Mortgages: This option provides a stable interest rate for the duration of the loan and offers consistent payments.

  • Variable-Rate 2nd Mortgages: The interest rate on these Mortgages fluctuates monthly based on the Wall Street Journal Prime Rate. This option may be suitable for those who are comfortable with rate fluctuations and potential savings if prime rates decrease.

Home Equity Lines of Credit (HELOCs): Flexible Borrowing

Our HELOCs offer a flexible way to access funds when you need them. With no closing costs and no annual fees, a HELOC provides a revolving line of credit secured by your home’s equity. The interest rate is variable, adjusting monthly based on the Wall Street Journal Prime Rate. The draw period is 10 years, and the repayment period is 10 years. During the draw period, interest-only payments are required. This option is ideal for home renovations, debt consolidation, or other significant expenses.

Construction Loans: Build Your Ideal Home

If you’re planning to build a new home in Indiana, our construction loans can help you finance the project. We encourage you to contact our loan officers directly for detailed information on these specialized Mortgage Loans.

Which Mortgage is Right for You?

  • If you value stable, predictable payments, a fixed-rate 1st or 2nd Mortgage might be the best choice.

  • If you are comfortable with some interest rate fluctuation, an ARM or variable rate 2nd Mortgage or HELOC could be a great fit.

  • A HELOC is a strong option if you need flexible access to funds.

  • If you are building a new home, contact a loan officer to discuss construction Mortgage Loans.

At Encompass Credit Union, we are committed to providing Indiana residents with accessible and understandable Mortgage options. We strive to make the home-buying process as straightforward as possible.

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