Mortgage FAQ’s

What is an adjustment period?

With most adjustable rate mortgages the interest and monthly rate are fixed for a period of time, such as one year, three years and five years. After that your rate can vary each year until your loan payment is completed, which is the adjustment period.

What are closing fees and how are they determined?

Home loans often involve many fees such as the appraisal fee, title charges, closing fees, and state or local taxes. These fees can vary by state and by lender.

Are there any fees if there is an overdraft in my account?

No, we have an overdraft protection so you will not be charged any fees if over drafted.

How much money will I save in a 15 year mortgage rate versus a 30 year mortgage rate?

You will own your home in half the amount of time it would take in a 30 year mortgage.

You will save more than half the amount of interest paid on the mortgage, typically the interest rate would be 0.500% lower than a 30 year mortgage.

The only thing is that typically your payments will be at least 10% higher per month than a 30 year mortgage. So it is what is best for the customer.

How are interest rates determined?

Interest rates can fluctuate due to a variety of factors such as inflation, economic growth and Federal Reserve policy. Inflation has the largest influence over interest rates. The Federal Reserve implements policies designed to keep inflation and interest rates relatively low and stable.

What is an adjustable mortgage rate?

It is a type of loan that offers lower initial interest rates than most fixed loans. The trade-off is that the interest rate can change in relation to an index and the monthly payment will go up and down accordingly.