Mortgage Services FAQ
- How do I know how much house I can afford?
Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value.
- What is the difference between a fixed-rate loan and an adjustable-rate loan?
With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.
- How is an index and margin used in an ARM?
An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).
- How do I know which type of mortgage is best for me?
There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Texas Trust Credit Union can help you evaluate your choices and help you make the most appropriate decision.
- What does my mortgage payment include?
For most homeowners, the monthly mortgage payments include three separate parts:
- Principal: Repayment on the amount borrowed
- Interest: Payment to the lender for the amount borrowed
- Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
- How much cash will I need to purchase a home?
The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
- Earnest Money: The deposit that is supplied when you make an offer on the house
- Down Payment: A percentage of the cost of the home that is due at settlement
- Closing Costs: Costs associated with processing paperwork to purchase or refinance a house
- What are your rates?
Find out here!
- Do you service all your loans?
While we do service the majority of our loans, we do not service all of them. The sale and transfer of loans is common practice within the mortgage industry. Loans may be sold or transferred based on the type of loan, loan terms, etc. The sale or transfer of a loan does not change the terms or conditions of the original loan agreement entered into with Texas Trust. Members will receive additional information regarding the possible sale or transfer of a loan at the time of closing.
- What number do I call if I have questions?
Call us between 8:00 am and 5:00 pm at (972) 595-1232.
- I have high credit card debt. Is a Home Equity Loan a smart choice for me?
Credit Card companies are increasing their rates while Home Equity rates are staying relatively low. This would save you money by consolidating all your credit card debt into a Home Equity Loan. For more information, call the Mortgage Department at 972.595.1232.
- What are closing costs, and how do I calculate them?
Closing costs are expenses incurred by the buyer/borrower and the seller in a real estate or mortgage transaction. These may include, but are not limited to: pionts, taxes, settlement fees, vendor fees, such as appraisal, title and escrow, and various kinds of applicable insurance including flood or hazard insurance. It's a good idea to get familiar with our website product.
- What are points?
Points (often called a "discount" or "discount points") may be charged in order to lower an interest rate. One point is equal to 1% of the loan amount. For example, 1 point on an $80,000 mortgage would be $800.
- What is Mortgage Insurance?
Generally Mortgage Insurance (or MI) is required if the loan amount is 80% or more of the value of the home. MI protects the lender against loss in the event of default. In most cases this insurance can be dropped once the loan amount has been brought down to less than 80% of the home value. MI is also required on all FHA secured loans.
- Where are you located?
Mortgage Services is located at 5850 West I-20, Arlington, Texas 76017. Call us at (972) 595-1232.