FAQs

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Home Loans

What types of loans does Piedmont Federal offer?
We offer a variety of fixed-rate and adjustable-rate loans, including our Piedmont Affordable Loan (PAL) designed especially for first-time homebuyers in Forsyth, Davie, Davidson, Stokes and Yadkin counties. For more information, click this link: mortgage types.
I've heard about lenders selling their customers' loans. Why is that an issue?
Many financial institutions sell their loans to other companies or investors in order to have more money available for other purposes. That way, the institution's money isn't tied up in long-term loans. The problems lie in the fact that their loans can be sold and resold many times over the life of the loan to investors located anywhere in the country. And that can create problems in getting your questions answered in a timely manner. If you have a question, whom do you call?
Does Piedmont Federal sell its loans?
No. Piedmont Federal is a portfolio lender, which means we make loans based on assets we hold and completely control. As a result, your loan remains with Piedmont Federal from start to finish. You deal with one company, and usually one person, through the life of your loan. So you will always have ready access to your account information or to get answers to your questions.
How long does it take to close a loan?
Piedmont Federal closes most loans in 3 to 4 weeks. The length of time varies based on the amount of time required to get the property appraised and the credit and income verified.
What information will I need to bring to apply for a loan?
We've developed a convenient checklist that you can print to make sure you have everything you need before you visit your Piedmont Federal office. Simply click this link: what to bring.
What are your closing costs?
Piedmont Federal has some of the lowest closing costs of any lender. There is an origination fee of 1% of the loan amount. Other normal fees include a property appraisal fee of usually $300, a credit report fee of $11, and attorney fees of $400-$500. Most borrowers also include title insurance, which protects them from any defects in the title on the property, such as undiscovered liens or improper title transfers. It costs approximately $2 per $1,000 borrowed. There are several governmental fees that also apply, such as a recording fee, which is around $82, and a flood insurance certification of $12. Your local Piedmont Federal loan officer can give you a complete list of updated costs and any variances that might apply to your region.
How do I find Piedmont Federal's rates?
Like any financial institution, our rates can change weekly. For the latest mortgage and interest rates, please call 336.770.1000, contact your local office or click this link: current rates.
When is my rate locked in?
Piedmont Federal locks in your rate when you complete an application. Your rate is then guaranteed for up to 60 days. If Piedmont Federal's rates go up during those 60 days, you are protected from any increases. More important, if Piedmont Federal's rates go down before your closing, you automatically receive the lower rate. It's one more reason to work with Piedmont Federal.
Do you make construction loans?
Piedmont Federal does not make construction loans. However, we have a 9-month commitment program that locks in your mortgage rate for 9 months. You pay a 1% commitment fee (which replaces the origination fee usually paid at closing), and the rate is set at .25% above the current rate for the term you select. So you can begin construction knowing what your home loan rate and payments will be.

Refinancing

Why should I consider refinancing my loan?
Refinancing a loan from a higher fixed rate to a lower rate, or from an adjustable-rate loan to a fixed-rate loan, might mean substantial savings for you in the long run and guarantee your monthly payments won’t increase. You might want to combine a first mortgage and an equity line with high rates into a single mortgage to save money, or you might need extra funds for home repairs or other financial needs. However, whenever considering refinancing, you should check all immediate fees, such as closing costs, points and application fees.
How do I find out if refinancing is right for me?
Use this simple calculator to find out how much money you might save by refinancing your current loan. If you have any questions, just stop by a local Piedmont Federal branch and let us guide you through the process.
Can I refinance to pay off my current first mortgage and/or my equity line loan?
Most definitely yes, as long as the new loan is not higher than 80% of your home's current appraised value, and the new monthly payment (including principal, interest, taxes and homeowners insurance) doesn't exceed 28% of your total gross monthly income and your total monthly debt does not exceed 36% of your gross monthly income.
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Unlike many other lenders, at Piedmont
Federal we do not sell your loan.
That way your money stays right here.
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