- Frequently Asked Questions
- Home Loans
Home Loans
What is Primary Mortgage Insurance?
Primary Mortgage Insurance (PMI) is insurance that lenders require from homebuyers who obtain loans that are more than 80% of their home's value. In other words, buyers with less than a 20% down payment are required to pay PMI.
Can I change insurance companies for my homeowner's policy? Does the Credit Union need to know?
We accept coverage from most insurance companies. If you choose to replace your current coverage, please send your replacement policy along with your written authorization to our office so that it arrives at least 30 days prior to the expiration of your current policy. Your new insurance needs to show Oregonians Credit Union as the mortgagee. Please keep in mind that if you change policies before your current policy expires, you may not receive a full refund from your current insurance company.
What is a Mortgage Loan?
A mortgage loan is a real estate loan that serves as collateral to provide for repayment in case of default. The interest is amortized over the term of the loan.
What is the difference between a Home Equity Loan and a Second Mortgage?
They are two different names for a loan that is taken out against your home to get cash. A Home Equity Loan is a type of Second Mortgage.
Do you sell your 1st mortgage loans?
The credit union has the option to retain or sell a loan to the secondary market and the option to sell the servicing. At this time, we do sell loans to the secondary market but we retain the servicing. This means that if your loan is sold to the secondary market, you will continue to make payments to Oregonians Credit Union.
Is there a minimum mortgage loan amount?
Generally, the minimum loan amount for a 1st mortgage loan is $100,000. Please contact a Member Service Officer at 503.239.5336 or 800.982.2974 or memberservices@ofcu.com for further details.
What is a Blanket Mortgage?
A blanket mortgage is a mortgage covering at least two or more pieces of real estate, all of which together serve as collateral for the loan.
What is a Mortgage Note?
A Mortgage Note is a legal document obligating a borrower to repay a loan at a stated interest rate during a specified period of time. The agreement is secured by a mortgage which is recorded with the proper authorities.
What is the Truth-In-Lending Act?
Truth in Lending Act is a Federal law that requires written disclosure of the terms of a mortgage by a lender to a prospective borrower within three business days of application. It discloses an APR which is the cost to the borrower of the loan and the best way to compare loan to loan.
What is MIP?
MIP is Mortgage Insurance Premium. It is insurance purchased by borrower to insure the lender against default.
Can I make a principal only payment toward my mortgage?
We limit our members to one principal reduction payment per year. If you would like to make a large one-time principal reduction payment, arrangements can be made for you to do so. However, you can include additional principal in your regular monthly payment as often as you like.
What are Discount Points?
Discount Points are set by the Secondary Market. Discount points are charged based on loan to value, credit score and loan type. Each point is equal to 1% of the loan amount. When a lender sells the loan to the Secondary Market, these discount points are then paid by the lender to the Secondary Market entity. Secondary Markets are Fannie Mae, Freddie Mac, Ginnie Mae and can be private companies and individuals. Examples of Discount Points (these can change as the mortgage market changes): 0.25% of the loan amount for Adverse Market Conditions. 1.25% of the loan amount for Cash Out Refinance with LTV of 60.01-70% and Credit Score of 680-699. Discounts accumulate. The above example would have total discounts of 1.50%. There are different levels of discounts depending on the type of loan (first time home buyers, investment, condominium, manufactured home), the borrower's credit score and the loan to value (how much of the equity of the home is being borrowed).
What is a Mortgage?
A mortgage is a document creating a lien on a property as security for the payment of a debt. In some states, a Deed of Trust is used instead.
Visit our mortgage page for more information.
What is the difference between a Home Equity Loan and a Home Equity Line of Credit?
Funds from a Home Equity Loan are disbursed in full at the time of closing. This loan has a set repayment term and monthly payment amount.
A Home Equity Line of Credit (HELOC) provides you with a revolving credit line where you can obtain credit advances for the draw period up to the credit limit set at the time the loan was opened. The payment amount is calculated on the highest amount owed and does not decline as the balance declines; payment is reset upon obtaining a zero balance.
How many parts are there to get a mortgage approval?
There are two parts and each part has many steps: Approval of the borrower and Approval of the property. See Mortgage Process for more details.
What is Freddie Mac?
Freddie Mac (FHLMC) Federal Home Loan Mortgage Corporation. Freddi Mac is a quasi-governmental agency that purchases conventional mortgages from insured depository institutions and HUD-approved mortgage bankers. One of the Secondary Market loan purchasers. Oregonians does not offer Freddie Mac Products.
Do you offer no closing cost loans and no point loans?
No, we do not offer no closing cost/no point loans as we keep our fees to a minimum to cover the costs of processing your loan request.
Can I make a partial payment toward my mortgage loan?
Our mortgage software will only accept full payments.
If you would like to keep the funds for your mortgage payment separate from your checking account or put aside a portion of your payment several times each month, we suggest that you put these funds in your savings account or open a second savings account specifically for your mortgage payment. You can then make your payment from your savings or second savings account when it is due.
If you would like to set up a second savings account please visit one of our branches or call our member service center at 503.239.5336 for assistance.
What are Points?
A point is a one-time charge by the lender for originating a loan. Points are paid by the borrower at the opening of a loan; each point equals one percent of the loan amount.
What is a Bi-weekly Mortgage?
A mortgage which requires principal and interest payments at two-week intervals which is exactly half of what a monthly payment would be which over a year's time, the 26 payments are equivalent to 13 monthly payments on a comparable mortgage loan and as a result, the loan is amortized much faster than loans with the standard monthly payments. There is often a fee per payment for this service. We do not offer Bi-Weekly Mortgages.
What is Hazard Insurance?
Hazard Insurance is coverage that compensates for physical damage to a property from fire, wind, vandalism, or other hazards. Also known as Home Owner's Insurance or fire insurance.
How can I apply for a mortgage loan?
Applying online is easy!
What would it cost me to refinance my first mortgage?
The cost to re-finance your home depends on the loan amount and the type of loan product you want, your credit score and the loan to the value (LTV) of your home. The member pays the origination and closing costs, appraisal, flood and document prepartion fees. Watch for occasional specials listed in the monthly newsletter or postcards sent by mail.
Can I roll my closing cost fees into my loan?
You may roll closing costs into your loan on a refinance or equity loan providing you have the equity in the value of the property. Closing costs can not be included in a mortgage loan for a purchase.
Are there closing costs associated with a second mortgage loan?
Closing costs on second mortgages vary from state to state and normally run between $250 to $500.
Do I need to send the credit union a copy of my tax bill?
We will send you a written request for your tax bill if we need it. Please send us the bill only upon our request.
Do you offer mortgages, equity loans and HELOCs for out-of-state properties?
We offer mortgages, home equity loans, and HELOCs on properties located within the state of Oregon and Washington. The property must be within 300 miles of any Oregonians branch. You must already be a member or qualify for membership in order to get a home loan with us.
What are Courier or Mail Fees?
These are fees charged by the closing agent for shipment of loan documents and related paperwork.
What is a Home Equity Line of Credit?
A home equity loan is a type of loan in which the borrower uses the equity in their home as collateral.
A HELOC differs from a conventional home equity loan in that the borrower is not advanced the entire sum up front, but uses a line of credit to borrow sums that total no more than the credit limit. HELOC funds can be borrowed during the "draw period". Repayment is the amount borrowed plus interest. A HELOC will have a minimum monthly payment requirement which increases as the balance increases.
Another important difference from a conventional loan is that the interest rate on a HELOC is variable. The interest rate is generally based on an index, such as the prime rate. This means that the interest rate can change over time.
On a Home Equity Line of Credit, how do I increase the amount on my loan?
To increase a HELOC loan amount you may contact a loan officer, email us or apply in person at one of our branches. You will need to complete a new application. You will be responsible for the recording costs of the Modification of Trust Deed. The request will need to be processed as a loan request so the value of your home will need to be verified and a credit report will be ordered.
What are Documentary Stamps?
A state tax, in the forms of stamps, required on deeds and mortgages when real estate title passes from one owner to another. The revenue stamps issued for payment of a tax on recorded documents such as deeds.
What is an Escrow Officer?
An Escrow Officer is a neutral third party who is appointed to act as a custodian for documents and funds during the transfer of property from seller to buyer. Depending on local law and custom, this could be an attorney, escrow agent or title company.
Why should I consider getting pre-approved before buying a home?
A pre-approval helps the buyer be seen as more stable and has a greater influence in negotiating a purchase price, and can act quickly when they find a home they really love.
What are your mortgage rates?
Do you offer Jumbo loans?
We do not offer Jumbo loans at this time, but may occasionally offer this product.
Can I get a copy of my appraisal?
Yes, you will always receive a copy of your appraisal for a funded loan that you have paid the appraisal fee for or on a incompleted loan for which you have paid the appraisal fee.
Can I make my mortgage payments online?
Yes, mortgage payments can be made online through e-teller.
To sign up for e-teller you may apply online or contact us at memberservices@ofcu.com.
What is a VA loan and how do I know if I am eligible to apply?
Currently Oregonians Credit Union is not offering VA loans. We do however offer Oregon Department of Veterans' Affairs mortgages for the purchase of a primary residence in Oregon.
Learn more:
What is Title Insurance?
Title Insurance protects the lender (lender's policy) or the buyer (owner's policy) against loss due to disputes over ownership of a property.
What is a Graduated Payment Mortgage (GPM)?
Mortgage in which initial low payments (with potential negative amortization) increase regularly for several years and then level off. We do not offer this product.
What is a late fee for delinquent mortgage payment?
The late fee for loans delinquent 15 days (16th of each month) is 5% of the monthly Principle and Interest payment.
Are there any deals for first time home buyers?
FHA loans are ideal for the first-time home buyers and those low-to moderate-income borrowers. Loans are insured by the Federal Housing Administration. Down payments may be as little as 3% and the loans are assumable with release of liability to the original borrower. These loan limits are determined by the department of Housing and Urban Development (HUD). These loans can also be fixed or adjustable rate. This is a great question but we are not yet approved for FHA and hope to be soon.
What is Prepaid Interest?
Prepaid Interest is charged to a borrower at closing to cover interest on the loan between closing and the end of the month in which the loan closes.
What is a First Mortgage?
For more information, please visit the mortgage page on our website.
What is an Escrow Account?
An escrow account is an account held by lender for the purpose of holding funds used to pay expenses such as property taxes and homeowner's insurance. Interest is paid on the account.
What is an Adjustment Interval?
An adjustment interval is the length of time between rate adjustments on an Adjustable Rate Mortgage (ARM).
What are Reserves?
Reserves are the portion of a borrower's monthly payments held by the lender to pay for taxes, insurance, and other items as they become due.
What is an ODVA loan?
ODVA is the acronym for Oregon Department of Veterans' Affairs. The Oregon Department of Veterans' Affairs offers mortgages to qualified veterans for the purchase of their primary residence in Oregon.
- Please check the Oregon Department of Veterans' Affairs' website: www.orvethomeloans.com for the eligibility requirements.
- Check Oregonians Credit Union's website for details: https://www.oregonianscu.com/loans/veterans.htm
Do you offer ARMs or Adjustable Rate Mortgages?
We do offer a variety of adjustable rate loans.
Do we give HUD loans?
HUD loans are basically FHA loans. We do not offer this type of loan at this time.
What is a Mortgage Broker?
A mortgage broker is a person or entity that arranges financing for borrowers but places loans with lenders rather than funding them with the broker's own money. Brokers shop for rates and loan types for the borrowers. There are fees for their services.
How often can the interest rate change on a Home Equity LOC?
Our Home Equity Line of Credit interest rate is determined by Prime Rate as published in the Wall Street Journal. Our rate will change on the 1st day of the month following when the change is published (i.e. Prime changes and is published on 7/15/08, the new rate will begin 8/1/08). The rate could change monthly, but Prime Rate typically does not change that often.
If I get a 1st Mortgage with the credit union, where will I do my closing?
The closing agent varies by state law. In some Eastern states attorneys are closing agents for real estate transactions. In Oregon, Washington and California, title companies are used to close real estate transactions. The borrower may choose which title company they prefer. For a purchase on a new home, closing will take place at a title company chosen by the seller.
What are Convertible ARMs?
ARMs with the option of conversion to a fixed loan during a given time period (see "Conversion Clause"). Oregonians offers conventional ARMs, but no Convertible ARMs at this time.
What is a Mortgage Banker?
A mortgage banker is a company that originates mortgages exclusively for resale in the secondary mortgage market.
What is a Balloon Mortgage?
A Balloon Mortgage is a short-term, fixed-rate loan with low payments for a set number of years and a large balloon payment for the remainder of the principal due at the end of the term. For example: A 3 Year balloon amortized over 30 years is a loan with payments for principal and interest based on a 30 year loan. These payments are made for three years at which time the loan matures and the remaining principal balance is due.
What is a Two-Step Mortgage?
Mortgage with a low fixed interest rate for 5, 7, or 10 years, which is then adjusted to a new rate for the rest of the loan. We do not offer this product.
How long would it take to get a 1st mortgage loan?
It can take up to 60 days from submission to closing date. Loans may take longer depending volume within the mortgage market.
Can I pay my own real estate taxes and homeowners insurance?
Yes, you may elect to pay your own taxes and insurance. Impounds or Escrow may be required as a condition of loan approval due to loan to value, down payment amount or other factors.
What is the Primary Mortgage Market?
The Primary Mortgage Market includes banks, savings and loans, credit unions, and mortgage banks that make mortgage loans directly to borrowers. These lenders sometimes sell their mortgages to lenders such as FNMA in the secondary mortgage market.
How is my final mortgage rate calculated, and when is that rate confirmed?
Interest rates fluctuate daily. Rates available when you apply may be different than the rates available when you decide to lock your interest rate. By locking, you protect your selected rate for a stated period of time regardless of market fluctuation. Your credit rating, debt-to-income ratio and combined loan-to-value ratio will determine your final mortgage rate. Your rate can not be locked until these are determined.
What is a Closing/Settlement Statement?
A Closing/Settlement Statement is a form prepared by the closing agent that itemizes the closing costs associated with purchasing or refinancing a home.
What is a Fixed-Rate Mortgage?
A fixed rate Mortgage is a mortgage that has an interest rate that does not change for the life of the loan. Payments are also fixed as is the term of the loan.
What are Seller's Points?
Sellers Points are a lump sum paid by the seller to the buyer's creditor to reduce the cost of the loan to the buyer. This payment is either required by the creditor or volunteered by the seller, usually in a loan to buy real estate. Generally, one point equals one percent of the loan amount.
What is a reverse mortgage?
A reverse mortgage converts home equity into money, but requires no repayment until the borrower(s) permanently leaves the home. Often it is set up as a line of credit from which the borrower may take advances as funds are needed. Oregonians does not offer this product.
What is a Lease-Purchase Mortgage Loan?
An alternative financing option that allows low- and moderate-income homebuyers to lease a home from an organization with an option to buy. Monthly rental payments cover mortgage payments and include an additional amount that is saved toward a down payment. We do not currently have a Lease-Purchase Product.
What is Processing?
Processing is the time between application and loan closing. During this time your loan processor reviews your income and asset documentation, obtains a title insurance policy, clears any clouds on title, orders and reviews your property appraisal, obtains evidence of homeowners insurance, verifies the flood zone status of your property, and coordinates the signing and closing of the loan. The Loan Processor also pulls credit, and puts all documentation in order to submit the loan to the Underwriter. This process typically takes 30 to 60 days.
What is Prepaid Mortgage Insurance?
Mortgage insurance is insurance purchased by a buyer to cover the lender's risk of loss. Mortgage Insurance is generally required by lenders when the down payment is less than 20% of the purchase price. When mortgage insurance is prepaid, it is paid at closing. When paid monthly with the payments, one month is collected for reserves at closing. You have the option of paying the full amount of the premium at closing and this would be considered prepaid.
Will the payoff figures be verified on the day of closing?
Yes, the amount due will change if payments were posted to or removed from the account after the payoff statement was ordered. If payoff funds are received after the expiration date of the payoff statement, the interest amount due will be different. You or your agent should contact us at 800.982-2974 or 503.239.5336 on the day of closing to verify the payoff figures.
Do I need to provide you with proof of my Homeowners Insurance?
Yes, you must provide proof of one year full coverage at the time of closing. One year's premium is usually collected at closing and paid to your insurer. Oregonians Federal Credit Union must be listed as the mortgagee on the Hazard Insurance Policy.
What are closing costs?
Closing costs are fees incurred in a real estate or mortgage transaction paid by borrower and/or seller at the closing of the transaction. These fees can be lender fees, closing agent fees and other third party fees.
What is a Closing (or Settlement)?
The closing is the meeting between the buyer, seller and lender or their agents at which property and funds legally change hands after all the proper documents are signed and recorded.
Do you offer a third mortgage loan?
No, we offer first lien and second lien position loans only.
How are my taxes paid?
If you have an escrow/impound account, the Credit Union obtains your real estate tax amounts and pays the taxes as they become due. Tax payments will be noted on your billing statement. In certain areas, however, tax collectors will not release this information to lenders. If we need your assistance in obtaining your tax bill, we will forward a letter to you requesting a copy. If you receive your tax bill and do not receive a letter from us, please keep the bill for your records. If you do not have an escrow/impound account you will need to pay your property taxes.
Do you have mortgage calculators on your website?
We have a number of helpful mortgage calculators on our website.
How do I see what my mortgage interest rate will be?
You don't have to apply for a mortgage with us to know what your rate will be!
Note: We use a third party system called Mortgagebot to help us with the mortgage origination process. All of our daily mortgage rates are hosted on a microsite hosted by Mortgagebot.
To find out what your interest rate will be:
- Open our Mortgage Web Center
- Click Do a Rate Search to open the Check Rates form.
- Provide the information and click Get Rates.
- When the Available Products page loads, open the dropdown for the desired mortgage product (i.e. "30 Year Fixed Rate").
Here, you'll see interest rates based on points paid, and the corresponding fees and payment amount (payment doesn't include taxes).
If a mortgage product doesn't appear on this page (i.e. "30 Year Fixed Rate"), it's because we can't offer this product based on the information provided in the Check Rates form.
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