Mortgage Loans

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. Give us a call at (907) 523-4700, and we can help you determine exactly how much you can afford.

We have some interactive mortgage calculators you can experiment with.

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.

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. Our True North mortgage team can help you evaluate your choices and help you make the most appropriate decision.

You can start your application here.

Just as you are eager to get into your new home, we are eager to get you there as soon as possible! Generally, the items that take the longest to receive are the appraisal and the title work. We always want to get the appraisal and title work ordered as soon as possible to avoid any delays. If you are purchasing a new home, we will do our best to meet the closing date you and the seller have agreed upon on your purchase contract.

Private Mortgage Insurance (PMI) is provided by a private company to protect the mortgage lender against losses that might be incurred if a loan defaults.  It is required if the loan amount is more than 80% of the home’s value. 

This insurance benefits lenders and investor, but it helps homebuyers too. Because True North FCU is protected by mortgage insurance, we can offer loans with low down payments. Without mortgage insurance, we would need to require a down payment of at least 20% of the loan amount.  

In addition to any required down payment, you will also need funds to cover the costs of getting a mortgage. These costs could include the fees for your property appraisal, tax service, flood certificate, title commitment, and recording fees. Additional costs may also be involved in a purchase depending on the situation, including points, inspection fees, pre-paid interest, taxes, insurance, and Private Mortgage Insurance (PMI).   The costs can vary significantly depending on your purchase contract, as the seller may cover some of these costs.

As part of your pre-qualification, we will provide you with a fee estimate that includes all the fees that you could pay - giving you a very good idea of what the total costs will look like. 

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).

There are government insured loans such as FHA, VA, USDA or Hud 184.  Each of these programs are unique and have specific requirements.  We will explore these options with you to see if they benefit you.   

Once we receive your application, we assess your situation to see what program is the best fit. Available assets, current homeownership status, consumer credit history, and property location are just a few of the many factors used to determine which program will work best in each scenario. 

Every borrower’s story is unique. No matter what your story is, rest assured knowing that we will work closely with you to find the most compatible program for your needs. 

For your initial pre-qualification, we will ask questions about your income, assets, credit history and employment. We will pull a credit report upon receipt of your application. For most applicants, we will be asking for your most recent 30 days of paystubs, your 2 most recent years of W2’s and 2 months of asset statements. Every application is unique---so if fewer, additional, or different documents will be required, we will let you know.  

You can expect great service and a quick response time, all from real people. Getting started has never been easier: visit our website and complete an online application for pre-qualification or stop by one of our branches to set up an in-person appointment! Once you have submitted your application, one of our Mortgage Loan Originators will reach out to review the details of your application and ask additional question.

True North is owned by our members - without you, we would not be here!  Because of this, our focus differs from the average mortgage provider; prioritizing service and quality over profit and quantity.  We are always looking out for the best interests of our members, working to serve your needs whenever and wherever possible.

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

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.