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What is a down payment? 

A down payment is the initial cash you put down when you are buying your home. It represents a percentage of the total purchase price, and the buyer will often take out a mortgage loan to finance the remainder.

With a larger down payment, the buyer needs to borrow less, monthly mortgage payments are lower, and less is paid in interest over the loan term.

At Ascentra, a fixed-rate home loan requires a minimum 5% down payment and a first-time homebuyer adjustable rate mortgage loan requires a 3% down payment.  To avoid paying private mortgage insurance, a down payment of 20% is needed. 

The down payment funds can come from a variety of sources.  Oftentimes, people use assets like savings or retirement accounts.  Additional sources for funds include gifts from family members, grants or secured borrowed funds.  

Help may also be available in the form of down payment assistance programs.  At Ascentra, we offer a $7500 first-time home buyer grant for qualifying individuals.*

All down payment funds require documentation.  We want to make the process as simple as we can.  We are here to guide you and make sure your home buying experience is as smooth as possible.

We are your mortgage experts.      

Should I refinance?

This is a very good question, especially if rates are low!

The general rule of thumb is that if you can save at least one point in interest (for example lowering it from 4% to 3%), you can definitely save money in interest.  And often times, you can lower your payment or even the term of the loan down from, say, 30 years to 15 or even 10.

But while that may be a general rule, the most important question is “What is YOUR goal?”  

Some reasons you might want to refinance are

• To save money each month with a lower payment.
• To pay off your loan sooner by shortening the term of the loan.
• To consolidate other debts into one easy monthly mortgage payment.
• To borrowing against your home’s equity to make improvements or upgrades to your home.

Or maybe you are just unhappy with your current lender because your loan is constantly moving from one investor to another.  That won’t happen at Ascentra because we service all of our loans locally.  So when you need assistance WE will be here to help.

At Ascentra, we are your mortgage experts.

What is Escrow? 

An escrow is essentially an account that holds funds for your annual taxes and homeowners insurance throughout the year.  With each monthly mortgage payment you make, money is held in an account by the lender, then those funds are used to make your annual property tax payments and home owners insurance payments on your behalf.

When you escrow the lender will add 1/12^th of your insurance premium and 1/12^th of your tax bill to your monthly payment, so the lender has enough set aside to pay the bills when they are due.

It is important to know that escrow accounts are regulated, and all lenders are required to follow the same rules.  If you are purchasing a home and have less than a 20% down payment or you have less than 20% equity when you refinance, lenders require you to escrow your taxes and insurance as a part of your monthly payment.  If you are putting down at least 20% or have at least 20% equity on a refinance, you have the choice if you want to pay your taxes and insurance on your own. At Ascentra we do not require you to escrow in this situation, it is entirely up to you.

Annually our escrow department will do an escrow analysis, which includes new insurance premiums, new tax rates, and a 2-month cushion that is allowed by the government. We then calculate your new monthly payment based on those factors. 

Your mortgage payment may go up or down year to year depending on changes to your property taxes or insurance rates. 

If your escrow comes up short for any reason, you have the option to pay any shortage or you can finance that amount out over the next 12 months of mortgage payments.

At Ascentra, we handle all of our loan servicing in house, so if you ever have any questions, we are here to help.  We are your mortgage experts.

What is PMI?

PMI is short for private mortgage insurance. PMI is insurance required on mortgage loans for borrowers in two specific situations.

If you don’t submit a 20% down payment when purchasing a home, PMI is required.

OR If you don’t have 20% equity in your home when you are refinancing, PMI is required.

PMI is not homeowners insurance. Private Mortgage Insurance actually protects the lender in the instance that you stop making payments on your loan. The cost of PMI is included in your monthly mortgage payment.

You can request to stop PMI once your reach 20% equity in your home.  These requests are evaluated based on your payment history.  PMI is automatically canceled once you reach 78% equity in your home.

It is always a good idea to read your mortgage statement and be aware of the amount of equity you have in your home, since stopping PMI can save you money each month.

Here at Ascentra, members receive letters annually letting them know the percentage of equity in their home. This makes it really easy to track when you can cancel your private mortgage insurance.

At Ascentra, we handle all mortgage servicing in-house.  So if you have questions, we are here for you.  We are your mortgage experts.

“Today Ascentra is Making Sense of Home Equity Line of Credit”

A home equity line of credit, or HELOC, can be a quick and convenient way to access funds for your next home improvement project or major life expense.  

Like a credit card, a HELOC is a form of revolving credit that turns your home into cash.

It gives you the flexibility to access funds and use them when needed over a period of time, usually 5 to 10 years, known as the draw period.

Once the draw period is up, monthly payments are made to repay the loan during a repayment period, which is typically 20 years.

The interest rate on a HELOC is based on your balance and the prime rate.

Most lenders let you borrow up to 80 percent of your home’s value; at Ascentra, you may borrow up to 100 percent.

Unlike other loans, the interest on a HELOC could be tax-deductible, and generally has a lower interest rate.

Head to Ascentra Credit Union and see if a HELOC can help you with that remodel you’ve always wanted.