Harmony Loan FAQs

• How does the HarmonyLoan^TM feature work?

  After closing on your mortgage, if interest rates fall, you simply log in to a special website and “click” a button to lower your rate without going through a painful, costly refinance.

  See below for more details about how the feature works with fixed-rate and adjustable-rate (ARM) loans.

• What mortgage options may qualify for the Harmony Loan feature?

  This is a special feature of several of our Adjustable Rate Mortgages (ARMs) and Fixed Rate Mortgages. Check with us to see which mortgage products offer this feature.

• When can I use the Harmony Loan feature?

  You can use the feature six months after closing on your mortgage. That is the first opportunity to lower your rate. After the initial six months, you can lower your rate as often as every 120 days.

  Note that your new rate must reduce your current rate by at least 0.25% to be able to use the feature.

• Do you need to re-qualify to reset the rate with the HarmonyLoan^TM feature?

  No! There is no new application process, no appraisal, no underwriting, no credit check, no additional paperwork and no closing to attend!!

  The only qualification is that your loan must be current with NO late payments in the past 12 months.

• Will my loan term start over again?

  No. When you “click” to lower your interest rate using the HarmonyLoan™ feature, your remaining term stays the same. For example, if you “click” the button after 36 mortgage payments on a thirty-year amortized loan, you will still have only 27 years left on your mortgage.

• Will my principal balance ever increase when I use the feature?

  No, since there are no closing costs associated with the HarmonyLoan™ feature, your principal will decrease with regular monthly mortgage payments.

• How does the Harmony Loan Feature work with a fixed-rate mortgage?

  For eligible fixed-rate mortgages, your interest rate can only go down and never back up each time you use the feature. Your rate needs to drop by at least 0.25% for the feature to work.

  You can use the Harmony Loan feature throughout the entire term of your fixed-rate home loan.

• How does the Harmony Loan feature work with an Adjustable Rate Mortgage (ARM)?

  When you originated your ARM loan, you may have selected a mortgage with a fixed rate for a certain period, and then your rate may change each year or on another schedule.

  For example, if you chose a 5/1 ARM, your rate is fixed for 5 years, and at the end of 5 years, your rate may change annually thereafter.

  If you take advantage of the HarmonyLoan™ feature on your ARM, you receive a new fixed period with a new interest rate. For example, if you have a 5/1 ARM and after 3 years you “click” to change your rate, you will receive a new fixed rate for another 5 years. After 120 days, you can still “click” again if the rates change.

• Why would you “click” to reset to a higher interest rate on an ARM?

  You may choose to use the Harmony feature, even if you will get a higher rate, so you can lock in another fixed-rate period. This may protect you from even higher rate changes once your rate starts adjusting.

  Here's how that works: If you have an ARM that is nearing the end of the fixed-rate period (for example, you are in your fourth year of a 5/1 ARM), you may want to “click” the button at a higher rate to lock in another five-year fixed period.

  If rates fall during the new five-year fixed-rate period, you can always “click” the button again and lower the rate. However, if you never “click” to change your rate during your initial fixed-rate period, you will lose this feature at the end of that initial five-year period.

  You cannot use the Harmony Loan features once the fixed period of your ARM ends, and your loan starts adjusting with the markets.

• Can you reset your interest rate below the interest rate “floor” of an ARM?

  Yes. The interest rate “floor” pertains to the adjustment at the end of your fixed-rate period, not the HarmonyLoan™ feature. So if interest rates fall below the interest rate floor, you can reset the fixed-rate period of your ARM loan at the current reset interest rate – even if it's lower than the interest rate floor.

• What rate will I get when I first take out my mortgage with the Harmony Loan feature?

  You'll get a competitive APR based on your credit score, debt-to-income (DTI) ratio, and overall financial situation. Higher scores get lower rates.

• Do I need to join Topside Federal Credit Union to qualify for a mortgage?

  Yes, you do need to become a member. You can find out if you're eligible and then we can help you with your membership application and give you advice about your home loan at the same time!