Frequently Asked Questions for an Equibuilder 2nd Mortgage
1. How is the property value determined?
At application, the Credit Union will determine if we can use the county property tax notice to determine the value or if an appraisal is needed Whenever possible the Credit Union will use your recent property tax notice and a drive by evaluation to determine value.
2. What are the hazard insurance requirements?
Hazard insurance will be required. Minimum coverage should be enough to cover the 1st mortgage balance and the new home equity loan. Flood insurance is required if your home is located in a flood hazard area.
3. What are the monthly payments?
This closed-end fixed rate loan can be amortized up to fifteen years. Payments are due on the 1st of each month. The payment consists of principal and interest only.
4. What is the interest rate?
For further information, check online or call 435-753-4080 for updated information.
5. What are the closing costs?
Closing costs typically would include an origination fee, appraisal/property evaluation fee, credit report, title insurance, endorsements, recording fee, underwriting fee, closing fee, document preparation, and flood search. The Credit Union would prepare a Good Faith Estimate of Closing Costs and a Truth In Lending disclosure for your review within three days of your application. This will explain precisely how much your loan will cost you with all related fees and charges.
6. Is there a prepayment penalty?
There is no prepayment penalty for early payoff.