The following provides answers to your most frequently asked questions about SEFCU mortgage products.
Q. What types of mortgages are available at SEFCU?
A. SEFCU offers both fixed-rate and adjustable-rate mortgages. We also offer a number of specialty mortgages, including loans requiring a minimal down payment, such as FHA and the Alt 97 loan programs. SEFCU also offers Florida mortgages for first and second homes in Florida.
Two rate types are available:
Fixed-rate Mortgages have a fixed interest rate, fixed monthly payment, and are fully amortized - meaning that these loans are completely paid off over a given number of years. A portion of each monthly payment covers interest, a portion of the principal, Private Mortgage Insurance (PMI-if required), as well as taxes and insurance.
Adjustable-rate Mortgages (ARMs) have a fluctuating interest rate and the potential for changing payment amounts. ARMs offer a low, initial rate which helps keep the monthly payments down during the early stages of the mortgage. These lower payments are often helpful during the first years of home ownership.
Q. What are SEFCU’s current rates?
A. Mortgage rates change on a daily basis. SEFCU’s current rates are posted twice daily to ensure that you can view the most up-to-date figures, 24-hours a day. Click here to view today's rates.
Q. When can I lock into an interest rate and for how long?
A. You will be given the opportunity to lock your rate as soon as we receive your completed application documents and we obtain a satisfactory preliminary underwriting decision.
Q. What if I cannot obtain a mortgage application appointment right away?
A. Demand for application appointments can be extremely heavy during periods of favorable mortgage rates for homebuyers. When rates are low, mortgage volume increases and delays can occur in lenders’ ability to schedule requested appointments. Because of the daily fluctuation of rates, it is not possible to lock in a rate until the time of the application appointment.
Q. What will my closing costs be?
A. The following costs will be associated with your mortgage:
- Application fee $150
- Credit Report fee $18.40 for joint borrowers and $13.20 for single borrower
- Appraisal fee $325 for a one-unit dwelling; additional cost for more than one unit
- Attorney fee $400
- Recording fee approximately $350 ($175 for refinance)
- Tax service fee $75
- Flood certification fee $7
- NYS mortgage tax - to estimate the approximate cost, multiply your loan amount by .0100 (this may be less if this is a SEFCU-to-SEFCU refinance)
- Title Insurance - to estimate the approximate cost, multiply your loan amount by .012 (this may be less if this is a refinance loan)
- Short-term interest from the day of your closing through the end of the month. This is calculated based on you loan amount and interest rate.
- Reserves for taxes and property insurance if you are escrowing taxes.
Q. What loan terms are available for SEFCU mortgages?
A. SEFCU offers terms of 10, 15, 20 and 30 years, depending on the loan program requested. Click here for details.
Q. Can I get a mortgage for a property in another state?
A. SEFCU only offers mortgages for property in New York State or the Pennsylvania counties of Susquehanna, Bradford, or Wyoming. If you are planning on purchasing or refinancing a home in Florida, SEFCU has partnered with CU Members Mortgage to offer a Florida Mortgage Program.
Q. What repayment options do I have?
A. You can repay your loan via payroll deduction, monthly transfer, or coupon book.
Q. What types of properties are eligible?
A. For the majority of SEFCU mortgages, eligible properties are one-to-four family, owner occupied dwellings.
Q. Are there any loan-to-value restrictions if I want to refinance for a higher amount than is needed to pay off my current mortgage?
A. Yes. This type of loan is referred to as a “cash-out” refinance and the amount of the mortgage you can obtain is limited to 85% of your property’s appraised value.
Revised 9/28/2009