• How do I calculate a mortgage payment?
Check out our Home Financing Calculators
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Is there a fee charged or any other obligation if I complete the online application?
There's no cost at all for completing our application. After your loan is approved, you can decide whether you wish to pay the application fee to cover the cost of the appraisal, final credit report, flood certification and the Loan Prospector fee so that we can begin to process your request.
• The interest rate you offer is just a little less than what I am paying now. How do I know if it makes sense to refinance?
The simple rule of thumb for determining if it makes sense to refinance is to analyze the amount that it will cost you to refinance compared to the monthly savings you'll have by reducing your payment. See our Refinance Calculator
.
• How are interest rates determined?
Interest rates fluctuate based on a variety of factors, including inflation, the pace of economic growth, and Federal Reserve policy. Over time, inflation has the largest influence on the level of interest rates. A modest rate of inflation will almost always lead to low interest rates, while concerns about rising inflation normally cause interest rates to increase. Our nation's central bank, the Federal Reserve, implements policies designed to keep inflation and interest rates relatively low and stable.
• What is your Rate Lock Policy?
General Statement
The interest rate market is subject to movements without advance notice. Locking in a rate protects you from the time that your lock is confirmed to the day that your lock period expires.
Lock-In Agreement
A lock is an agreement by the borrower and the lender and specifies the number of days for which a loan’s interest rate and discount points are guaranteed. Should interest rates rise during that period, we are obligated to honor the committed rate. Should interest rates fall during that period, the borrower must honor the lock.
When Can I Lock?
We currently do not offer online rate locks; however, when you are contacted by a Loan Officer that your application has been approved you can request a rate lock at that time.
Fees
There is no fee to lock a rate.
Lock Period
Rate locks are generally offered for a 45 day period. This means your loan must close and disburse within this number of days from the day your lock is confirmed by us.
Lock Confirmation
When your rate is locked, the Lender will send you a letter outlining the terms of your rate lock.
Lock Changes
Once we accept your lock, your loan is committed into a secondary market transaction. Therefore, we are not able to renegotiate lock commitments.
• What is an Adjustable Rate Mortgage?
An adjustable rate mortgage, or an "ARM" as they are commonly called, is a loan type that offers a lower initial interest rate than most fixed rate loans. The trade off is that the interest rate can change periodically, usually in relation to an index, and the monthly payment will go up or down accordingly. Click here for detailed information explaining how ARMs work.
• Are there any prepayment penalties charged for these loan programs?
Our Home Equity Lines of Credit (HELOCs) have prepayment penalties. There is a $500 prepayment penalty if paid off and closed within first 36 months from closing.
• Can I apply for a loan before I find a property to purchase?
Yes, applying for a mortgage loan before you find a home may be the best thing you could do! If you apply for your mortgage now, we'll issue an approval subject to you finding the perfect home. We'll issue a pre-qualification letter online instantly. You can use the pre-qualification letter to assure real estate brokers and sellers that you are a qualified buyer. Having a pre-qualification for a mortgage may give more weight to any offer to purchase that you make.
When you find the perfect home, you'll simply call your Loan Underwriter to complete your application. You'll have an opportunity to lock in our great rates and fees then and we'll complete the processing of your request.
• If I apply, where will the closing take place?
We use a local network of closing agents and attorneys to conduct our loan closings. We'll schedule your closing to take place in a location that is located near your home for your convenience. We'll deliver our loan documents and wire transfer your loan funds to the closing agent or attorney prior to closing so that they'll have plenty of time to prepare for your closing.
• What is mortgage insurance and when is it required?
First of all, let's make sure that we mean the same thing when we discuss "mortgage insurance." Mortgage insurance should not be confused with mortgage life insurance, which is designed to pay off a mortgage in the event of a borrower's death. Mortgage insurance makes it possible for you to buy a home with less than a 20% down payment by protecting the lender against the additional risk associated with low down payment lending. Low down payment mortgages are becoming more and more popular, and by purchasing mortgage insurance, lenders are comfortable with down payments as low as 3 - 5% of the home's value. It also provides you with the ability to buy a more expensive home than might be possible if a 20% down payment were required.
The mortgage insurance premium is based on loan to value ratio, type of loan, and amount of coverage required by the lender. Usually, the premium is included in your monthly payment and one to two months of the premium is collected as a required advance at closing.
It may be possible to cancel private mortgage insurance at some point, such as when your loan balance is reduced to a certain amount - below 75% to 80% of the property value. Recent Federal Legislation requires automatic termination of mortgage insurance for many borrowers when their loan balance has been amortized down to 78% of the original property value. If you have any questions about when your mortgage insurance could be cancelled, please contact your Loan Underwriter.
• What is Bay State Savings Bank’s Holiday Schedule?
View Holiday Schedule.
• What are e-Loan Statements?