Mortgage
Mortgage Products
We offer you a variety of mortgage products to choose from:
- Fixed Rate Mortgage
- No Points - No Closing Cost Mortgage
- Second/Vacation Home Financing
- Free Pre-Approvals
- 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 various terms—all with 2 points, 1 point, no points, or no points, and no closing cost options. DirectFederal offers fixed rate mortgages up to $1 million.
No Point - No Closing Cost Mortgage
Our No Point No Closing Cost Mortgages eliminate the usual out of pocket expenses associated with a mortgage closing. These include fees for the appraisal, credit report, tax service, flood certificate, employment verification, title and closing services and recording fees for the mortgage, municipal lien certificate, one discharge and deed (purchase). You will be required to pay our usual $445 ($645 Multi-Family) Application Fee and possibly a .50% rate lock deposit. However, both of these fees will be refunded to you at closing. Please keep in mind that you will still be responsible for funding a few non-closing cost items at closing. These include prepaid interest, initial deposit into your escrow account if we will be paying your property taxes, trust review, if any, and on rare occasions Freddie Mac fees associated with specific underwriting circumstances. All of these items will be disclosed in writing and verbally discussed with you when you are approved and again prior to closing. As is the case with all of our loan programs, there is no prepayment penalty. You can make extra payments whenever you wish, or payoff the entire loan early. Your loan request must be for at least $150,000.
Second/Vacation Home Financing
During vacation season, we all like the opportunity to get away. 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. Direct Federal offers fixed rate mortgages up to $523,750 for the purchase or refinance of a vacation home.
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 up to $1 million for any of our fixed or adjustable rate products.
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 reduced closing costs. And because you already have your mortgage with Direct Federal, the underwriting process is simple.
