FAQ's
What information do I need to bring to my mortgage application?
Fixed vs. ARM, which should I choose?
How do I pre-qualify for a mortgage?
Can I lock my interest rate at time of application?
How long does it take for my mortgage to be approved?
In order to obtain my mortgage, do you require any tests on the property?
Can I use my own attorney?
What are "closing costs"?
What other costs will be included in my monthly bill beside the principal and interest?
How can I obtain a copy of my credit report?
What is the difference between fixed and adjustable rate mortgages?
What is a point?
What does APR mean?
What is Private Mortgage Insurance (PMI)?
What is a "Good Faith Estimate"?
What are "CAPS"?
Can I obtain PMI by myself?
If my loan is sold, will the terms of my mortgage change?
What does "Escrow" mean?
Where do I make my payment?
Will I receive a monthly statement, or will I use a coupon booklet?
Can I make additional payments on my mortgage?
What information do I need to bring to my mortgage application? You should bring as much financial information as possible. Typically, your loan officer will ask for: W2s from the past 2 years, pay stubs to cover the most recent 30 days; the past 2 most recent statements regarding assets (savings, checking, 401K, etc.) current credit obligations and any credit explanations, if necessary. If self-employed, you will also need the last 2 years income tax. Depending on your individual circumstances, additional information may also be required. Top of Page
Fixed vs. ARM, which should I choose? Typically the starting rate for an adjustable rate mortgage is lower than for a fixed rate mortgage.  This results in the starting payments on an ARM being less than for a fixed rate mortgage on the same amount.  It also means that you might qualify for a larger loan since this decision takes into account your current income and the first year's payments. Your Adjustable Rate Mortgage might also be less expensive over a long period as compared to a fixed rate if interest rates remain steady or move lower. Against these advantages, you have to weigh the risk that an increase in interest rates would lead to higher monthly payments.  In order to assess the risk you need to consider the following questions. Is it likely that my income will increase enough to cover a higher mortgage payment if interest rates go up? Will I have additional debts in the near future such as for a new car? How long do I plan on owning this home? Can my payments increase even if interest rates generally do not increase? Top of Page
How do I pre-qualify for a mortgage? Pre-qualifying for a mortgage is easy and convenient.  You should contact your EFS Loan Officer and arrange an appointment.  Your Loan Officer will review your income, asset and credit information and  then be able to tell you how much of a mortgage you can afford. Top of Page
Can I lock my interest rate at time of application? YES. Enfield Federal Savings can lock your rate for 60 days.  Longer rate locks are available and can be discussed at time of application. Top of Page
How long does it take for my mortgage to be approved? This time frame can vary.  If all your financial information is provided at the time of application, the bank will provide a credit decision within approximately one week. Top of Page
In order to obtain my mortgage, do you require any tests on the property? Enfield Federal Savings typically does not require any inspections for residential mortgages.  However, if there is an apparent concern regarding the property, test(s) may be required. Top of Page
Can I use my own attorney? Enfield Federal Savings has a list of attorneys which are approved to represent our Bank.  You may select one of these attorneys to represent you, or you may choose to have your own attorney represent you personally at the closing. Top of Page
What are closing costs? Closing costs are costs that you will incur in the process of obtaining your mortgage.  They typically include fees such as points, appraisal, credit report, flood certification, legal, title insurance, processing fee, document preparation fee and tax service fee. Additionally, at closing, there are escrows for property taxes, Homeowners Insurance and PMI, if applicable. Top of Page
What other costs will be included in my monthly bill beside the principal and interest? In addition to principal and interest, an escrow payment for property taxes, Homeowners Insurance and PMI (if applicable) will be included in your payment. Top of Page
How can I obtain a copy of my credit report? Beginning in September 2005, the three major credit bureaus can assist you in obtaining a copy of your credit report.  There are many websites that can provide that information, such as www.myfreecreditreport.com.  Top of Page
What is the difference between fixed and adjustable rate mortgages? A fixed rate mortgage is a loan where the principal and interest payments (P&I) never change over the life of the loan, since the interest rate never changes.  An adjustable mortgage has an interest rate that will change at various intervals during the life of the loan; therefore, the principal and interest payment will change periodically. Top of Page
What is a point? A point is the equivalent of 1% of the loan amount. For example, if the mortgage is $100,000.00, 1 point would be $1000.00. Usually interest rates are offered in combination with 0, 1, or 2 points.  If you choose to pay 1 or 2 points, your interest rate will be lower.  For example, rates that might be offered are 6.25% and 0 points, 6.00% and 1 point or 5.75% and 2 points. Top of Page
What does APR mean? APR means Annual Percentage Rate.  This should not be confused with your mortgage interest rate.  APR is the yield the lender calculates on your mortgage when it takes into account other prepaid finance charges you will pay at closing. Top of Page
What is Private Mortgage Insurance (PMI)? Private Mortgage Insurance is required when your down payment is less than 20%.  It protects the lender against loss if the borrower defaults on the loan.  The monthly cost will vary depending upon the type of mortgage you have, the PMI product, and the amount of your downpayment. Top of Page
What is "Good Faith Estimate"? A Good Faith Estimate will contain estimates of all costs that are associated with closing your loan.  It must be provided to you within 3 business days of your mortgage application. Top of Page
What are "Caps"? "Caps" are associated with Adjustable Rate Mortgages.  Caps limit how much the interest rate can increase or decrease.  Periodic Caps limit the increase or decrease per adjustment period, whereas a lifetime Cap limits the amount the rate can increase over the life of the loan.  For example, the lender may stipulate that the interest rate on an ARM can increase or decrease up to 2% a year, but not more that 6% over the life of the loan. Top of Page
Can I obtain PMI by myself? No. The lender arranges for PMI coverage on your loan.  PMI products vary.  When you apply for your loan, ask the lender what options are available. Top of Page
If my loan is sold, will the terms of my mortgage change? The terms of your mortgage will not change even if your loan is sold. Top of Page
What does "Escrow" mean? Escrow payments are additional payments paid each month for the purpose of taxes, insurance, and PMI if necessary.  The bank collects these payments from you on a monthly basis and is responsible for making timely disbursements of escrow funds to pay these bills. Top of Page
Where do I make my payments? You can make your payment at any Enfield Federal Savings office or return the payment by mail.  If you mail your payment, be sure to allow enough time so that it is received/processed by the due date. Top of Page
Will I receive a monthly statement, or will I use a coupon book? You will receive a monthly statement. Top of Page
Can I make additional payments on my mortgage? Yes, you may make additional principal payments on your loan at any time. Top of Page