A.  A point equals 1% of the loan amount.  Points are generally paid to help reduce your interest rate.  Points are, in effect, prepaid interest.  If you intend on keeping the property for more than 3-5 years, it makes sense for you to pay points.  Lower rate equals lower payment.  The longer you hold the property, the longer you would have a lower payment.

A.  No, points are optional.

A.  Lenders normally require Private Mortgage Insurance when your equity position is less than 80% of its value.  PMI will automatically be removed after your home has been paid down to 78% of either the appraised value or the purchase price, whichever is lower.

A.  Adjustable Rate Mortgages usually offer a lower initial start rate and change after 3-7 years.  ARMs are based on different indices than fixed rate mortgages (FRMs).  Therefore, always compare the benefits of the ARM to the FRM to see if it makes sense.

A.  While your loan is in processing, you may worry that rates may change and your payment goes up.  Lenders give you the option to lock your rate for a specified period of time, thus securing your rate from price changes.

A.  If you pay your loan off in the early years, some lenders will charge you a fee to do so.  These fees can range up to 5% of the initial loan amount and can be in effect for as long as 5 years.  Your lender is required to disclose the prepayment penalty during the application process and at the closing.  To be safe, always ask if there is a prepayment penalty.

A.  Yes.  Most mortgage programs have no penalties for early repayment of principle.

A.  We have zero down mortgage options.  You may qualify for one.

A.  We have a wide array of programs for all types of credit.

A.  Mortgage rates are based on U.S. Bond yields and are not changed by the Federal Reserve.  Bond Prices generally change in the opposite direction of the Stock Market.  Therefore, if the Stock Market goes up, Bond Prices go down and their yields need to go up to make Bonds more attractive.  Thereby causing rates to rise and not drop.

A.  This is a tough question.  All lenders have the right to sell your servicing.  When you get the lender's disclosures look for the "Mortgage Servicing Disclosure."  This form will tell you what percentage of loans is serviced.

A.  No.  Your mortgage contract can't be changed.  Only escrow calculations may change and there are laws governing how escrows may be handled.

A.  Yes.  You would not be able to qualify for a loan over the price; however, the Credit Union has many options for members to acquire home improvement money.

A.  Yes.  We offer a wide variety of loans that verify income at different extents.  You may qualify for a 'No Income Verification Mortgage'.  So long as you are comfortable with the payments, we can provide you with options.

A.  Many people put their home's equity to work for them.  You can borrow in most instances up to 90% of your home's value.  We can perform an analysis to determine whether it makes sense for you to take cash out.