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Loans FAQs


Straight Talk About Loans.

A loan is the ticket to achieving some of our biggest goals in life, that we couldn’t afford otherwise — from buying a home to starting a business or going to school.

The most important thing to remember is that taking out and repaying a loan is not intended to be a stressful experience. Here are some basic tips to help you understand how loans work. 

Frequently Asked Questions

Principle is the amount of money borrowed on a loan. It can sometimes refer to the amount of debt, exclusive of interest, remaining on a loan.

Interest is the amount charged by a lender to a borrower for the use of the money, often shown as an Annual Percentage Rate (APR). The ARP represents the yearly cost of the loan, including fees.

A term is the period in which you agree to pay back your loan.

Before you meet with a loan officer, you should have a clear idea of how much you can comfortably afford to borrow. That means determining how your loan (or, more accurately, your loan payments) fit in with your overall budget. If you don't have a budget, now is a great time to make one. Having your loan payment as part of your budget will give you a better sense of what you can afford.
You can research loans online to get an idea of interest rates for the products that interest you. Credit unions are known for offering competitive rates on loans. You may also qualify for discounts or a better interest rate because you have other banking products with your credit union. Sunrise Credit Union's Loan Calculator is a free, useful online tool to help determine the affordability of a loan.

Once you've done your research and have a budget, you can arrange to meet a loan officer. A loan officer has a comprehensive knowledge of lending products, rules and regulations, and the documentation required to obtain a loan. They act as the liaison between the financial institution and the borrower, and will try to find an arrangement that is in the best interest of both parties. You can set up a meeting with a friendly, helpful Sunrise Credit Union loan officer here. 

Research plays an important role in helping you find the right loan product. The process isn't easy, so taking your time and being thorough can save you years of financial stress. You should never feel pressured to sign anything on the spot. Remember, this is your loan and your future. You're in control!

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