Mortgage Fast Facts

We understand the mortgage process can be long and involves a lot of information that is easy to forget or misplace. That's why we've compiled a list of facts and frequently asked questions!
We want to help facilitate your budgeting needs, however, our mortgages require payment in full each month in order to process a payment. This means that you cannot pay half of your payment at a time; you must have the full amount for us to process the payment. You may take partial payments which will be held in an unapplied account until you have remitted enough to make the full payment, but this will not stop late fees from accruing.

We also understand that some members want to take advantage of the interest savings that a bi-weekly payment option offers. Making thirteen full payments per year is the equivalent of a bi-weekly mortgage payment option. The easiest way to do this is to pay extra every month by adding 1/12 of your regular payment to the normal payment you make each month (ex.: If your regular payments it $1,200, then 1/12 is $100, so your monthly payment would be $1,300. At the end of the year, you will have made the equivalent of an extra mortgage payment, which ends up saving you the same amount of interest as a bi-weekly payment program.).
Arbor Financial has three options for setting up automatic payments.
  1. Pre-authorized transaction - are for account to account transfers.
  2. ACH - you can choose to set up automatic payments from a different institution by simply bringing in a voided check with the signed ACH transfer form.
  3. Online Banking Transfer- transfer funds between your accounts (example: your Arbor Financial checking to your mortgage). You can schedule one-time or reoccuring transfers. Setting up transfers are controled by you and can be done within Online Banking, learn how.
*ACH and Online Banking payments DO NOT auto-adjust! Members must update their payment yearly (if escrowed).
PMI automatically cancels when the loan is scheduled to reach 78% loan to value (LTV).

You can request to have PMI removed if:
  • After 2 years and an LTV of 80% or less (PMI removal form must be submitted to request removal of PMI, an AVM has to be done, and there is a $50 fee).
  • It has been less than 2 years, or the member is above 80%, you may ask to have PMI removed if significant improvements have been made to the home (PMI removal form must be submitted to request removal of PMI, appraisal is required, and there is a $500 fee).
Please contact the Mortgage Servicing Team at 269-544-3186, or by email at, for PMI removal form.
Let us know! We want to make switching your insurance coverage easy. In order to do this, we need to be aware you are making a change so we can guide you through the process.

If you change insurance companies and you don’t have time to call, you can also send the updated policy information or declarations page to or fax it to 269-544-3440.

If you receive a refund check from the old company, please deposit it back into your escrow account. Otherwise, there will be a shortage in your escrow.
  • If the check amount is below $2,500.00, the insurance claim check will be deposited in the member’s account with no holds and the funds will be made available to the member immediately. Arbor Financial Credit Union will request that the member supply us with photos or documentation of the repairs when they are finished, so we can properly document the file.
  • If the check amount is over $2,500.00, the funds will be handled according to the terms of the mortgage which are as follows:
  1. The claim check will be deposited into the member’s account with a hold on the funds.
  2. The Credit Union will release these funds with a written estimate or an invoice from the contractor performing the repairs. The funds will either be released to the member (if the invoice has been paid) or a check will be issued directly to the contractor (if making a down payment or paying an invoice).
  3. We require licensed contractors be used for any work done, so if the member wishes to do any of the work themselves, they must contact the mortgage department for approval before any funds are released.
  4. For a more in-depth information, please call us directly at 269-544-3186 or email us at
  1. If you have an escrow account, the portion of your monthly mortgage payment that goes to your escrow account will adjust each year with the changes in property tax and homeowners insurance premium amounts.
  2. Members who have their mortgage with Arbor Financial Credit Union will receive their Annual Escrow Statement in late January each year, with the payment change going into effect March 1 of each year.
  3. Payment change calculations only happen once a year in January. The Credit Union does not perform a new analysis based on a change in insurance premiums or increases/decreases in the assessed value of the property.
  4. Is your mortgage payment made automatically from another institution?
    • You will need to update your automatic mortgage payment with that institution to reflect the newly adjusted amount shown on your Escrow Analysis Statement prior to March 1.
  5. If your mortgage payments are set up as automatic reoccuring transfers from your Arbor Financial account, then these payments will update automatically according the the Escrow Analysis Statement. If you have special payment arrangements (like rounding your payment up), then contact us to update the payment for you.

Still have questions?

Contact our Mortgage Servicing Team today! Give us a call at 269-544-3186, or send us an email. We're happy to help you!

Buying your own home is a big step. Perhaps it's also time to take stock of all your finances. If you open a checking account at Arbor Financial, you get free access to more than 37,000 ATMs throughout Michigan and across the nation, plus fee-free access to Online Banking, Mobile Banking, Web Bill Pay, and more. It's easy to open your account online or switch your account to become an Arbor Financial member.