GCS Credit Union
618.797.7993
GCS is a full-service financial institution serving the following counties in Illinois: Sangamon, Logan, Macon, Marion, Jefferson, Perry, Jackson, Williamson, Jersey, Macoupin, Montgomery, Madison, Bond, Clinton, St. Clair, Monroe, Washington and Randolph.

Get the Facts About Down Payments and Mortgages

When you purchase a home, there are two numbers that will loom large: your down payment and your home mortgage loan amount. These two figures are closely linked, but there is no single way of handling these payments that is right for everyone. Because credit unions are member-owned nonprofits, you can count on the loan officers at your union to help you make the right financial decisions for you. If you’re considering purchasing a home, here are the facts you need to know.

Down payments are designed to encourage you to pay your mortgage.

You may wonder why lenders want you to make a down payment at all, when you could simply finance the entire purchase amount and pay more interest on the loan. The idea behind down payments is that people will feel more pressured to pay their mortgage payments if they have a lump sum of money invested in the property. Falling behind on payments means you could lose not only the home but also the initial investment. Lenders believe that putting down money in advance means you’ll prioritize your mortgage loan payment.

Not all down payments have to be 20%.

Although 20% of the purchase price of the home is a typical down payment, it is possible to put down less money than that. Keep in mind that you will need to pay mortgage insurance if you put less than 20% down until you have 20% invested in the home through equity. How much you should put down depends on a number of different factors, including how much you can afford and how much mortgage insurance impacts your monthly payment.

Your down payment affects your mortgage payment.

Your mortgage payment is based on the amount of money you borrow and the term of your loan. The larger your down payment, the less money you will need to borrow, which in turn means the lower your loan payment will be. You will also ultimately pay less interest when you borrow less.

Let GCS Credit Union help you make the right decisions when you need a home mortgage loan in O’Fallon. We offer competitive rates and a full range of financial products. Call us at (618) 797-7993 to learn more.

Hours

  • Monday 8:30am — 5:00pm
  • Tuesday 8:30am — 5:00pm
  • Wednesday 10:00am — 5:00pm
  • Thursday 8:30am — 5:00pm
  • Friday 8:30am — 6:00pm
  • Saturday 8:30am — 12:00pm