There’s no place like home with a 12.5-year loan

One Idaho cooperative stands out in a rural market dominated by credit unions with a new package of home loans that serve educators and first responders.

The math is simple: 10 plus 15 divided by 2 equals 12.5. And that’s how Idaho State University Federal Credit Union($262.2M, Pocatello, ID) came up with its Velocity Home Loan.

It’s a 12.5-year, fixed-rate note that fits neatly between the 10-year note that made for a payment just out of reach for many members and the 15-year loan that was longer than some members wanted.

“We live in a rural area, and many of our members prefer shorter-term loans,” says lending manager Ron Rippee. “Our mortgage staff was looking for an out-of-the-box product for them. We hoped this product would give them a payment they could comfortably handle.”

Velocity Home Loan is one of three home mortgage products created specifically for the credit union’s Idaho field of membership — which comprises ISU students and alumni, along with many southeastern Idaho school districts and businesses. Another loan is aimed at thanking first responders to the pandemic crisis.

 

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