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?
For Purchases only, 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 certainty 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
How long will it take to close a mortgage with ActorsFCU?
Typical processing time from submission is Closing is 60 to 90 days.
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?
AFCU imposes an aggregate borrowing cap of $2,500,000.00 for 1st mortgages and $800,000.00 for 2nd mortgages. It is possible to borrow up to overall $3,300,000.00 per borrower.
Are there fees? And when do I pay them?
Yes, there are fees associated with our mortgages. Standard estimates are between 2%-5% of the loan amount. This may vary per situation.
How much will my closing costs be?
For standard 1st mortgages, AFCU $750.00 Application Fee, 1% (of Loan) Origination Fee and $100.00 as a Processing Fee. 3rd Party Fees such as Credit Reports, Flood Certification, Title Fees, Legal Fees and Government Fees, etc. are borrower responsibility and due at the Closing table.
Are there any penalties if I make extra principal payments or pay off my loan early?
No, there are no prepayment penalties.
