The DOY Advantage

The DOY Advantage

We don't play games when it concerns financing your home. DOY’s Mortgage Program is the most popular program administered by DOY. The reason for its success is the process is honest and simple with no surprises. DOY may be your best choice in obtaining or re-financing a mortgage loan.

Here’s why:

  1. No Application Fee.
  2. No Hidden Fees.
  3. Low Fees. On any mortgage loan refinanced by DOY, the fees are split between DOY and the borrower. In the tri-county area the fees range from $295-$400. For new home purchases, the closing costs range from $450-$850 (this includes everything).
  4. Low Fixed Interest Rates. All of DOY’s mortgage loan rates are fixed. Check with DOY for the current rates. Rates depend on the number of years and the amount of equity in the home. DOY’s rates are lower or very competitive with other lenders. Taking into account DOY’s low fees and how the loan interest is computed, the savings could be substantial!
  5. No Prepayment Penalties. If the loan is paid off early or switched to another financial institution, there are no penalties.
  6. No Late Charges. Interest is only paid on the outstanding balance of the loan for the exact number of days of that balance. If a payment is early, the interest is less. Loan interest is not predetermined for each month’s payment. Obtain a loan today and make a payment tomorrow, only one day’s interest is charged on the outstanding loan balance. All the rest of the payment goes toward the principal.
  7. Loans Stay at DOY. DOY does not sell its mortgage loans on the secondary market. The loan never leaves Youngstown, there are no phone trees or out-of-state call centers that only know the borrower by a number. You talk to a real person everytime you call.
  8. No Games. No higher interest rates for lower credit scores. No Private Mortgage Insurance (PMI) tacked onto monthly payment because the down payment wasn't large enough. All borrowers are evaluated equally. Either you are approved or you don't qualify.
  9. Interest Discounts. Once in the mortgage program, the DOY member can obtain lower interest rates for new car loans and/or signature loans.

Consider a DOY Second Mortgage Loan

If refinancing a first mortgage loan would not be a wise financial move (e.g. current interest rate is lower, fewer than five years until pay off), but you need money for some big expenses, a DOY Second Mortgage Loan is an option to consider. All DOY Second Mortgage Loans have fixed interest rates with a maximum duration of ten years. DOY will lend up to 80% of the appraisal value minus the amount still owed on the first mortgage.

At least $5,000 must be borrowed. Fees are very low and once in the program, $5,000 or more can be added to the existing loan for a nominal fee (usually under $150). Just like our first mortgage loans, there are no application fees, prepayment penalties, late charges, etc.

Borrowers Beware

Be careful when mortgage companies advertise low rates. Don't just compare rates. Some finance companies and mortgage corporations are hiding huge costs in the form of points, prepaid finance charges, etc. DOY has refinanced several mortgage loans where these companies have charged $5,000-$11,000 in hidden points and/or costs.

Before signing any documents be certain to look for two forms. By law, the lender must disclose all costs and must adjust the quoted interest rate to reflect these costs.

  1. Truth in Lending Disclosure Statement- if these costs are hidden in the loan, the annual percentage rate must reflect these costs. For example, if they quote you a 4.00% rate, but have added costs into your principal and/or interest charges, the annual percentage rate could be much higher. This is the rate you should be comparing, not the rate that is quoted.
  2. Itemization of Amount Financed and Good Faith Estimate- this form itemizes all the costs outside the costs for the principal and interest of the loan. Fees such as brokers’ fees, document preparation fees, loan origination fees, discount points, etc., must be disclosed.

Finally, examine every document and have each document explained to you by the mortgage lender. After signing all the documents, the law provides three business days for the borrower to cancel the loan without penalty.

PMI… A Big Money Grab

What is Private Mortgage Insurance (PMI)?

It is another stealth way to squeeze more money out of a mortgage borrower. The so-called insurance that the borrower pays is to guarantee that the bank is paid off if the borrower defaults. In other words, if the bank forecloses on the house and cannot sell it for the amount still owed, the insurance pays the difference. Generally the bank requires the PMI when the down payment is less than 20%. If the loan is front loaded (high interest payments at the beginning of the loan with very little going towards principal), you may be paying extra monthly PMI insurance for years and years.

Other Key Facts About DOY's Mortgage Program

  • DOY's First Mortgage Program finances up to 90% of the appraisal value of the property.
  • DOY only provides mortgages on the member's primary residence
  • Once in any of DOY's mortgage programs, you can add ($10,000 minimum) to your existing loan for a nominal fee (usually under $200). There are no prepayment penalties.
  • DOY can set up automatic mortgage payments from your savings account. That way you earn high interest until your payment is due.
  • DOY does business in accordance with the Federal Housing Law.
Equal Housing Lender
DOY's Mortgage Program