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.

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.

Do I qualify for a Conventional Mortgage?

Generally, if less than 43% of your monthly income is being filtered toward debt payment, you will likely qualify. However, there are exceptions based on individual financial circumstance. Schedule a meeting with one of our loan officers for more information.

What are the benefits of a Conventional Mortgage loan?

Some benefits include: low down payments, low closing costs, and easy credit qualifying.

Can I take out a mortgage even if I don’t have much money for a down payment?

There are low down payment options available for our fixed rate products and with our 5/1ARM 1st time home buyer product. Set up a consultation with one of our loan officers to learn about your options and to see if you qualify.

What is a mortgage pre-qualification?

A mortgage pre-qualification is when you supply a lender an overview of the credit, debt, income and assets you have in order for the lender to supply an amount that you are most likely to qualify for when purchasing a home.

What is the difference between a fixed-rate and adjustable-rate mortgage loan?

For fixed rates the interest rate is set when you take out the loan and will not change. With an adjustable rate mortgage, the interest rate may go up or down but will usually start at a lower rate than the fixed option.

Why choose a fixed rate mortgage?

A fixed rate mortgage is lower risk since the rate will not change. The monthly principal and interest payments stay the same for the duration of your mortgage.

Why choose an adjustable rate mortgage?

The adjustable rate mortgages start at a lower interest rate than the fixed. There is an initial fixed period of time before they may start adjusting. They are a good option if you plan to move again or refinance within the initial fixed period. We have options to fit everyone’s needs; the 5/5 No Boundaries Arm Product will not require Private Mortgage Insurance if the loan-to-value ratio is 90% or lower. If you are a first time home buyer, we offer a product that will require just 3% down and the loan origination fee is waived so that you have more to save!

What are my loan options if I am building a home new construction?

We have financing options for owner occupied and non-owner occupied properties. Contact our Loan Officers to discuss the best fit for your construction needs.

What are the first steps I should take when applying for a loan?

It is important to first to establish what you are able to afford based on your monthly and annual income. Establishing good credit is also essential. If you are ready to begin the process, call us at 413-536-0475 to set up a meeting with one of our loan consultants.

Can I estimate my monthly payment before my loan application is approved?

Yes – use our loan calculators for estimated monthly payments.

Are Alden Credit Unions loan calculators able to calculate exact payment amounts?

Exact payments can only be confirmed once we review both your application and credit report.

Do I have to pay for a credit report to see where my credit stands?

You are entitled by the Fair Credit Reporting Act (FCRA) to a free copy of your credit report once within every 12 month period.

How do I obtain a copy of my credit report?

Visit or call 1-877-322-8228 to order your free credit report.