Mortgage
Mortgage Products
We offer you a variety of mortgage products to choose from:
- Fixed Rate Mortgage
- New 40-Year Mortgage
- Second/Vacation Home Financing
- Jumbo Mortgage
- Adjustable Rate (ARMs)
- Low and No Down Payment Mortgage
- Free Pre-Approvals
- Stated Income Mortgages
- Streamlined Refinance Mortgages
Fixed Rate Mortgages
Our Fixed Rate Mortgages allow you to lock-in an interest rate that makes sense for you. Market rate fluctuation won't have an impact on the amount of interest you pay for the life of the loan. A Fixed Rate Mortgage is beneficial if you don’t like to take chances and prefer payment stability. This mortgage option provides a monthly payment that does not change. Fixed Rate Mortgages are available for 40, 30, 20, or 15 years—all with 2 points, 1 point, no points, or no points, and no closing costs. Traditional or "Conforming" Fixed Rate Mortgages have specific dollar limits.
Currently, these limits are:
- $417,000 for a single family home
- $533,850 for a two-family home
- $645,300 for a three-family home
- $801,950 for a four-family home
Fixed rate mortgages above these amounts are called "Jumbo" Mortgages. To obtain more detailed information about products that meet your specific need, click here for a Personalized Quote.
New 40-Year Mortgage
Today's real estate market has made it difficult for some to make the leap from renting to buying.
We can fix that. Direct Federal’s new 40-Year Fixed Rate Mortgage could provide you a monthly payment low enough to make your dreams a reality. But the 40-Year Mortgage isn’t just for new homebuyers. In the current marketplace, the extended term can also help you purchase a home of greater value while keeping your mortgage payments manageable. See example comparison chart below.
| Example: 30-Year and 40-Year Mortgages Compared | |||
|---|---|---|---|
| 40-Year Fixed | 30-Year Fixed | Your Savings: | |
| Loan Amount | $250,000 | $250,000 | |
| Rate with 2-points | 5.850% | 5.650% | |
| Monthly Principal and Interest | $1,350.46 | $1,443.99 | $93.53 |
| Rate with 0-points | 6.500% | 6.200% | |
| Monthly Principal and Interest | $1,464.77 | $1,532.20 | $67.43 |
Our 40-Year Mortgage is the latest in a variety of adjustable and fixed rate loans. We've got a home loan that'll fit your budget and lifestyle. And as a direct lender, we handle all aspects of the loan process under our own roof, including the underwriting, processing and servicing of your mortgage loan. Apply Online and get a loan approval online in minutes! Or, contact one of our experienced mortgage Loan Officers.
Second/Vacation Home Financing
During vacation season, we all like the opportunity to get away. Whether you' enjoy time at a beachfront house, country cottage or mountain chalet, chances are you have a vision of calling your favorite vacation spot "home" one day.
And right now is a great time to invest in your second home. The combination of an expected increase in demand, today's favorable interest rates and creative vacation home mortgage options actually make it a wise investment.
Jumbo Fixed Rate Mortgages
Need a larger Fixed Rate Mortgage? Consider Jumbo Fixed Rate Mortgages, which are available for the same terms and with the same point options as traditional Fixed Rate Mortgages. The differences are that they are available for up to $1,000,000 and carry slightly higher interest rates.
Adjustable Rate Mortgages
We offer a wide array of Adjustable Rate Mortgages (ARMs) to fit our borrowers' needs. ARMs enable you to buy the most house for your money with a lower initial monthly payment than comparable Fixed Rate loans. If you need financing only for a few years then this choice may be right for you. They have a low, fixed interest rate for a specific period of time–one, three, five or seven years. Once that period of time is up the rate then changes annually. Borrowers opting for this type of mortgage usually plan to sell, refinance or otherwise pay off their loan before the rate begins adjusting.
After the initial fixed interest rate period, the rate will change annually but is subject to annual and lifetime caps. That means the rate cannot change more than a certain amount each year or more than a certain amount over the entire life of the loan. All ARMs have a 30-year term and are available up to $1,000,000.
Unlike most lenders, Direct Federal does not charge a higher interest rate for Jumbo ARMs. You will receive the same low rate, regardless of the amount you borrow.
Low and No Down Payment Mortgage
Taking the leap from renting to owning requires a lender who can make things easier for you. If you have limited funds for a down payment, our Low or No Down Payment Mortgages could be what you need. We offer several ways to obtain financing. With as little as a $500 personal contribution you can borrow up to 103% of your home’s value. Private Mortgage Insurance or PMI would be required under these circumstances. If you want to pay less for your PMI you can put more money down to decrease your PMI premium or to avoid PMI you would need to put down 20%. If you don’t have 20% to put down and you do not want to pay for PMI, you can apply for a fixed rate mortgage for the first 80% of the home and borrow up to the remaining 20% in the form of a Direct Federal Home Equity Line.
Free Pre-Approvals
If you are beginning the home buying process, getting pre-approved for your financing is one of the smartest things you can do. Being pre-approved shows realtors and sellers that you are a serious, qualified buyer.
It is important to understand the difference between pre-approval and pre-qualification. Pre-qualification is really nothing more than a simple calculation that estimates how large a loan you might qualify for. Once you find your home, you have to begin the actual mortgage application process from the beginning.
Pre-approval consists of a full mortgage underwriting. Once you find your home, the only step left is to have it appraised. We can pre-approve you in as little as 15 minutes. We will also provide you with a pre-approval letter to share with realtors and sellers. You can be pre-approved for any of our fixed or adjustable rate products.
Stated Income Mortgages
If you have complicated income records or wish to maintain a high level of confidentiality regarding your finances, you might want to consider our Fixed Rate Stated Income Mortgages. They allow you to obtain financing without providing documentation about your income. If you are self employed, you may also be required to provide a business license as well as the source and amount of your income.
Streamlined Refinance Mortgages
Do you already have a mortgage with Direct Federal? Would you like to refinance it? Take advantage of our Streamlined Refinance Program. If mortgage rates are currently lower than the rate on your mortgage—or you want to reduce the term of your mortgage—you can refinance with guaranteed closing costs of no more than $995.
And because you already have your mortgage with Direct Federal, the underwriting process is simple. You can do a Streamlined Refinance into any of our fixed rate products.
