Mortgage FAQs

What types of mortgages do you offer?

We offer Adjustable Rate Mortgages (ARMs).

What does that mean?

We offer three mortgage products: 1/1, 3/1, and 5/1. What that means is that the interest rates are fixed for the first year, the first three years, or the first five years, respectively. After the fixed term, the interest rate is adjusted annually.

What are the advantages of an Adjustable Rate Mortgage?

There are several advantages to an Adjustable Rate Mortgage. The most obvious is the lower starter rate; this lower rate will make it easier to start paying down the mortgage. Another significant benefit of an Adjustable Rate Mortgage is that if you reduce your principal by making additional payments, your future payments maybe reduced and the amount of interest paid over time will be reduced. Additionally, with an Adjustable Rate Mortgage, your rate is adjusted not only up but also down. A fixed-rate mortgage, on the other hand, can be a double-edged sword: While it does afford you the benefit of always knowing your monthly payment, you are locked into a high rate–even if the average rates on mortgages drop. You must go through the time-consuming and costly process of refinancing to get it down–assuming both owner and property are eligible for refinancing.

How is my rate adjusted after the fixed term?

The rate is adjusted by either adding our margin of 2.5% to the one-year Constant Maturity Index (CMI) or by adding our annual cap of 2%, whichever is the lower of the two.

What types of properties will you finance?

We will provide financing for co-ops, condos, and one- to four-family homes.

What percentage of the financing can I obtain through ActorsFCU?

We offer 80% financing if you qualify.

When do I lock in my rate?

Your rate will be locked in when you notify us that you would like it locked.

Is there an application fee that I pay upfront?

Yes, $900: $550 covers the application fee and $350 covers the appraisal fee. If the appraisal fee comes in higher, the difference will be added to your closing costs; if the fee comes in lower, you will be refunded after closing.

What sort of closing costs should I expect?

The costs will vary based on size of loan and type of property.

Fees CO-OP Condo or House
Application Fee $550.00 $550.00
Appraisal Fee Starting at $350 Starting at $350
Origination Fee From 0.75 – 2.25% of mortgage, based on size of mortgage. From 1.00 – 2.50% of mortgage, based on size of mortgage.
Short-Term Interest Based on number of days between funding and first of next month Based on number of days between funding and first of next month
Flood Search $16.02 $16.02
Lien Search $320(purchase), $245 N/A
Lien Filing $75 N/A
Title Insurance N/A Based on mortgage size and location of property
Mortgage Tax N/A Percentage of mortgage based on mortgage size and location of property
Attorney Fee $875 $875
Escrow for Property Taxes N/A Two Months
Escrow Service
Fee
N/A $73

*Rates and fees are subject to change. Please verify current fees and rates.

Are there any penalties if I pay if off early?

No, there are no prepayment  penalty fees.

Can I prepay my interest?

No, your interest accrues on a daily basis and is calculated based on the number of days between payments and the outstanding principal balance.

Can I prepay on my principal balance?

Yes, you can pay as much as you want at any time.

When are my payments due?

The first of every month.

Is there a grace period if I’m late?

Yes, you have 15 days to make payment without getting a late fee.

What will my late fee be?

The late fee is 2% of your monthly payment.

Should I be pre-qualified?

Yes. The majority of real estate brokers will not show you a property unless you are pre-qualified. Getting pre-qualified will help determine the size of mortgage you can be approved for and the price range of the properties you should be looking at.

How much time does the mortgage application process take?

Although it varies with each individual borrower, it usually takes less than six weeks for the application process to be completed. Once the application has been approved, a commitment letter will be issued to the applicant. The applicant then has up to 60 days to close on the mortgage. Please note that our attorney requires two weeks’ advance notice of a closing date. Be advised that your attorney may have similar requirements.

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