When it comes to mortgages, we will do everything we can to make the process easy and understandable. Here are some frequently asked questions.
How can I get prequalified?
Complete our free five-minute application to get prequalified. After receiving your submission, we will contact you to discuss the next steps.
What types of properties will you finance?
Co-ops, condos, and one-to-four family homes. The property must be your primary or secondary residence.
What types of mortgages do you offer?
We offer both fixed-rate mortgages and Adjustable Rate Mortgages, also known as ARMs. All of our ARMs have a fixed rate period be it 1, 3, 5, 7, or 10 years. After this period expires, our mortgage rates are adjusted annually. For example, with a 5/1 ARM, the interest rate is fixed for the first five years. In year six and beyond, the rate will be adjusted up or down once per year.
What are the advantages of a Fixed-Rate Mortgage?
The advantages are centered around the fixed-rate:
- Your interest rate will be locked for the life of the loan
- Your interest rate and payment will always remain the same
- Having a fixed-rate gives you greater clarity and certainity for financial planning
What are the advantages of an Adjustable Rate Mortgage?
There are several, including:
- Typically ARMs have a lower start rate vs traditional fixed-rate mortgages
- Typically ARMs have a lower monthly payment than traditional fixed-rate mortgages
- Over the life of the loan ARMs typically have a lower total finance charge vs traditional fixed-rate mortgages
- ARMs offer greater flexibility without any additional risk
- ARMs can be refinanced at any time into a new fixed-rate period
- ARMs are ideal for people looking to build equity quickly; we can show you how!
How long will it take to close a mortgage with ActorsFCU?
Once all of the required documents have been received, the mortgage process with ActorsFCU should only takes two to four weeks to complete.
Do you offer mortgages for second homes?
Yes, we offer the same loan terms and rates for second homes as we do for our primary residence.
How much financing can I obtain through ActorsFCU?
Our Fixed-Rate Mortgages and ARMs are both available as conforming loans and high balance loans. For 2020, a conforming loan is capped at $510,400 for most parts of the country; high-cost areas such as New York City and San Francisco may qualify for 150% off the normal limit (i.e., $765,600). If you need to borrow more than the conforming cap, we do offer high balance loans as well. Either way, our maximum financing is 90% of the property's appraised value.
Are there fees? And when do I pay them?
Yes, there are fees associated with our mortgages. The first of which is an appraisal fee due at the time of your conditional loan approval. Keep in mind, loan prequalification is free.
How much will my closing costs be?
Closing costs vary based on the loan specifics. Typically borrowers can expect closing costs to be between 2% - 5% of the loan amount. An estimate of your closing costs will be provided.
Are there any penalties if I make extra principal payments or pay off my loan early?
No, there are no prepayment penalties.