The Aurora Bank offices are located nationwide, from Delaware, California, Colorado, Indiana, Missouri, through Nebraska, New Jersey, to New York. The company doesn’t provide online payday loans. Being a mid-sized financial institution nowadays, Aurora Bank was founded in 1921, so it has a long tradition of rendering financial services. The long history of the bank allowed it to gain a valuable experience, which was later used in providing such financial services as retail banking, mortgages and business and commercial banking. Servicing over 300,000 customers, it is a federal savings bank (FSB) regulated by the OTS and the FDIC.
Services offered by the bank:
- lending services in the form of certificates of deposit
- checking and savings accounts,
- debit cards,
- mortgages
- refinance
- money market accounts
- deposit by mail,
direct deposit,
electronic transfers,
online banking
The bank’s interest rates on CDs have been competitive. Aurora Bank Commercial Services provides loan servicing directly to owners of commercial real estate property.
Non-conventional mortgage loans are basically government loans: VA (Veterans Administration), FHA (Federal Housing Administration) and FmHA (Farm Housing Agency)—now RHS Rural Housing Service—loans. This article will discuss two specific non-conventional programs in more detail below:
1. VA
2. FHA
Ginnie Mae, the Government National Mortgage Association, is the agency responsible for securitizing much these non-conventional, government loans. All other types of primary mortgage loans provided by private lenders and not guaranteed by the government are considered conventional loans.
Contrary to what many people may believe, the VA and FHA normally do not fund loans.
These two governmental agencies only guarantee certain portions of a mortgage loan. But these are powerful and effective guarantees. These guarantees are reassuring to lenders in that they lower the lender’s overall risk exposure.
The biweekly plan is actually just another way of saving money by reducing the loan’s term. In addition to the
biweekly plan, consider these three additional options:
● Extra principal payments
● Refinance to a shorter term
● Graduated payment plan
Extra principal payment plan
As mentioned above, the extra principal payment program pays a little extra toward the principal balance of the loan, over and above the regular monthly requirements. By paying a little extra each month or once in a while, the borrower can dramatically lower the term of the loan.
For example, a 30-year $100,000 loan with an interest rate of 7.75% has a monthly payment of $716.41. If the borrowers were to make a monthly payment of $816.41 (an extra $100 toward principal), the loan would be paid off in about 24 years, for a total savings of about $50,000.
Refinance to a shorter term
If you can afford the commitment to a slightly higher monthly payment, refinance your 30-year mortgage into a 10-year, 15-year or 20-year mortgage loan.
The monthly payments will be higher because of the shorter amortization; however the interest rate is lower and the overall interest charges are dramatically less.
Graduated payment plan
Sometimes referred to as the graduated equity mortgage or growing equity mortgage, the graduated payment plan also shortens the loan’s term and reduces total interest cost. Although many variations exist, the basic pattern is to increase the payment amount at the beginning of each year. The extra payment earn interest income and is then applied toward repayment of the loan principal.
The biweekly program is not for all homeowners. In fact, there are disadvantages to this program. A question many financial analysts will point out is that why should you pay off future debt with current dollars.
Remember that every dollar you pay today will be worth about 50 cents (or less) in twenty years. With a typical 30-year loan, biweekly payments will trade each solid dollar today for 50 cents in the future. You are often better off using prepayment funds to pay off non-deductible, higher-rate debts—such as credit cards and personal loans.
The peace of mind of paying off your mortgage early and having fewer burdens in your later years is a big positive. But on a purely financial basis, the biweekly payment may not always be the best program for you. You have to calculate the potential savings–and non-monetary benefits–against the probable costs.