Home Mortgage Loans

A mortgage is a type of loan used to buy or refinance a house, plot of land or other real estate property. Most homebuyers get a mortgage to finance the purchase of their home.

With a mortgage, the borrower—or homebuyer—agrees to pay back the lender over a specified period of time with interest. The period of time, which is called a mortgage term, can vary from a few years to a few decades. The most common mortgage term is 30 years.

Interest is the cost for borrowing money, and interest rates vary depending on a number of factors ranging from the larger economic environment to the individual borrower's financial situation.

Most people don't have enough cash to purchase a home outright, which is why mortgages are designed to be paid off over time. Using an amortization schedule, lenders divide the loan balance and the expected interest into a series of regular monthly payments. Part of each mortgage payment goes toward the principal—the original loan balance—and another part goes toward interest. Depending on the loan, these monthly payments may include property tax and home insurance as well.

A mortgage is a secured loan, meaning the home is collateral for the loan. If the borrower defaults on their loan, the lender may take the collateral as payment. Once the mortgage is paid off, the lender no longer has any secured interest in the property and the homeowner owns it outright.

When you apply for a mortgage loan, the lender will pull your credit score. Your credit score measures your credit risk relative to the rest of consumers, based on your credit usage history. Higher credit risk scores can mean lower rates and better loan terms.

When you receive a mortgage loan, you'll also receive an escrow account. The lender will deposit part of your monthly mortgage payment into this escrow account. That payment covers taxes and insurance premiums that are typically assessed annually, but with a mortgage are paid monthly so that the lender can reduce the risk that you'll fall behind on your obligations.

A mortgage loan payment is made up of two things—a payment toward the principal amount, and a payment toward the interest. Paying these two things off in equal installments over a set time period is called mortgage amortization. When you first start paying off your mortgage, most of the payment is applied to the interest. Over time, your principal payments catch up until your loan is paid off.

Choosing the right mortgage is just as important as choosing the right house. That's why we offer a variety of products, each with different features and advantages. Plus, our dedicated team of mortgage bankers is here to help you find the right loan for where you are in your life.

Yes. You'll just need to enroll in Online Bill Pay. You can also have your payments drafted each month from your checking or savings account.