Mortgage
Mortgage Products
We offer you a variety of mortgage products to choose from:
- Fixed Rate Mortgage
- Second/Vacation Home Financing
- Adjustable Rate (ARMs)
- Low and No Down Payment Mortgage
- 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. 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
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.
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 $417,000.
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 97% 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.
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. You can do a Streamlined Refinance into any of our fixed rate products.
