First Federal Credit Union Mortgage Rates Review (2025)

First Federal Credit Union offers competitive mortgage rates on fixed- and adjustable-rate home loans, with rates as low as 6.75% for a 30-year fixed, 6.00% for a 15-year fixed, and 5.50% for a 5/1 ARM, based on a 20% down payment and excellent credit, as of May 2, 2025 (firstfedsavings.bank).

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1. Why Choose a Credit Union for Your Mortgage?

Credit unions like First Federal are member-owned, not profit-driven. That often means:

• Lower Rates & Fees compared to big banks
• Personalized Service—you talk to real people who care
• Local Decision-Making—underwriters know your community
• Member Perks—dividends on deposits, discounted services

This community vibe can make homebuying less stressful—plus, you get rates that can beat national averages. 🙌

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2. How Mortgage Rates Are Set

Before we dive into numbers, here’s how rates generally work:

• Economic Factors: Fed policy, inflation, and bond markets steer rates up or down.
• Credit Score: Higher FICO scores nab the lowest rates.
• Loan-to-Value (LTV): More down payment (lower LTV) = better rate.
• Loan Program: 15-year vs. 30-year vs. ARM changes the cost structure.
• Points: You can “buy down” your rate by paying extra upfront (1 point = 1% of loan).

Pro tip: Checking rates on a single day gives you a snapshot—but rates fluctuate daily.

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3. First Federal Credit Union Rate Highlights

(All rates as of May 2, 2025—subject to credit approval and change without notice.)

• 30-Year Fixed: Rate as low as 6.75%, APR 6.95%
• 15-Year Fixed: Rate as low as 6.00%, APR 6.25%
• 5/1 ARM: Rate as low as 5.50%, APR 6.00%
• First-Time Homebuyer (up to 100% LTV): Rate as low as 7.00%, APR 7.25%

Note: Rates assume 20% down payment, $300,000 loan amount, 740+ credit score, and a single-family primary residence. Your rate may differ.

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4. Detailed Rate Breakdown

30-Year Fixed Rate Mortgage

• Why it rocks: Stability—your principal & interest never change for 30 years.
• Monthly Payment Example: On a $300,000 loan at 6.75%, you pay ~$1,946/mo (principal & interest).
• Who it’s for: Homeowners planning to stay put or wanting predictable budgets.

15-Year Fixed Rate Mortgage

• Why it rocks: Shorter term = lower rate and huge interest savings.
• Monthly Payment Example: On a $300,000 loan at 6.00%, you pay ~$2,531/mo—but pay off your home in half the time!
• Who it’s for: Buyers with wiggle room in their budget, wanting faster equity build-up.

5/1 Adjustable-Rate Mortgage (ARM)

• Why it rocks: Ultra-low initial rate for 5 years—great if you plan to refinance or sell soon.
• Structure: Fixed rate for first 5 years, then adjusts annually based on an index + margin.
• Who it’s for: Young professionals or those expecting big income jumps soon.

First-Time Homebuyer Program (100% LTV)

• Why it rocks: No down payment needed—perfect if your savings are low.
• Trade-off: Rate is slightly higher (7.00%), and PMI (private mortgage insurance) applies until you hit 20% equity.
• Who it’s for: New buyers without 20% saved but with steady income and good credit.

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5. Small Comparison

🏠 Loan Type	📆 Term	🔑 Rate (as low as)	💸 APR
30-Year Fixed	30 years	6.75%	6.95%
15-Year Fixed	15 years	6.00%	6.25%
5/1 ARM	30 years	5.50%	6.00%
First-Time Homebuyer (100% LTV)	30 years	7.00%	7.25%

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6. Advantages & Disadvantages

✅ Pros	❌ Cons
Lower rates & fees vs. big banks	May require membership eligibility (e.g., location)
Member-focused service	Stricter underwriting in some cases
Flexible loan programs (first-time buyer)	100% LTV loans have PMI
Local underwriting & faster decisions	ARM rate resets can spike your payment

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7. Tips to Lock in the Best Rate

1. Boost Your Credit Score: Aim for 740+ for “as-low-as” rates.
2. Save for More Down Payment: Every 5% extra can cut your rate by ~0.125–0.25%.
3. Pay Points: 1 point = 1% of loan to shave ~0.25% off your rate.
4. Shop & Compare: Even within credit unions, rates can differ by program.
5. Lock Your Rate: Once approved, lock your rate for 30–60 days to avoid market jumps.

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8. Common Mortgage Terms Explained

• APR: Annual Percentage Rate—true cost including fees.
• PMI: Private Mortgage Insurance—required on <20% down loans.
• LTV: Loan-to-Value—the loan amount divided by home value.
• Points: Pre-paid fees to reduce your interest rate.
• Index & Margin (ARM): Index = market rate; Margin = lender markup.

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9. Final Thoughts

First Federal Credit Union stands out if you want friendly service, competitive rates, and community support. Their 30-year fixed at 6.75% and 15-year at 6.00% are right in line—or even a tad below—national averages for May 2025.

If you’re a first-time buyer, their 100% LTV option is gold, though PMI adds cost. And if you’re planning a short-term stay or expect your income to soar, the 5/1 ARM at 5.50% could be an excellent play.

Remember:

• Always compare your personalized offer.
• Read the fine print (APR vs. rate, fees, PMI).
• Lock your rate when you feel comfy with the numbers.

With this guide, you’ve got the lowdown on First Federal Credit Union mortgage rates—from nuts and bolts to pro tips. Now go get that dream home! 🏡🔥

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Disclaimer (Again, Just to Be Safe): This article is just for info purposes and isn’t an official offer from First Federal Credit Union. Rates and terms can change based on your situation, the market, or other factors. Always double-check with First Federal for the most current info. We’re not tied to them, and this isn’t financial advice—talk to a mortgage pro before signing anything. Stay safe out there! 🙏

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