Mortgage

Pre-approval provides valuable information and advantages:

• See how much mortgage you can afford
• Become an attractive applicant with a more secure financing plan
• Increase your negotiation and bargaining power
• Speed up the closing process, since most of your financial information is already collected 

Visit our Mortgage Rates page to stay up to date on our current mortgage rates.

The Federal National Mortgage Association (FNMA), typically referred to as Fannie Mae, is a government-sponsored enterprise (GSE) that purchases mortgage loans and mortgage-related securities on the secondary mortgage market.

Fannie Mae does not offer mortgages directly to consumers but does purchase them from approved lenders which helps guarantee a market for loans. This reduces risk for lenders and allows them to offer more loans to consumers at lower rates. 

Typically your closing costs will be between 3-6% of your total loan and must be paid in cash. That said, closing costs vary by situation, state, and lender. To evaluate your closing fees, consider three categories:

Note: This may not be an exhaustive list. 

If you are refinancing an existing mortgage, you may be able to roll your closing cost into your loan as long as the Loan To Value (LTV) ratio requirements are met. This option is not available for new mortgages.

To see if your mortgage qualifies, contact our Mortgage Team.

A mortgage note (promissory note) is the legal contract involved in taking out a mortgage loan. By signing, one agrees to repay the loan amount as well as any interest that accrues within the specified amount of time.

While the mortgage itself pledges the title to real property as security for a loan, the mortgage note states the amount of debt and the rate of interest and obligates the borrower, who signs the note, personally responsible for repayment.

In foreclosure proceedings in certain jurisdictions, borrowers may require the foreclosing party to produce the note as evidence that they are the true owners of the debt.

Follow the steps below to set up your mortgage payments in Online Banking:

• Log in to Online Banking
• Select your Mortgage.
• Your mortgage will open with a Make a Payment button at the top.
• Then you will have the option to Enroll in Automatic Payments or Make a One-Time Payment.

You are also able to make the mortgage payment directly in online banking from a P1FCU account by selecting "Loan Payment" under the transactions tab of the left-side menu.

• Choose Transactions from the left side menu
• Click Loan Payment
• Choose the account you would like to pay From
• Select your mortgage from the To drop-down
• Fill in the payment details.
• If you would like to make the payment recurring, check off the Make this recurring box. If you choose this option, choose the Frequency, Start, and End Date.
• Click Submit

Your mortgage payment must be made in full once a month. If you prefer to break your payment up, you can create a mortgage holding account to hold your funds until your payment is made. Additional payments made in excess of your full payment amount must be allocated specifically toward your principal, interest, or escrow. Your payment will not automatically change because of additional payments. Please speak to your Mortgage Loan Officer with any questions you have about this process.

An escrow account is a legal holding account used for larger transactions between two parties. Mortgage lenders use an escrow account to pay your homeowners insurance and property taxes on your behalf.

The amount we collect for your escrow account may vary depending on changes to your property taxes and insurance premiums. Any variances are reflected in your Escrow Account Disclosure Statement. 

At a minimum, there will be a review of your escrow account at least once a year, based on the state in which your property is located. You will receive an Escrow Account Disclosure Statement each time a review is conducted.

We collect funds and hold them in your escrow account to pay your real estate taxes and required insurance premiums.

We do not collect funds for interim bills, non-required insurance, special or added tax assessments, or other types of non-real estate-based taxes unless they are included on real estate tax bills. We also do not receive or collect supplemental tax bills or occupancy tax bills in the state of Idaho.

Shortages occur when your escrow account balance is insufficient to cover prior account activity. Your new monthly payment is based on projected account activity, which accounts for any changes in taxes or insurance premiums. Any surplus in your escrow account will be reflected in your next escrow analysis.

You will not be charged any penalties or additional interest on your escrow account if a shortage isn't paid in full. Any unpaid shortage will be included into the next escrow analysis and your new mortgage payment amount will be adjusted to cover the difference.

You can request to waive the escrow account requirements and pay the taxes and/or homeowners insurance yourself.

No, you do not need to send in a copy of your property tax bill as long as your home loan has an escrow account. We will obtain a copy of your property tax bill from the State or County.

When your escrow payment changes, you will receive an Escrow Account Disclosure Statement reflecting those changes. If you use an external bill pay service, you will need to update your payment amount in your bill payment service to match your new payment amount.

You may send additional funds to your escrow account at any time. However, we will pay your required tax and insurance bills when they are due regardless of your escrow account balance. Your next escrow analysis will reflect any escrow account shortage or overage.

Please indicate that the payment is for escrow and mail it to:

Your overage check is based on the previous year's taxes and insurance premiums. Your new payment amount is based on the current year taxes and insurance premiums.

You can visit our Mortgage Center to set up an appointment with one of our Mortgage Loan Officers or apply for a refinanced Home Equity Loan online.