Helpful Advice

Wilmington Savings Bank Now Offers FHA and VA Loans

In addition to more traditional home loans, Wilmington Savings Bank is also now offering FHA and VA loans.

An FHA home loan is a mortgage insured by the Federal Housing Administration, according to the U.S. Department of Housing and Urban Development. It is an alternative to a conventional mortgage, and are generally intended to help people with limited down payment funds or modest credit history. A major difference between an FHA loan and a conventional mortgage is that FHA borrowers only have to put down 3.5 percent on the purchase. Closing costs may also be lower on FHA mortgages.

A Veterans Affair, or VA, loan entitlement is a basic entitlement of $36,000 that is available to eligible veterans seeking a VA home loan. Most lenders will loan up to four times the veteran’s entitlement on a home without requiring the veteran to make a down payment. VA loans are subject to credit and income qualifications and the property being purchased must appraise for the price being asked for it. The VA does not set a limit on how much a qualifying veteran can borrow when looking to finance a home, and most VA homes are purchased with no money down.

Anyone interested in learning more about the FHA/VA loan options offered by Wilmington Savings Bank may stop in the local office and discuss with a loan officer.

How Do I Know if I Should I Refinance My Mortgage?

Many homeowners ask the question “should I refinance?” There’s not always a simple answer to that question. It depends on a variety of factors and the particular circumstances of the homeowner.

Refinancing a mortgage means to pay off an existing loan and replace it with a new one. Homeowners look at refinancing for a number of reasons, including opportunities to:

  • Obtain a lower interest rate
  • Shorten the term of their mortgage
  • Take advantage of a home’s equity to finance a large purchase

Remember, there is a cost to refinancing, and a lower interest rate isn’t the only factor to consider. Here are some questions to ask before you decide whether or not to refinance:

How long do you plan on living in your home?

If you don’t plan on staying in your home for more than a few years, it might not be worth refinancing. Even if you lower your monthly payments, you may not be in the home long enough to recoup the costs of the refinance.

How much are the closing costs? How long before you would break even?

Closing costs will vary depending on the rate, so you must look at those costs. You also must consider how long it will take you to break even and start to see some savings. For example, if the closing costs to refinance are $3,000 and you'll save $200 a month on the mortgage, then it would take 15 months in order to break even.

As a general rule, if you can recoup the closing costs within two or three years, and you plan on staying in your home for several years beyond that, refinancing is probably a good move.

What’s the difference in the interest rates?

How much savings is a good incentive to refinance? If you can lower your interest rate by at least ½ %, then it's worth looking into refinancing.

If you can shorten the terms of your mortgage in addition to lowering your rate, you can potentially cut years off of your mortgage and save thousands of dollars in interest over the life of the loan.

Something else to think about is private mortgage insurance (PMI). If the equity in your home has gone up significantly and you're currently paying PMI, you may be able to refinance and get rid of your PMI. This would help save even more on your monthly mortgage. You typically need at least 20% equity in your home to avoid paying PMI.

Refinancing can be a great financial move if it reduces your mortgage payment, shortens the term of your loan or helps you build equity in your home more quickly.

If you do decide to refinance and end up saving a significant amount of money on your monthly mortgage payment, remember to put that money to good use. Pay down debt, put it into savings or put it into your retirement account.

The lending service providers at Wilmington Savings can discuss the ins and outs of refinancing and help you decide if it’s the right move for you.

Visit the bank at 184 North South Street, Wilmington, OH, 45177, or online at . Call 937-382-1659. Like Wilmington Savings Bank on Facebook.

Safeguard Important Information by Shredding Personal Documents

On Saturday, April 28, 2018, Wilmington Savings Bank, in collaboration with Wilmington City Schools, will offer a FREE Shred-It Day for the community.

At the event, the public may safely discard personal documents to protect important information and avoid identity theft.

Shredding and destroying certain personal documents is critical in this day and age. Disposing of your documents securely can prevent identity theft and protect personal and financial information.

You should shred documents that contain your date of birth, account numbers, social security numbers and your signature. Some examples include:

  • Address labels from junk mail and magazines
  • Old bank statements
  • Reconciled ATM receipts
  • Canceled and voided checks
  • Paid credit card statements
  • Expired passports and driver’s licenses
  • Documents containing passwords or PIN numbers

Do NOT destroy documents such as birth certificates, Social Security cards, wills and life insurance policies. Keep those in a safe place like a bank safe deposit box.

The FREE Shred-It Day takes place 8 a.m. until 11 a.m. April 28th in the Wilmington High School parking lot, 300 Richardson Place, Wilmington, OH 45177.

For more information, call the bank at 937-382-1659.