Banking FAQs: Mortgages & Home Equity


After you submit your mortgage application, a PSECU mortgage specialist will review your application. We’ll answer any questions you may have and, if qualified, provide you with a preapproval letter if you’re purchasing a home. The preapproval letter lets you know exactly how much house you can afford and helps you make a strong bid to the seller.

Once you find the right house and go under contract, we can move forward in the loan process. At this time, you provide more detailed financial information. Through the process, our underwriters will carefully review your loan. After closing, we’ll service your loan through the life of your mortgage.

If you are choosing to refinance your mortgage with PSECU, the process is very similar, except you won’t receive a preapproval letter.
On average, it takes 45 - 60 days from application date to closing date.

We lend to properties that are: 
  • Located in the state of Pennsylvania
  • Recorded with PSECU listed as first lien holder. The property secures your mortgage loan.
  • Titled after purchase in the name(s) of individual(s), not a trust
  • Owner-occupied homes, vacation homes, or residential investment properties with one, two, three, or four units
  • Condominiums or residences within a Planned Unit Development (PUD) that meet certain criteria1

We do not lend to properties that are:

  • Single-wide manufactured homes
  • Timeshares
  • Not in acceptable marketable condition
  • Residential investment condo or manufactured homes
  • Located outside Pennsylvania
Fixed-rate mortgages have a fixed interest rate for the life of the loan. The monthly payment for principal and interest on a fixed-rate loan stays the same every month for the term of the loan. 

You have the option to buy down the interest rate by paying discount points upfront. You can choose to lock in your interest rate once you’ve signed a sales agreement, or wait until closer to closing. Our current rates are listed below.
Our Adjustable Rate Mortgage (ARM) products offer a competitive starting rate that’s guaranteed for the first fixed rate period of the loan. This initial rate stays the same for one to seven years, based on the ARM product you select. 

After the fixed rate period has expired on an ARM, the interest rate can change every year for the life of the loan. Annual rate adjustments raise or lower the rate within the periodic rate cap limits. ARMs have a lifetime cap, a rate ceiling that the interest rate can never exceed for the life of the loan. 
Yes! We offer jumbo 1-year Adjustable Rate Mortgages (ARMs) of $484,351 to $1 million at a low start rate. 

Caps are 1/5, which means your interest rate will not adjust more than 1% up or down per year. The rate will adjust no more than 5% up or down over the life of the loan. Contact us to discuss your specific situation.

Our jumbo loans have a few qualifications. The property must be:
  • Located in Pennsylvania
  • 1- to 4-unit dwelling
  • Primarily used by the borrower (not an investment property)
  • Titled in the name(s) of individual(s). Living trusts are not acceptable.
The loan-to-value (LTV) ratio is the loan amount displayed as a percentage of a property’s market value. Maximums vary by property type. You don’t have to borrow the maximum LTV, but the guidelines tell you your borrowing limit. Please contact us to discuss your options in detail. 
Mortgage refinancing allows you to pay off your existing mortgage(s) to get a different rate, loan term, or payment. You can also opt to refinance your existing loan and get cash back for another purpose. Please contact us to discuss your options in detail. 
There are no fees for our equity products, unless the Real Estate Equity Loan is being used to purchase land that will be used to build your primary residence. (PSECU requires property insurance.) For information on this type of equity, please call 800.237.7328, extension 3817.

Each point is equal to one percent of the loan amount. Please check out our rates page for interest rates and points available for our mortgage products. Select the appropriate product from the list on the left side of the screen.

PMI (Private Mortgage Insurance) is required on loans with a Loan to Value greater than 80%. This coverage helps protect the lender in case you can't make your payments and default on the loan. Private Mortgage Insurance makes it possible for borrowers with small down payments to buy the home of their choice.

A Real Estate Equity is a fixed rate, closed-end loan with a term of 5 or 10 years. All funds are disbursed when the loan is issued. In addition to primary residences and vacation homes, it can be used for one rental property and land. Some restrictions apply. Payments may be made using monthly coupons or automatic transfer.

A Home Equity Line of Credit has an adjustable rate based on Prime plus a margin. The 5 year open-end draw period is followed by a 20-year repayment period. The loan payment is always based on a 20-year repayment period and is made through automatic transfer on the 16th of each month.

PSECU mortgages must be secured by properties located in Pennsylvania.
Fixed Rate and Balloons:
When applying online, you will have an opportunity to lock your interest rate. If you choose to let the rate float, the interest will not be locked until you notify us that you want to lock it. Some mortgage products require the assistance of PSECU staff. If that's the case with your mortgage application, you'll have the opportunity to lock your rate when you speak with us. We do not offer rate locks on Pre-Approval applications.

Adjustable Rate:
You will receive the lowest rate in effect from the time of application up to the time of approval.

You may request to waive an escrow account if the Loan to Value is 80% or lower, taxes and insurance have been paid timely in the past, and you have the ability to pay them on your own.
Real Estate Property tax bills may be sent to: PSECU, P.O. Box 67013 , Harrisburg, PA 17106, ATTN: Escrow Dept. Please forward the original document only and create a copy to retain for your records.
Currently mortgage deposit images are not available to view online.
On average, it takes 45 - 60 days from application date to closing date.
The maximum you can borrow on a Home Equity Line of Credit is 90% of the appraised value minus any liens. The minimum loan credit line is $5000.

You may refinance your Real Estate Equity Loan or your Home Equity Line of Credit by applying online at or by requesting a paper application at 800.LOAN.555 Monday through Friday 8 a.m. to 9 p.m., and Saturday 9 a.m. to 5 p.m. (ET). If you're refinancing a real estate equity with a new real estate equity, you are required to borrow an additional $5000 above your current Equity loan balance.
Yes. Click here to apply online or request a paper application at 800.LOAN.555 Monday through Friday 8 a.m. to 9 p.m., and Saturday, 9 a.m. to 5 p.m. (ET).

There are three ways that you can advance your Home Equity Line of Credit:

1. Log into your account. Click on "Move Money," and transfer funds from your line of credit to your desired share.
2. Call the Self-Service Telephone at 800.435.6500.
3. Speak to a Member Service Representative at 800.237.7328.

Real Estate Equity Loans and Home Equity Lines of Credit must be secured by properties located in Pennsylvania.

No. Currently PSECU is accepting only owner-occupied residential 1 - 4 unit properties as collateral for this loan type.

No. Currently PSECU is accepting only owner-occupied residential 1 - 4 unit properties as collateral for this loan type.