Your Home, Your Future

It’s possible to get a mortgage with a wide range of credit scores, but a higher score can improve your chances of getting better terms and lower interest rates. Credit scores range from 300 to 850, with the higher the number the better the score.  Want to learn more about your credit score or how to grow it? Check out our free resources:

• Credit Score Learn Page
• Understanding Your Credit Report Video

It depends on your situation! There are many loan programs which allow for less than the standard 20% down payment. For example, some loans, like VA loans and USDA loans offer 0% down payment options, other loans like FHA loans may require as little as 3.5% down. There are also a number of grants and down payment assistance programs that can help make home ownership more affordable. Even if you don’t qualify for one of the specialized loan programs your down payment amount is really up to you, keep in mind, sometimes smaller down payments result in higher monthly payments and/or mortgage insurance.

First-time home buyers have options like conventional loans, FHA loans, VA loans, and more. Each has different eligibility criteria, down payment requirements, and interest rates.

We understand being a first-time home buyer can be confusing. Check out our helpful video on financial tips if you’re buying a home for the first time!

A fixed-rate mortgage has a constant interest rate throughout the loan term, making it predictable. An ARM has an initial fixed-rate period (e.g., 5 or 7 years) followed by adjustments every 6 months. ARMs usually start with lower rates but can increase over time, which adds risk if rates go up.

To get a more accurate picture of the total cost, look at the annual percentage rate (APR) since that includes interest, discount points and other loan fees. Just looking at the interest rate by itself will not give you the total cost the way the APR does.

PMI is insurance that protects the lender if you default on the loan. It is typically required for conventional loans with down payments less than 20%. PMI is added to your monthly mortgage payment or is paid in a lump sum and can usually be removed once you’ve reached 20% equity in the home. Learn more about it here.

Closing costs are the fees associated with the real estate transaction. Typically, you should budget around 2% – 5%, but these costs may vary depending on the bank, real estate agent or title agency. Some lenders offer “no closing cost” loans, but these often involve higher interest rates.

Yes, if you’re looking to refinance your home in addition to a traditional refinance, we offer a low-cost refinance for mortgage customers.

As a mutual bank, our priority is you and your success – and we answer to you, not shareholders. Whether you’re buying your first home or looking to refinance, our team of dedicated loan originators are here to help you through the process from A to Z. Plus, your loan will be serviced in-house (and not outsourced to a different lender!) so if you need to contact us for any reason, the person you’ll reach will always be local. Banking with us certainly has its perks!

If you have more questions about mortgages, the mortgage process or anything else, feel free to give us a call at (877) FFL-1422, chat with us on FFL.bank or fill out the form above and a team member will reach out to you.