Mortgages

Whether you’re buying a new home or refinancing, Direct Federal offers a range of mortgages with exceptional rates and flexible terms.
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Move In On The Perfect Mortgage

Beyond market-leading rates to save you money every month, our mortgage options come with an array of great benefits including a fast, easy application and access to expert, personalized guidance at any time.
  • Rate Security: Lock in your rate for 60 days while you house hunt.
  • Cash-Out Refinance: Access funds to meet your financial needs and goals.
  • Customize Your Loan: Choose from 5 to 30-year terms and loan amounts from $50,000 to $2,000,000.
  • Quick, Easy Application: Get a preliminary approval within 24 business hours.
  • Complete Transparency: No hidden costs, no "junk fees."
  • Decades of Experience: Finance the biggest purchase of your life with a proven, reliable lender.

Mortgage Offerings

Fixed Rate

Enjoy the stability and predictability of a consistent monthly payment over the entire term of your mortgage.

First Time Home Buyer

Get the guidance you need from our experienced Mortgage Specialists and begin your home ownership journey with confidence.

Jumbo Mortgages

Finance more expensive home purchases with exceptional rates on mortgages that exceed today’s conforming loan limits ($766,550).

Mortgage Rates

LOAN Type

To see the full table, scroll horizontally.
Rate
APR2
Cost4 / $1,000
5-10 YEAR FIXED
0.06250
0.06361
11.23
15-YEAR FIXED
0.06250
0.06329
8.57
30-YEAR FIXED
0.06875
0.06927
6.57
To see the full set of data, scroll horizontally.
Rate
APR²
Cost / $1,0004
15-YEAR FIXED
0.06375
0.06598
8.64
30-YEAR FIXED
0.07000
0.07140
6.65
View Disclosures
Single Family up to $766,550, 2 Unit up to $981,500, 3 Unit up to $1,186,350, 4 Unit up to $1,474,400. Call for our increased loan limits in designated High-Cost Areas.
Annual Percentage Rate (APR). The interest rate and APR are subject to change. Your actual rate will depend on various factors including, but not limited to, loan type, credit profile, property type, appraised value, occupancy, subordinate financing and loan size. Mortgage loans cannot exceed $2,000,000.00. Assumes 20% down and 0 points. Subject to credit approval.
Rates are based on current pricing and are subject to change at any time without notice. Rates are determined by certain factors, including loan amount, creditworthiness, loan-to-value (LTV), loan term, occupancy status, property type, loan purpose, property location, and lien position, so your rate could be higher. Advertised rates are based on the following loan assumptions – a purchase of a single-family, owner-occupied residence, with an LTV of 50% or less, a credit score of 800 or higher, based on a loan term displayed above, and the loan will be a first lien. Additional loan programs are available. Mortgage insurance may be required depending on loan guidelines. All loans are subject to approval, other conditions may apply.
Payments shown to not include taxes or insurance. Your payment may be greater.

Mortgage Calculators

Use our mortgage calculator to estimate your potential monthly payments based on different loan scenarios.

Use this mortgage calculator to help you estimate what your monthly home payment will be. We'll also break down the principal, interest, and insurance to help you estimate the breakdown of your total monthly payment.

How much could you save by refinancing your mortgage? Use this calculator to figure out how much you could reduce your monthly and total loan payments if you refinance your mortgage.

Interested in a mortgage?

Our Mortgage Loan Officers are here for guidance.

Glossary

Adjustable Rate Mortgage (ARM)
A mortgage having an interest rate that can change at designated intervals, based on a financial index.
Amortization
The gradual reduction of the principal of a mortgage by scheduled installment payments.
Annual Percentage Rate (APR)

The Annual Percentage Rate (APR) is the yearly interest rate that borrowers are charged on a sum of money. It is expressed as a percentage and represents the actual cost of funds over the term of a loan. This rate includes any fees or additional costs associated with the transaction but does not consider compounding. The APR is a helpful measure for consumers to compare among lenders as it provides a clear and standardized number.


Appraisal
A professional assessment of the market value of a property.
Assessed Value

The value placed on a property by local officials for taxation purposes only. (May or may not equal appraised value)

Cap
A limit set on an ARM as to how much the interest rate or monthly payments may increase.
Commitment Letter
A lender's formal notice to a borrower that a loan has been approved, states the terms and conditions of the loan.
Deed
The legal document conveying title to a property.
Equity

The difference between the market value of a property and the owner's outstanding mortgage balances.

Primary Residences: Direct will lend up to 80% of Combined Loan-to-Value.

Second Homes and Investment Properties: Direct will lend up to 70% of Combined Loan-to-Value.

Escrow
An account held by the lender into which a homeowner pays money for taxes and insurance.
Fixed Rate

Interest rates on fixed rate loans stay the same for the loan's entire repayment term. This means the cost of borrowing money stays constant throughout the life of the loan and won't change with fluctuations in the market.

Good Faith Estimate
A written estimate of closing costs provided by lender with three days after someone applies for a loan.
Homeowner's Insurance
An insurance policy that combines hazard insurance and liability coverage.
Loan origination Fee
Paid to the lender to cover the administrative costs of the loan.
Loan-to-value (LTV)

Your loan-to-value ratio (LTV) expresses how much you owe on your current first mortgage. Basic loan-to-value ratio formula:

Current first mortgage loan balance ÷ Current appraised value = LTV

Example: You currently have a loan balance of $100,000. Your home currently appraises for $250,000. So your loan-to-value equation would look like this:

$100,000 ÷ $250,000 = .40

Convert .40 to a percentage for a loan-to-value ratio of 40%.

Not-for-Profit

Direct Federal is a not-for-profit, meaning that earnings are invested right back into the credit union. And that means Direct Federal can offer lower loan rates and higher deposit rates that you simply won't see anywhere else.

PITI
Stands for principal, interest, taxes and insurance - the components of a monthly mortgage payment.
Points

A mortgage point, also known as a discount point, is a one-time fee paid upfront to decrease the interest rate on your home loan or refinancing. One point is priced at 1% of your entire home loan amount. To illustrate, with a $100,000 mortgage, acquiring one point would amount to $1,000.

Principal
The amount originally borrowed. Also, that amount of the monthly mortgage payment that reduces the outstanding balance of a mortgage.
Private Mortgage Insurance (PMI)
Insurance provided by a non-government insurer to protect a lender against loss if a borrower defaults. Usually required if down payments are less than 20 percent.
Title Insurance
Insurance to protect the lender or the buyer against loss arising from disputes over property ownership.
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Frequently Asked Questions

Use the search bar below to sort through our library of FAQs to learn more about a specific product, service, or process.
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Do you offer FHA loans?

We currently do not offer FHA loans.

Do you offer VA loans?

We currently do not offer VA loans.

Do you offer land loans?

We currently do not offer land loans but please check back in with us in the future!

How can I pay my bill?

We offer a variety of options to pay a Direct Federal Loan or Line of Credit.

View payment options for Direct Federal Loans and Lines >

How do I apply for a mortgage?

Completing your mortgage application online is just like completing one on paper — with the added benefit of being able to complete it anytime, anywhere. Plus, at any time, you may stop and save your application; then return to it later. Expect your application to take about 15 minutes to complete. A series of prompts and helpful tips will guide you through each screen to help you through each stage of the application process, which includes the following steps:

Start App – You’ll be asked to select a username and password to ensure security and privacy. Create and enter your username and password here and make a note of them for your records.

Loan Details – Enter the address, price and other information related to the property.

Personal Info – Provide the name, date of birth and social security number for EACH borrower.

Employment Income – Tell us about your current employment situation, including gross income and any additional income you may receive.

Expenses – What is your current monthly expense for housing?

Asset Info – Provide a list of your financial assets, including bank accounts and investments, in order to verify that you have access to sufficient funds to complete the transaction.

Submit App – After a few final questions, simply submit the application to Direct Federal and a mortgage specialist will follow up with you

How do I get pre-approved?

Submit an application online or call to speak with Mortgage Loan Officer.

What does my credit score need to be to qualify for a mortgage?

Different Mortgage programs will have varying qualifications. Please contact a mortgage specialist to discuss your options.

Send message to Mortgage Specialist >

What happens after my mortgage application is approved?

Once you’ve submitted your application, you will have a personal Mortgage Specialist follow up with you to provide additional help and guidance. Your Mortgage Specialist will be your single point of contact from here. He or she will send you an approval letter, order an appraisal from a licensed appraiser familiar with home values in your area, and prepare your loan for closing. The closing will take place at the office of our attorney in your area, who will act as our agent. Before closing, your Mortgage Specialist will contact you to walk through the final information and answer any questions you might have.

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