The Credit Union will close early Tuesday, December 24 at 12 pm and will be closed Wednesday, December 25 in observance of the Christmas Holiday. See our Holiday Hours.
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Contact Our Mortgage Department at 888.369.2207 with any questions.
The costs associated with closing an Essential mortgage loan are often much lower than other lenders. By keeping the application process efficient, we are able to reduce the overall costs at closing. Contact us for a one-on-one consultation!
The monthly mortgage payment mainly pays off principal and interest, taxes and PMI (private mortgage insurance) if applicable.
PMI stands for Private Mortgage Insurance. These are privately-owned companies that provide mortgage insurance that protects lenders against some or most of the losses resulting from a default on home mortgages. Essential only requires PMI on a Fannie Mae Conventional Mortgage Loan, when the loan exceeds 80% loan to value.
An escrow account is established at the time of the loan closing and when you make your monthly mortgage payment, you will be contributing one twelfth of your yearly insurance premiums and taxes into your escrow account. When your insurance and taxes are due, Essential will disperse the funds from your escrow account and pay the yearly premiums directly to your insurance provider and the tax assessor's office. Escrow accounts are required on all first mortgage loans, with the exception of unimproved land loans.
Mortgage payments are based on the loan amount, the loan interest rate, the term of the loan (30 yrs, 20 yrs, 15 yrs, 10yrs) and the amount of monthly escrow account payments.
The loan to value ratio is determined by the amount of money you borrow compared to the purchase price or appraised value of the property.
For example: On a property with an appraised value of $100,000, and a loan amount of $95,000, this would result in a 95% loan to value.