Frequently Asked Questions

Adjustable Rate Mortgages

• I don’t like the idea of my monthly payments possibly increasing in the future. Is this my best option?
  That’s a valid concern. The ARM is designed for members with short-term goals or those who are confident that rates will decrease in the future, at which time they can refinance at the lower rate. I’m concerned that I might lose my home as my payments get too high. Your concern regarding the affordability of this loan is a valid one, that’s why we limit your potential rate increase to no more than 2% a year and offer a variety of fixed rate periods. This product also has a conversion option, which means for $500, member can convert to the current market rate at the time of the adjustment.
  
  
  

FHA Mortgage

• Will my payment amount change?
  No. Your principal and interest payment will remain the same; however, your payments may increase due to other charges, such as insurance or taxes that will naturally occur over time.
• Why do I have to pay MIP?
  FHA is a government-insured loan; paying MIP allows for the lesser down payment requirement. How long to I have to pay MIP? The monthly MIP remains on the mortgage for a minimum of five years.
• How long to I have to pay MIP?
  The monthly MIP remains on the mortgage for a minimum of five years.
  
  
  

Fixed Rate First Mortgage

• Will my payment amount change?
  No. Your principal and interest payment will remain the same; however, your payments may increase due to other charges, such as insurance or taxes that will naturally occur over time.
• What if mortgage rates drop?
  There are potential options available, including Refinance.
  
  
  

Fixed Rate Second Mortgage

• What restrictions do I have on how I use the money?
  Upon qualifying, you may use your money how you choose—it's completely up to you.
• Is it expensive?
  Our rates are quite competitive, and we offer no closing costs up to $100,000.
• Does it make it more complicated to sell my house later on?
  Not at all. You would pay, at the time of the sale, the balance owed on your fixed rate second mortgage.
  
  
  

Home Line of Credit

• Should I commit myself to making another mortgage payment?
  Your payment is based on your loan balance not the credit limit. You can also reduce the principal by any amount, at any time - without a pre-payment fee.
• Should What restrictions do I have on how I use the money?
  None. You may use your money how you choose—it's completely up to you.
• Is it expensive?
  Our rates are quite competitive, and there are no closing costs up to $100,000 .
• Does it make it more complicated to sell my house later on?
  Not at all. You would pay, at the time of the sale, the balance owed on your Home Equity Line of Credit.
• What if the prime rate increases?
  You then have the option to convert to a fixed second mortgage