Mortgage Frequently Asked Questions

Yes, at this time HFCU does offer loans for all these types of properties except mobile homes.
Yes, currently we offer VA loans, but not FHA at this time. Please check back as we hope to start offering them soon!
No, at this time HFCU does not. Currently, we offer fixed rate mortgages only.
Yes, currently we do offer jumbo loans up to 1.5 million.
When a lender offers and you decide to pay a discount point, you are essentially paying part of your interest to the lender up front. By paying the discount point, you will lower your overall mortgage interest rate—as well as your monthly payment—over the life of the loan.

One discount point is always equal to 1% of the loan amount.

For example, one point on a $100,000.00 loan would require payment of $1,000 in order to pay the discount point at closing. The longer you plan to remain in a property or stay in your mortgage, the more advantageous it may be to pay points.

There is no requirement to pay discount points; whether or not you decide to pay points is completely up to you.
If you no longer want to pursue a loan with HFCU, you may cancel/withdraw your loan application at any time by contacting your loan officer.
By federal regulation, if, within 14 calendar days from the date we process your cancellation/withdrawal request, you decide you want to reopen the application, we may reopen the application at no additional cost to you.

If a cancelled loan application is reopened within 14 days of the cancellation, you, the borrower will receive your original rate, loan terms, and rate lock expiration date.

After 14 calendar days has elapsed, HFCU is no longer permitted to reopen a cancelled/withdrawn application, and you will need to start a new application and obtain a new rate lock.
A mortgage refinance is where a borrower/s applies for a new mortgage loan to replace the mortgage loan you currently have on your home.
You may want to consider refinancing your mortgage in order to better the loan terms if rates have dropped since you obtained your previous mortgage, or if you have equity in your home and you are interested in paying off high-interest-rate debt, shortening the length of your repayment term for your mortgage, or lowering your monthly mortgage payment.
Generally speaking, one or more of the following conditions needs to be present before you should consider refinancing your mortgage:
  • Mortgage interest rates are falling
  • Your home has significantly appreciated in market value
  • You’ve been making payments on your original 30-year mortgage for less than ten years
Yes. HFCU offers a variety of mortgage options that allow you to tap into your home’s equity and take cash out. Consult an HFCU Mortgage Loan Officer for the best cash-out refinancing option for you.
Yes, in most cases you will need to have your house appraised in order to determine its current value in order to refinance. However, depending on the circumstances, an appraisal may not be required. Your loan officer can determine if your circumstances require an appraisal before you start the refinancing process.

There is a difference between a property inspection and an appraisal. An appraisal is required by most mortgage lenders in order to support the value of the real estate and the terms of the mortgage agreement.
No, HFCU does not require an inspection, but if you’re purchasing a home, we highly recommended that you obtain a property inspection and make your purchase offer contingent on the findings of that inspection.
Texas does not require an attorney to close a mortgage or mortgage refinance.

South Carolina does require a mortgage and mortgage refinance to close with an attorney. If you’re not sure of your state’s requirements, check with your mortgage loan officer.
Conventional, fixed-rate mortgage loans are available with HFCU with a down payment as low as 3%.

Please keep in mind, with a down payment under 20%, mortgage insurance (aka: MI, aka: PMI) will be required on your loan, which will increase the cost of the loan and will increase your overall monthly payment.

HFCU’s mortgage loan officers can explain the options available to you based on your circumstances, so you can choose what option works best for you and to ensure eligibility.
Some types of mortgage and homeowner’s costs may be tax-deductible: discounted points, interest paid on a home loan, and property taxes may qualify for tax-deduction.

Consult a tax advisor for advice about your situation.
An interest rate is the cost to borrow money expressed as a yearly percentage. It’s based on the principal amount of the loan and is used to calculate the monthly principal and interest payment. Note: The annual percentage rate (APR) also represents the cost to borrow money as a yearly percentage, but it’s a more complete measure of a loan’s cost than the interest rate alone. That’s because the APR includes the interest rate, plus discount points, fees, and other credit charges you need to pay to borrow money.
Lenders, like HFCU, consider a variety of factors when determining a mortgage interest rate and costs of that mortgage loan. The process of reviewing these factors to determine your rate is called “risk-based pricing.” Typical factors lenders look at include:
  • Credit profile: a credit report that shows your current debts and payment history. The report mortgage lenders pull will also include an average credit score based on your overall credit history on all three major bureaus (Equifax, Experian, and Transunion.)
  • Loan to Value ratio (LTV): The amount of money you want to borrow to purchase a home, compared to the appraised value of the property. Generally, the lower your LTV ratio, the lower the risk of the loan, and the lower your interest rate and loan costs will be.
  • Debt to Income ratio (DTI): The amount of your mortgage payments and total debt payments compared to your income. A higher DTI ratio may mean a higher risk loan, and therefore higher interest rates and costs to you.
  • The type of mortgage loan: a mortgage purchase loan versus a mortgage refinance loan, or a cash-out refinance mortgage versus a rate-and-term refinance mortgage may affect overall risk and interest rate.
  • Additional risk factors: We may also consider other risk factors when determining your interest rate and costs, including previous bankruptcies, foreclosures, or unpaid judgments.
You may be able to lower your interest rate by making changes that lower your risk factors described above.

Here are some of the things you may want to consider:
  • Putting more money down and lowering the LTV ratio.
  • Clearing any errors on your credit report that are causing your score to be lower.
  • Adding a co-borrower or co-signer with additional income and/or a higher credit score to support the loan. (For this option, you may need to start a new loan application.)
  • Changing the number of years on your mortgage loan term.
  • You also may be able to lower your rate by paying discount points.
Interest rates are influenced by the financial markets and can change multiple times a day. The changes are based on many different economic indicators in the financial markets.
Mortgage interest rates may change many times every day. The rate lock feature allows you to stop the clock on the interest rate and keep it the same, regardless of what is going on in the market, for up to 30 days.

When you lock your interest rate, the rate stays the same from the time of the rate lock until the rate lock expiration date (as long as there are no changes to your loan application that would affect your rate).

If you don’t lock your interest rate, it can move up or down based on market conditions. This is called “floating” the interest rate.

Even if your rate is locked, it can still go up or down if there are changes to your application, such as:
  • The type of loan you are applying for or your down payment amount changes.
  • The appraisal on the home you want to buy or refinance comes in higher or lower than expected.
  • Your credit score changes when your credit is repulled before loan closing.
  • Some of your income information, such as bonus or overtime income, cannot be verified by the lender.
Proof of homeowners insurance will be required before you can close your mortgage loan. Typically, you will need to present an insurance binder to your lender and pay for one year’s worth of homeowner’s insurance coverage up front. A homeowners insurance (or hazard insurance) policy covers loss from damages to your home, your belongings and accidents as outlined in your policy.
Mortgage insurance is required if you have less than 20% equity or down payment in your home at the time of the loan. It is required if the LTV of the home is less than 80%. It protects the mortgage lender from losses if a borrower is unable to make payments and defaults on the loan.
You may have options to cancel your PMI based on the original value of your home or by ordering a new appraisal to indicate that the loan amount of your mortgage is less than 80% of the value of your home.
Title insurance protects the borrower and/or the lender from errors, disputes, and omissions regarding the title/deed of the home being purchased. The coverage for the borrower applies only if they purchase their own separate policy, called owner’s coverage) against any loss resulting from a title error or dispute.
All mortgage lenders, including HFCU, require lender’s coverage title insurance for an amount equal to the mortgage loan. The title insurance coverage for the lender lasts until the loan is repaid. As with mortgage insurance, it protects the lender, but the borrower pays the premium for the cost of the coverage at closing.

Payments can be mailed to PO Box 19549 Sugar Land, TX 77496-9549
There is a payment coupon included in your closing package; you should start receiving a monthly statement after your first billing cycle, approximately 30 to 45 days after closing.
Yes, you can make payments from your HFCU share account (savings, checking, and money market) by:
  1. Logging into account
  2. Select Transfer
  3. Choose the Transfer from account (HFCU Savings or HFCU Checking)
  4. Choose Pay to account (you should see your Mortgage and any other loan and savings/checking you are not paying from)
  5. Select Amount to Pay
  6. Click Submit
You will have an option at your mortgage closing to enroll in a mortgage payment EFT/ACH payment option, aka: automatic draft, by filling out the automatic payment form included in your closing packet and attaching a voided check so HFCU can set up the automatic payment after the loan closes with no further steps from you, the borrower.

If you want to set up this process after your mortgage closes, please contact HFCU member service for the appropriate form by calling 346-476-5145. Once received, please fill the form out, sign, and email directly to mortgageservicing@houstonfcu.org.
No, you cannot make a mortgage payment with a credit card, however, you can setup automatic mortgage payments, so that your monthly payment can be withdrawn automatically from your HFCU checking/savings account or a checking/savings account you hold at another financial institution. Instructions for both options are listed above.
No, your mortgage loan number is not the same as your HFCU account number. Your mortgage loan number will be located on your billing statement which you should receive 30-45 days after your mortgage closing.
When you make your regular monthly mortgage payment, you can include an additional amount to be applied directly to your principal. If you’re paying by check, please indicate by writing the amount of the extra principal payment on your Mortgage Account Statement coupon where designated. Additional principal payments will only be applied after the current month’s full payment has been applied.
An escrow account allows us to pay the required insurance and/or taxes on your property for you. You pay a portion of your taxes and/or insurance premiums as part of your monthly mortgage payment. Then, when taxes and/or premiums are due, HFCU pays the taxes and insurance due on your behalf with the money in your escrow account.
Every year, we review your escrow account to make sure there’s enough money in it to cover your taxes and/or insurance premiums. We send you a summary statement of this report, called an escrow analysis. It includes a review of activity in your escrow account during the past 12 months, with projections for the next 12 months. This helps us determine the amount you need to pay into your escrow account each month, so we can pay your taxes/or insurance expenses on your behalf for the next 12 months. Your escrow account may need to be adjusted during the course of your mortgage, based on changes to your property taxes and/or insurance costs.
There are a few reasons why you might not have enough money in your escrow account to meet minimum required balance:
  • Your property taxes and/or insurance premiums increased.
  • Your taxes were reassessed.
  • Your insurance provider(s) changed.
  • The due date of your property taxes and/or insurance premiums changed.
  • You made fewer escrow payments into your account than expected.
  • Your starting escrow balance for the 12-month period was lower than expected due to the higher payouts the prior year.
  • If you have questions about an increase in your property taxes or homeowners insurance premiums, please contact your local taxing authority or insurance agent.
Yes, you can contact mortgage servicing for assistance via email at mortgageservicing@houstonfcu.org or calling 346-476-5145 and requesting to speak to mortgage servicing.
Yes, if the value of your home increases and your taxes increase, if you escrow your taxes and insurance, your payments could increase. The taxes assessed on your property are based on the previous year’s tax value.
Houston Federal Credit Union (HFCU) is your mortgage loan service provider.
If you’re unable to make your payment for any reason, please contact our Mortgage Servicing department by emailing them at mortgageservicing@houstonfcu.org or call 346-476-5145 and ask to speak to someone in the “Mortgage Servicing” department.
Year-end interest-paid statements (IRS Form 1098) are mailed out by the end of January. Email us at mortgageservicing@houstonfcu.org if you don’t receive it by February 15.

You may also be able to access a copy of your IRS Form 1098 by going to the Account Details tab for your mortgage account in HFCU Online Banking.
At this time we do not offer bi-weekly or semi-monthly payment options.
A mortgage lien release (in some states/territories this document may be called a reconveyance deed) is a document sent by your mortgage company to your local county recorder’s office after your mortgage loan is paid off.

The lien release states that lien holder is releasing its rights to the property. The county recorder’s office will record the lien release.

Timeframes vary by county and can take up to six months for recording.
Please allow 90 days after the mortgage loan has been paid off before contacting the applicable county recorder’s office to obtain a copy.

If a copy is not available with the county recorder’s office after 90 days, please email mortgageservicing@houstonfcu.org or call the HFCU Member Service team at 346-476-5145 and request to speak to mortgage servicing in order to submit a lien release request.

When contacting HFCU member service, please have the loan number available for the lien in question. If you do not have a loan number, please be prepared to provide the below information:
  • Full Name of all borrowers on the loan
  • Property address
  • Loan amount and year of lien
Please allow HFCU 15 business days to process the lien released request and submit the request to the county.
There is no charge to have a payoff statement faxed to you directly or to a third party authorized by you.
Yes, you must be financing a home or own a home in your name in order to do a Home Equity loan. Your home’s equity is the dollar amount that is available to borrow against after subtracting what you owe on your mortgage (and any other outstanding liens) from your home’s current market value.
The amount you can borrow from your home’s equity is largely determined by your available equity amount, property type, credit qualifications, and state requirements based on the home’s location. To determine your available equity for a primary residence, in Texas, take 80% of your home’s appraised or fair market value and subtract the balances of any outstanding mortgages and liens on the property. In South Carolina take 90% of the home’s appraised or fair market value. If you qualify, the minimum home equity line of credit amount offered by HFCU is $5,000 and in most cases the maximum amount offered by HFCU is $350,000.
HFCU charges no origination fees. Standard closing cost fees apply.
The average number of days from application to approval will vary, depending on your credit history, the equity in your home, and the financing program selected. HFCU may be able to approve your financing more quickly if you apply on the HFCU website.

By applying online, you may be conditionally approved instantly, subject to verification of your application information.
The average time for closing varies, though the minimum is 10 days from approval. There are some state mandated right of rescission and disclosure requirements that must occur before an equity loan can be funded. These mandated wait times vary by state.
Interest rates vary based on the market and the prime rate set by the federal government. The annual percentage rate (APR) on a loan is the cost to borrow money expressed as a yearly percentage. For home equity mortgage loans, excluding home equity lines of credit, it is a fixed rate, and it includes the interest rate plus any other charges or fees.

For home equity lines of credit (HELOCs), the APR is just the interest rate plus a preset margin (as defined in your home equity line of credit agreement). The rate is variable and subject to change, based off the prime rate set by the federal government.
Home Equity Loans can be structured for loan repayment terms that include 5 years, 10 years, 15 years, 20 years, and 30 years.
Home equity lines of credit (HELOCs) have a draw (borrow) period of 10 years and 1 month. During the draw period, you can access available equity without reapplying. Once the draw period has ended, your outstanding loan balance will convert to a repayment period of up to 20 years.
For a Home Equity loan, your monthly payments will include both principal and interest.

For home equity lines of credit, your minimum monthly payment will be $100.00 and may change depending how many times you draw from the credit limit and how often the federal government changes the Prime Rate. Your payments are recalculated monthly to repay your principal balance over the remaining months of your draw period and your repayment term.
A home equity line of credit has a variable interest rate that is calculated by adding a preset margin (as defined in your home equity line of credit agreement) to the Prime Rate as published in the Western Edition of the Wall Street Journal “Money Rates” table. Your rate and payments will increase or decrease as the Prime Rate changes.
A minimum advance of $4,000 applies in Texas on a HELOC and a minimum of $1800 applies in South Carolina on a HELOC. The loan must have at least $4000/$1800 in available credit in order to request a draw on the HELOC (Depending on the state where the home is located.)
Payments can be mailed to PO Box 19549 Sugar Land, TX 77496-9549
There is a payment coupon included in your closing package; you should start receiving a monthly statement after your first billing cycle, approximately 30 to 45 days after closing.
Yes, you can make payments from your HFCU share account (savings, checking, and money market) by:
  1. Logging into your eTeller (online banking) account
  2. Select Transfer
  3. Choose the Transfer from account (HFCU Savings or HFCU Checking)
  4. Choose Pay to account (you should see your Mortgage and any other loan and savings/checking you are not paying from)
  5. Select Amount to Pay
  6. Click Submit
You will have an option at your mortgage closing to enroll in a mortgage payment EFT/ACH payment option, aka: automatic draft, by filling out the automatic payment form included in your closing packet and attaching a voided check so HFCU can set up the automatic payment after the loan closes with no further steps from you, the borrower.

If you want to set up this process after your mortgage closes, please contact HFCU member service for the appropriate form by calling 346-476-5145. Once received, please fill the form out, sign, and email directly to mortgageservicing@houstonfcu.org.
No, you cannot make a mortgage payment with a credit card, however, you can setup automatic mortgage payments, so that your monthly payment can be withdrawn automatically from your HFCU checking/savings account or a checking/savings account you hold at another financial institution. Instructions for both options are listed above