August 25th, 2019

Loan FAQ

How do I make my loan payment?

You have several options available to make loan payments: through online or mobile banking, by automatic transfer from a Cornerstone account, or via mail. Review these options in detail hereOr, you can also utilize our Express Pay which allows members to use a non-CFCU Mastercard, Discover Card, debit card or checking account. Click here for a list of FAQs on this convenient product

How do I calculate the equity I can borrow on my home?

To calculate the equity in your home, we use the appraised value or purchase price, whichever is less. Depending on the type of mortgage, 80% to 85% of this value is available less your first mortgage balance.

Home Value = $100,000
80%= $80,000
Less 1st Mortgage Balance= $60,000
Available Equity= $20,000

What is a signature loan?

A signature loan is a loan for which no collateral is required. The only requirements are the signatures of the responsible parties on the loan agreement. The loan amount that applicants may qualify for is based on several different factors, such as employment history, income and credit history.

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What is a collateral loan?

Collateral is when security interest (a lien) is given on property that will be held to guarantee the repayment of the loan. When a lien is taken on property, insurance is required to protect the collateral. For example, a vehicle loan will require comprehensive and collision insurance with minimum deductible requirements.

The benefit of using or offering collateral on a loan is that interest rates are lower on collateral loans as compared to signature loans.

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What is a N.A.D.A. value?

N.A.D.A. is an appraisal guide for vehicles that offers market-reflective retail and trade-in values.  Cornerstone uses this appraisal to determine the value of collateral being offered as security on a loan.

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Why do vehicles with mileage over 90,000 receive different terms?

Vehicles with mileage over 90,000 are considered to have limited life use, which affects the value of the vehicle.  Therefore, the repayment terms may be shorter.

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What types of vehicles are considered to be Recreational Vehicles?

To receive the credit union’s recreational vehicle interest rate the vehicle must be an all-terrain vehicle (ATV), boat, camper, motorcycle, motor home, personal watercraft (Jet Ski) or travel trailer.

Financing may be available on other types of vehicles with different rates of interest.

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What is the difference between a joint applicant and a guarantor (co-signer)?

A joint applicant shares in the benefit of the loan and is responsible for repaying the loan.

A guarantor does not usually benefit from the proceeds of the loan and is only responsible for payment when the member does not meet their payment obligations.

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How does my credit score impact my ability to receive a loan?

The credit union evaluates all information received on an application as well as the credit history of the applicant(s) to determine credit worthiness.  The credit score is used to assign the interest rate and repayment terms received.

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