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• What is a mortgage?

  A mortgage is a loan secured by your home. Mortgages can be used to purchase homes and property, to refinance an existing home loan, and in some cases to provide cash or pay off other debt.

• What is an adjustable-rate mortgage (ARM) and how is it different than a fixed-rate mortgage?

  An ARM is a mortgage loan that has an interest rate that can change periodically during the life of the loan. Most ARMs are subject to change only once per year. Some can have a fixed interest rate for a specified number of years at the beginning of the loan and then change annually after that. For example a 3/1 ARM has a fixed rate for the first three years of the loan and then can change once a year after that.

  Your loan documentation will specify how often your rate can change as well as the minimum and the maximum amount it can change each period and how much it can change over the life of the loan.

  When the rate on an ARM changes, the payment will change. That’s why your Aquila Standard mortgage expert will be sure that you can afford your loan at the initial rate as well as at the maximum rate. The last thing you want is to have your payment increase beyond what you can afford to pay. Aquila Standard is dedicated to making sure that our members don’t find themselves in this situation.

  With a fixed rate loan, your rate does not change for the life of the loan, regardless of the market.

• How long will it take to fund my mortgage loan?

  Aquila Standard strives to have all approved mortgage loans funded within 30 days of approval. However, between approval and funding there are a number of things that need to happen, including:

  • Verification of income and other application data
  • Appraisal of the property and dwelling
  • Review of the title records associated with the property
  • Creation of the loan documents
• How much money do I need for a down payment for a mortgage?

  Down payment requirements will vary based on the mortgage program you are interested in and your individual financial situation. Talk to your Aquila Standard mortgage expert for information specific to you and your loan.

• What paperwork do I need to include with my mortgage application?

  Your mortgage expert will be able to tell you specific documents you will need, but these documents are commonly requested:

  • Tax returns or other proof of income, including documentation of any supplemental income you receive from sources other than your primary employment, such as rental or investment income.
  • Recent bank and/or brokerage statements. This may also include paperwork for your retirement assets.
  • A list of your recent addresses, usually two years’ worth.
  • The purchase or sales agreement if you have already made an offer on a home or condo.
• How long does it take to get a mortgage application approved?

  The approval process is dependent on the number of applications received, but usually only takes a couple of days, once we receive a completed application.

• What are points in relation to mortgages?

  Points are fees you pay to a lender when you fund your mortgage in exchange for a lower interest rate. Aquila Standard offers programs with points and without points. Talk to your mortgage expert to determine whether paying points makes sense for you.

• What is escrow (AKA an impound) account?

  In many cases the lender who holds your mortgage loan will be responsible for making sure that your property taxes and property insurance premiums are paid in a timely fashion. To do that, your lender will collect a certain amount above your designated monthly principal and interest payments and hold it in an account, called an escrow account or an impound account. Sometimes you will see this amount listed with your regular payment as “T&I” When your tax or insurance payments come due, the lender will pay them from this escrow account.

  Because taxes and insurance can change from year to year, the amount you pay each month can change as well. Each year your lender will provide you with a statement showing how much they’ve paid for taxes and insurance on your behalf and what they expect to pay in the current year.

  You may be eligible to pay these items yourself, which would remove any escrow payment from your monthly payment.

• Can I refinance (refi) my mortgage with Aquila Standard?

  Whether you are looking to refinance your existing mortgage to save money or get cash, the mortgage experts at Aquila Standard can help you get the right loan without the headaches of the typical mortgage process.