Loans



Membership in Northrop Grumman Federal Credit Union means co-ownership in one of the strongest credit unions in the country.

Mortgage

NGFCU offers an array of options for members buying their first home or a new home, or refinancing an existing home. Our experienced real estate loan staff smoothes the process of getting a mortgage loan. Apply Online or for your no-cost pre-qualification, call 800-633-2848 (M-F, 7 a.m. - 6 p.m. Pacific). Please be prepared with your annual income and liabilities.

Competitive rates, very low closing costs and the assurance that the Credit Union will always service your loan make NGFCU the trusted source for your mortgage loan requirements.

Jumbo Real Estate Loans

You can also Apply Online for a very low rate jumbo real estate loan with a 15- or 30-year term Fixed, 30-year term ARM or Hybrid (3/1 and 5/1) on owner occupied (1-4 units), second homes (1 unit only) and investment properties up to 7 units. The maximum loan to value is 80% on a purchase or refinance with no cash out. The maximum loan to value for a cash out refinance is 65%. The minimum jumbo loan amount is the FNMA maximum ($417,000) and the maximum is $1,000,000. You'll also see that closing costs are among the lowest anywhere.

The minimum loan amount is $75,000 and the maximums are guided by FNMA standards:

  • 1 unit $417,000
  • 2 units $533,850
  • 3 units $645,300
  • 4 units $801,950

Conventional Mortgage

Our conventional mortgage/first trust deed loans have terms of 15, 20 or 30 years, with no prepayment penalty. When purchasing property, members may finance up to 90% of the value of the home, with a fixed or variable rate. On a refinance with cash out, members may finance up to 70% of the appraised value. Our Adjustable Rate Mortgage (ARM) has rate caps of 1% every six months, 2% per year and 6% for the life of the loan.

3/1 or 5/1 Hybrid ARM

The 3/1 or 5/1 Hybrid Adjustable Rate Mortgage (ARM) offers the peace of mind of an introductory (3 years or 5 years) fixed rate with the money saving low interest of an adjustable rate mortgage and a 30-year overall term. The added benefit of not paying non-recurring closing costs to get into this loan makes this a very good way to save money right away. The rate caps on the Hybrid ARM are 2% per year and 6% for the life of the loan. Call 1-800-633-2848 for current rates and more information about why the Hybrid ARM might be the best mortgage loan for you.

1/4% Rate Discount on Fixed Rate Mortgage Loans

Members with at least 20% equity in their property are eligible to take ¼ percent off the rate on their next fixed-rate mortgage loan by also using the following value-added Credit Union services:

  • MasterCard or Money Master Line of Credit
  • Home Equity Line of Credit
  • Share Draft (Checking) Account
  • Visa ATM/Check Card
  • Autopay of loan from an NGFCU™ deposit account

    • Per $100,000 financed, the ¼% discount means saving more than $6,000 on a 30-year loan; more than $3,500 on a 20-year loan; and more than $2,400 on a 15-year loan. To qualify for the discount, your loan can be up to 80% of the appraised value of your home. Learn more about this and other ways to save on your mortgage loan.

    80-10-10 Program

    To make it easier and more economical to buy a first home or move up to a bigger home and you don't have the cash on hand for a 20% down payment, you may qualify for a money-saving 80-10-10 loan program.

    Eligibility

    Qualifying properties include owner occupied, 1 to 4 units in all states and Washington, D.C. except Georgia, Texas and Louisiana. Property must be owner occupied. Second homes and vacation homes are also eligible with different rates and/or terms.

    Summary

    NGFCU™ mortgages offer a variety of benefits to members:

    15, 20 and 30 year fixed rate

    • Rate locks are available while applying for the loan. The rate, even if locked, can float DOWN if lower rates are available when your loan documents are drawn.
    • Free Float Down
    • No-cost bi-weekly payment option at origination.

    30-year adjustable rate mortgage loans

    • Interest rate increases and decreases are limited to 1% every six months and 2% per year (6% lifetime cap) over the original rate
    • Interest rate adjustments every six months
    • Rate tied to your choice of index:
      • LIBOR (London InterBank Offering Rate)
      • 1 Year Constant Maturity Treasury (CMT)
      • or COFI (11th District Cost of Funds)
    • No negative amortization
    • Low margin spreads offered to calculate interest rate at each adjustment

    3/1 or 5/1 Hybrid Adjustable Rate Mortgage

    • Initial 3-year or 5-year fixed rate that changes to an Adjustable Rate Mortgage allowing for increases or decreases to the interest rate on an annual basis.
    • Initial rate reduction for tier-one borrowers
    • Non-recurring closing costs paid by Credit Union
    • Non-convertible
    • Thirty-year overall term
    • Interest Rate Caps: 2% Annual/6% Lifetime
    • Minimum loan amount $75,000
    • Margin: 2.50
    • Index: Treasury: 1-Year Constant Maturity Treasury
    • Change Date: The first rate change date for the 3/1 ARM is the 36th payment due date and for the 5/1 ARM is the 60th payment due date. There is a new rate change date every twelve months thereafter.
    • No prepayment penalty
    • Competitive fees
    • Title insurance, recording, escrow, closing at actual cost
    • Favorable loan-to-value ratio†
    • purchase, up to 95% (80% outside California and on Jumbo loans) of the appraised value or the purchase price, whichever is less.
    • refinance for cash out, up to 70% of appraised value (Tier-one up to 85% with a price adjustment upon approval.)
    • Lower monthly loan payments

    † Private Mortgage Insurance (PMI) required on loans exceeding 80% loan-to-value ratio.

    Real Estate Agent Commission Discount

    Through special arrangements with member agencies of the Prudential California Realty Corporate Services Group, Northrop Grumman Federal Credit Union members can save hundreds or even thousands of dollars on home sales and purchases. Simply call Prudential California Realty before you contact an agent, and you'll be referred to a participating broker in your area. After your sale or purchase is complete, you can receive a 20% rebate on your agent's commission.

    To take advantage of this offer, you MUST call Prudential California Realty FIRST for a referral to a participating agent in your area at 1-800-462-7454.

    Eligibility

    All members who call Prudential California Realty Corporate Services Group before making a commitment to another agent to buy or sell a home.

    Summary

    • A member has the opportunity to save hundreds of dollars by calling Prudential California Realty Corporate Services Group and using a member agent to buy and/or sell their home.
    • Members can receive a 20% rebate on agent's fees on buying and/or selling their home.
    • Rebates on $75,000 minimum purchase or sale.
    Mailing Address
    Box Number 47009
    Gardena, CA 90247-6809
    Call Center
    800-633-2848
    Monday - Friday
    7 a.m. - 6 p.m. Pacific
    ©2009 Northrop Grumman Federal Credit Union. All Rights Reserved.