Mortgage FAQs

A mortgage loan payment is often made up of principal, interest, property taxes, and insurance. While the principal and interest portion of the payment will NOT change, property taxes and insurance likely will over the years. Once a year, Union Square performs an escrow analysis on each mortgage loan to see if the premium renewal for an insurance policy and/or annual property taxes have increased or decreased. If there is a change, the payment will be affected accordingly.

This is the portion of a loan’s monthly payment that is set aside to pay property taxes, homeowner’s insurance (hazard insurance) and private mortgage insurance if applicable. As each of these items come due, the necessary money is pulled from the escrow account to cover the payments. An escrow analysis is done once a year to make sure members’ escrow accounts are properly funded to cover these items. The analysis may reveal an adjustment in payment is required to meet required expenses. Typically, escrow accounts are required on loans that have a loan-to-value higher than 80 percent.

PMI is insurance that provides a layer of protection for lenders and investors that purchase mortgage loans should the loan default. It also allows members the ability to purchase a home and avoid a large down payment. PMI is typically required for loans that have less than 20% equity in the property being purchased or refinanced.

Union Square Mortgage continually strives to shorten the length of time between loan application and closing. However, there are some things required to close that the lender does not have control over. For example: most loans require an appraisal, title work, and possibly a survey to be completed prior to closing. Each of these items is done independently from the Credit Union, which in some cases can cause delays. Typically, the third-party services mentioned will not be ordered until the option period of the contract has expired, so members should keep this in mind when writing a contract. The Union Square Mortgage team does its best to meet the date of closing a member contracts with a seller.

No, they are not the same thing, but both are designed to provide protection for buyers. The appraisal assesses the market value of a property and presents any safety and/or soundness issues that could affect the resale value of the home in the future. An inspection is a much more detailed report of the home. Everything from light switches and appliances to electrical boxes and HVAC is tested. Appraisals more often times than not are required. On the other hand, inspections are not always required but recommended.

Yes, we have 0% down and 1% down payment programs to help members with homeownership if they do not have the asset strength to qualify for a traditional conforming loan product or if their preference is to simply maintain a higher level of liquidity. Each of these products has its own list of requirements. Speak with a Union Square Mortgage loan officer to learn more.

At Union Square Mortgage, our goal is to match members with a loan product for which they are well-qualified and have the ability to repay over the term of the note. However, we realize sometimes the unexpected happens; things change, and we want to be there to help if possible. Call 940-720-8120 to see if Union Square Mortgage can help.