What makes West Point Bank better than competition with respect to real estate lending?
West Point Bank is a community bank that takes pride in customer service. We will provide you with a 7 to 10 day closing, as opposed to six to eight week closing from our competiton. Our rates and closing costs are very competitive. Should any problem ever arise, you can speak with our loan officers directly and quickly. This is a promise!
What fees are involved with respect to a real estate loan at West Point Bank?
At West Point Bank we are committed to keeping our closing costs at a minimum. Depending on the amount of the loan, and the rate offered closing costs include:
- Loan Origination fee (1-2% of the loan amount)
- Documentation Fee ($184.00)
- Attorney Fees for titlework ($190 - $570)
- Recording Fees - ($36 - $69)
- Flood Search - ($11)
- Escrow Deposit (Only required for primary residences)
- Appraisal cost for loans over $250,000
...And that's all!
Does West Point Bank charge a pre-pay penalty fee?
No! West Point Bank does not charge a penalty for early payoff on real estate loans. We encourage making lump sum payments whenever possible, while also applying extra payments to principal immediately, unless requested otherwise by you!
Is it better to pay much higher closing costs, and get a slightly lower interest rate or pay a slightly higher rate and pay low closing costs?
|(20 Year Loan)|
|West Point Bank||Competition|
|Payoff (7 Years)||$73,582.94||$73,688.13|
|*The above is for illustrative purposes only. Interest rates may vary.|
Notice, the competition's customer is paying $1,500.00 extra in closing costs for a monthly payment that is merely $0.69 less. In the short term, a slightly higher interest rate with low closing costs saves you money when compared to a slightly lower interest rate with high closing costs. For example, compare the illustration above; the payoff would be $73,582.94 as opposed to $73,688.13 which is the payoff of the competition. Seeing as the average home owner refinances or sales their homes in seven years, you would save $105.19 by banking with West Point Bank.
Are adjustable rate mortgages unfavorable to me?
With West Point Bank our real estate mortgages are set on an amortized term with a portion of that term fixed. For example, if you have a 30 year mortgage, your loan is amortized for 30 years, with a 10 year fix. After that 10th year, your loan rate is adjustable each year with a restricted cap on how high or low your rate can adjust. A restricted adjustable rate mortgage can be favorable to you because changes in lifestyles are guaranteed. Most home purchasers will achnowledge that they do not plan on keeping their mortgage 10 years from closing. Therefore, it's more realistic to have an adjustable rate mortgage that saves you money.
What is PMI?
PMI is an acronym for Private Mortgage Insurance. PMI is usually required when the new homebuyer has less than a 20% down payment towards the purchase of their new home. Mortgage insurance protects the lender only. It does not provide an insurance protection whatsoever to the borrower.
Does West Point Bank charge PMI?
No! PMI is just one more needless added cost to the borrower that is not tax deductible.
Should I care if my mortgage is sold on the secondary market?
Yes! Many problems can arise during the duration of your loan. You may have questions about payoff information on end of year tax information, which may be difficult to acquire through another bank. If your loan is sold to an unfamiliar bank, in another state, it can be almost impossible to have your questions answered and problems solved.
Does West Point Bank sell loans to the secondary market?
No! We quarantee your loan will stay with us until it's paid in full.