Mortgage FAQs

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When it comes to mortgages, we'll do everything we can to make the process easy and understandable. If you've got questions, we're here to answer them.

What types of mortgages do you offer?

We offer 4 mortgage products, all of them Adjustable Rate Mortgages (ARMs): 1/1, 3/1, 5/1, and 7/1. The interest rates are fixed for the first year, the first 3 years, the first 5 years, or the first 7 years, respectively. After the fixed term, the interest rate is adjusted annually.

What are the advantages of an Adjustable Rate Mortgage?

There are several, including:

  • The lower starter rate makes it easier to start paying down the mortgage
  • If you reduce your principal by making additional payments, your future payments may be reduced and the amount of interest paid over time will be reduced
  • Your rate is adjusted not only up but also down. A fixed-rate mortgage, on the other hand, though it does afford you the benefit of always knowing your monthly payment, locks you into a high rate even if the average rates on mortgages drop. Then there’s 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?

By either adding our margin of 2.5% or 2.75% (depending on loan program) to the 1-year Constant Maturity Index (CMI) or by adding our annual cap of 1%, whichever is the lower of the two.

What types of properties will you finance?

Co-ops, condos, and one- to four-family homes.

What percentage of the financing can I obtain through ActorsFCU?

Up to 80% financing.

When do I lock in my rate?

When you notify us that you would like it locked.

Are there any fees that I pay upfront?

Yes, the application fee and the appraisal fee. If the appraisal fee comes in higher than the fee charged, 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?

Costs vary based on size of loan and type of property.
 


FEES CO-OP CONDO OR HOUSE

Application Fee       

$550 $550
Appraisal Fee Starting at $400

Starting at $400

Origination Fee From 0.75 – 2.50% of mortgage, based on size of mortgage.

From 0.75 – 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

$16.74 $16.74
Lien Search $320 (purchase), $262 (refinance)

N/A

 

Lien Filing/Mortgage Recording

$75

Based on mortgage size and location of property
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 $950

$950

Escrow Cushion 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 it off early?

No, none.

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, 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?

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 6 weeks for the application process to be completed. Once 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 2 weeks’ advance notice of a closing date; your attorney may have similar requirements.

 

Learn More by visiting our Mortgage page

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