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. eBanking 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 eBanking, learn how.
*ACH and eBanking 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 $400 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 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.
We will deposit the check into your primary savings account and place a management hold on the funds. We hold the funds until we get a bill or receipt, and then we pay the bill from the savings account. Making it as easy as possible for you is our goal!
If you have an escrow account, then your escrow payment will adjust each year. Please make sure to update your payments annually as ACH and eBanking payments do not automatically adjust.

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 eBanking, 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.