Loan Products

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Mortgages NMLS Number 786195

Purchases — Medina Savings & Loan finances the purchase of owner-occupied 1-4 family residences within our CRA area (Orleans and Eastern Niagara Counties). Loans outside our CRA area (Orleans and Eastern Niagara Counties) usually require some reasonable connection to the area, such as the borrower being employed within our area. We offer fixed and adjustable rate mortgages. Please see qualifications criteria.

Refinances — Medina Savings & Loan offers three types of refinances:

  1. Cash-out refinance up to 80% Loan-to-Value with no PMI
  2. Up to 90% Loan-to-Value with PMI* when it pays off a first and existing second mortgage with no cash out.
  3. Refinance up to 95% Loan-to-Value with PMI* where it pays off a first mortgage lien with no cash out.

The value is determined by an appraisal performed by an appraiser from our approved appraiser list. Closing costs can be paid from the proceeds provided the above Loan-to-Values are not exceeded.

* PMI – Private Mortgage Insurance is NOT a Deposit, NOT FDIC-Insured, NOT Insured by any Federal Government Agency, NOT Guaranteed by the Bank, and May Go Down In Value.

Construction/Permanent — Medina Savings & Loan is well known for its outstanding construction/permanent mortgage program. This program saves the borrower thousands of dollars in closing costs by having a building and loan agreement covering the construction period with the loan automatically rolling into a permanent mortgage at the conclusion. The construction rate is at our applicable low mortgage rates, not a higher construction loan rate, during the construction period. The permanent rate is fixed when the certificate of occupancy is obtained. Medina Savings & Loan breaks the loan amount into three draws. See our draw schedule. We typically work with the borrower based on circumstances in between draws, where warranted. Medina Savings & Loan will allow the borrower to act as its own general contractor. Our loan-to-value criteria is based upon the lesser of the cost to build or the appraised value. The borrower needs reasonable documentation of estimated cost to build when they are acting as the general contractor.

Purchase construction — Medina Savings & Loan, being a local institution, provides an outstanding mortgage product for purchase construction loans. This is used when the buyer wishes to purchase property and make extensive improvements to the property all in one mortgage. The product works very similarly to our construction/permanent product in that we do one closing that saves the customer thousands of dollars at a low construction rate. The permanent rate is fixed at the time that the project is completed and the final draw is dispersed. The draw schedule is altered to reflect the purchase of the property at the first draw at the same percentage as the loan-to-value. The borrower needs to provide a list of the improvements to be made along with the estimates.

Investor 1-4 Family non-owner occupied — Medina Savings & Loan provides mortgage loans to purchase or refinance investment property. The loan-to-value is based upon the lower of the purchase price or the appraised value. All loans are done as adjustable rate 1-year or 3-year mortgages. In addition, Medina Savings & Loan will finance purchase/renovation of investment property.

Terms — Medina Savings & Loan offers fixed rate mortgages for various terms to meet your budget and goals. Medina Savings & Loan believes it has the best combination of rate and closing costs. Let us show you.

QUALIFICATIONS CRITERIA

Credit Score: Generally, the rates quoted are for credit scores of 640 or higher, as reported to us from the applicable credit bureau. Scores below 640 will be considered based on circumstances surrounding the credit history problems and/or strong other above criteria regarding LTV and debt-to-income ratios. A minimum credit score to obtain PMI is 660.
Loan-to-Value:
Purchases – fixed rate up to 95% with PMI or 80% without
Purchases – adjustable rate up to 95% with PMI or 80% without
Refinances – cash out up to 80% without PMI
Refinances – existing first and second up to 90% with PMI or 80% without
Refinances – existing first only with no cash out up to 95% with PMI or 80% without
Construction – up to 95% with PMI or 80% without
Purchase/construction – up to 80% without PMI
Investor 1-4 family – up to 80% without PMI
Debt-to-Income: There are two debt-to-income ratios that we use to qualify an individual. Call or visit our branch for details.

FIXED RATE MORTGAGE

Term: Various terms to meet your budget.
Interest Rate: Fixed for the term of the loan
Loan to Value: 95% (81-95% requires PMI)
Description: Interest Rate and Monthly Payment are determined at time of application. The rate and payment amount will not change over the life of the loan (unless the loan is refinanced at the customer’s request). The loan will be amortized in full over the loan term. No penalty for early payoff.

ADJUSTABLE RATE MORTGAGES

Medina Savings & Loan offers a one-year adjustable rate mortgage and a three-year adjustable rate mortgage.

1-Year Adjustable Rate Mortgage
Term: Various terms to meet your budget.
Rate Adjustment Period: 12 months
Rate Index: 1 Year Treasury Constant Maturity
Margin: Call or visit our Branch for details.
Rate Caps: ±2% in each one year adjustment period, ±6% over life of loan
Rounding: to nearest .125%
Loan to Value: 95% (81-95% requires PMI)
Description: One year adjustable rate mortgage loan. Interest rate will change every 12 months from date of first payment. The initial rate will be calculated by taking the most recently published one year Treasury constant maturity index (published weekly) and adding the current index margin. This rate will then be rounded up or down to the nearest .125%.

Annual rate adjustments will be calculated the same as the initial rate, except that the index used will be the one year Treasury constant maturity index that is available 45 days prior to the payment change date. This allows time to produce a notice to the borrowers of their upcoming change in interest rate and monthly payment.

Rate adjustments, up or down, will be limited to 2% in any one year and 6% over the life of the loan.

3-Year Adjustable Rate Mortgage
Term: Various terms to meet your budget.
Rate Adjustment Period: 3 years
Rate Index: 3 Year Treasury Constant Maturity
Margin: Call or visit our Branch for details.
Rate Caps: ±2% in each one year adjustment period, ±6% over life of loan
Rounding: to nearest .125%
Loan to Value: 95% (81-95% requires PMI)
Description: Three year adjustable rate mortgage loan. Interest rate will change every 36 months from date of first payment. The initial rate will be calculated by taking the most recently published three year Treasury constant maturity index (published weekly). And adding the current index margin. This rate will then be rounded up or down to the nearest .125%.

The periodic rate adjustments will be calculated the same as the initial rate, except that the index used will be the three year Treasury constant maturity index that is available 45 days prior to the payment change date. This allows time to produce a notice to the borrowers of their upcoming change in interest rate and monthly payment.

Rate adjustments, up or down, will be limited to 2% in each three year adjustment period and 6% over the life of the loan.

HOME EQUITY

Home Equity Line of Credit
Term: Various terms to meet your budget.
Rate Adjustment Period: Monthly
Rate Index: Current APR is 3.25% as of 12/31/14 this is subject to change
Rate Ceiling: 18%
Rate Floor: 5%
Maximum Loan to Value: 85%
Monthly Payment: 1/180th of outstanding balance
Description: A home equity line of credit (HELOC) is a credit line based on the equity (appraised value less any outstanding mortgages) on a borrower’s principal residence. The amount borrowed on the line of credit will move up and down during the term of the loan as the customer writes checks against the line and makes monthly payments of principal and interest. The borrower’s monthly payments vary from month to month depending on how much of the credit line has been drawn down. The payment is interest only during the draw period and after five years it is 1/180th of the amount of outstanding principal and accrued interest existing at the end of each month. The borrower may make lump sum payments of principal at any time, so it is conceivable that a HELOC may go from zero to the full amount of the credit line and back to zero several times during the term of the loan.
Fees and Charges: No fees are paid for the customer to open. Medina Savings & Loan incurs costs to open the line of credit generally ranging from $500 to $1,500 depending upon the size of the line of credit. If the line is closed out within three years these costs, itemized out at closing, are due. These costs include application fee, appraisal fee, NY State mortgage recording tax, property search, and flood certification. Closeout of the line does not mean paying the loan down to zero.
Tax Deductibility: You should consult a tax advisor regarding the deductibility of interest and charges for your account.
Maximum APR: The maximum APR that can be charged during the life of the loan is 18.00%.

Home Equity – Fixed Rate
Term: Various terms to meet your budget.
Rate: Fixed based upon grid consisting of LTV, credit score, and term (number of years).
Payment: Constant monthly payment over the life of the loan.
Loan to Value: Maximum loan amounts are based on equity in home. Loans can be approved up to 85% of appraised value less outstanding liens.
Closing Costs: New York State mortgage recording fee, property lien search and possibly an appraisal depending on estimated value.

Property Improvement Loan – Fixed Rate
Term: Various terms to meet your budget.
Rate: Fixed based upon grid consisting of LTV, credit score, and term (number of years).
Payment: Constant monthly payment over the life of the loan.
Loan to Value: Maximum loan amounts are based on equity in home. Loans can be approved up to 85% of appraised value less outstanding leins.
Closing Costs: New York State mortgage recording fee, property lien search and possibly an appraisal depending on estimated value.

This product is the same as Fixed Home Equity except we will consider a percentage of the improvements to be made into the value.

CONSUMER LOANS

Auto Loans – Medina Savings & Loan finances the purchase of new and used autos. Fast, friendly service. Payments made right to Medina Savings & Loan. Auto pay available (direct deductions from your checking account). On new car purchases if the dealer is offering a rebate or special low financing, generally you are better off accepting the rebate and financing through Medina Savings & Loan.
Loan approvals: Applicants with good credit are approved based upon credit report only for quick, fast closings.
Applicants with minor credit problems but OK credit are approved based upon total monthly debt payout to the total monthly income ratio.
Applicants with credit problems will be evaluated on an exception basis depending upon circumstances, employment history and monthly debt to income ratio. Medina Savings & Loan’s internal policies limit the amount of exceptions that can be approved which could cause the loan to be denied.

Other Secured Loans – Medina Savings & Loan finances the purchases of other large purchases such as boats, motorcycles, motor homes, etc. The loans are fixed rate over a designated period with a fixed monthly payment. Qualifications are based upon credit report, month debt-to-income ratio and loan to value. Loan term is based upon type of personal property being purchased.

Unsecured Loans – Medina Savings & Loan offers personal loans on a limited basis. Our Lending Policy limit is $10,000 for good credit rating applicants that are homeowners within our community reinvestment area (CRA). Reduced limits are available based upon these factors as well as qualifying debt-to-income ratio. The loans are a fixed rate for a fixed term with a fixed monthly payment.

Overdraft Line of Credit – Medina Savings & Loan offers lines of credit tied to a Medina Savings & Loan checking account. The line is accessed in $100 increments. For example, if a check is written that overdraws your checking account by $30, one hundred dollars is added to the checking account adjusting the balance to $70. A one hundred dollar line-of-credit-loan is created. A separate monthly statement on overdraft line of credit activity is generated and mailed each month. A minimum monthly payment is required against that loan number. Mailing a deposit to your checking account does not make a loan payment.

Lines of credit of $500 or $1,000 are established based upon your credit score criteria. Higher limits require monthly debt-to-income ratio meeting our lending policy.

Passbook Loans – Medina Savings & Loan issues loans secured by passbook and/or certificates of deposit for various terms. The rate on the loan is 2% above the yield on the deposit account securing the loan. As the underlying deposit account yield changes, so does the passbook loan rate. The underlying passbook or certificate is held in safekeeping by Medina Savings & Loan. There are advantages to this type of loan versus other loan types. First, by doing the loan, you have access to your certificate without paying an early withdrawal penalty. Medina Savings & Loan lends up to 90% of the deposit balance. Second, the rate on this loan may be less than other loans. Third, you can take advantage of higher long-term interest rates on deposits without fearing access to your money if you need it by borrowing against it. Fourth, many people find it hard to save. So, once the money has been saved, this is a method to keep the savings intact by paying this loan back monthly.