A mortgage is a loan from a financial institution used to purchase a home or other property. The borrower agrees to repay the loan amount plus interest over an extended period, usually 15 to 30 years, in monthly installments. The property being purchased serves as collateral for the loan.

PFFCU offers several types of mortgages, including fixed-rate mortgages and adjustable-rate mortgages (ARMs) in multiple term lengths. There’s no one-size-fits-all strategy – your best choice will depend on a few different factors, including your desired monthly payment and how long you plan to stay in your home. Our expert Mortgage Advisors are here to help you decide.

Closing costs are expenses associated with finalizing a real estate transaction. They vary based on a number of factors, including the type of home loan you choose. Fees paid to PFFCU are generally lower than what traditional banks charge. Aside from lender fees, common examples of closing costs include:

• Title insurance
• Title agent fees
• Government recording charges
• Appraisal fees
• Attorney fees

The four main components of a homeowner’s monthly payment often go by the acronym PITI:

1. Principal – the part of your mortgage payment that goes toward paying down your balance
2. Interest – the cost of borrowing money from PFFCU, paid according to an amortization schedule
3. Taxes – property tax payments that are collected by PFFCU, held in escrow, and paid when due
4. Insurance – homeowner’s and PMI (private mortgage insurance), also collected and paid by us

Your PITI payment amount will depend on your home’s purchase price, the type of loan you choose, and other factors.