A Community Bank for All Your Personal Banking Needs

While people often wonder whether a great interest rate or lower closing costs are more important, the two factors are closely linked. There are different ways to structure a loan based on these variables, and it is possible to achieve both a great rate and great closing costs. Alternatively, one can opt for a lower interest rate accompanied by higher closing costs. A third option is to accept a higher interest rate in exchange for lower closing costs. It is essential for borrowers to evaluate both the interest rate and the closing costs together when making a decision.

Asking “what is the rate” is considered an impossible question to answer. This is because there are numerous loan programs available, each offering a range of potential interest rates. Instead of focusing solely on the rate, individuals should explain their unique situation to a loan officer. The loan officer can then perform a comprehensive analysis to determine qualification options and identify the most suitable strategy based on those specific circumstances.

Closing costs and mortgage rates can vary between lenders, and it is important to understand how they interact. Consider the following when evaluating loan options:

• Compare both costs and rates: It is essential to look at both the interest rate and the associated closing costs together.
• Beware of hidden trade-offs: Some lenders may advertise very low interest rates, but then offset them by charging thousands of dollars in high closing costs.
• Perform a direct comparison: When shopping for a loan, always compare both the interest rates and the closing costs across different lenders to determine the best overall value.

Guardian Savings Bank offers the lowest closing costs in the area. There is a $250 application fee, which is credited back to the customer at the time of closing. An origination fee of $250 is charged. Customers are responsible for title fees, which are paid directly to the title company.

Obtaining a mortgage involves several associated costs that borrowers must account for:

1. Lender Fees: Lenders charge an application fee to process the mortgage.
2. Service and Processing Costs: Borrowers are responsible for paying for an appraisal and necessary title work.
3. Escrow and Government Fees: Funds must be collected to establish an escrow account, and there are various fees payable to the county.
4. Prepaid Interest: Borrowers must pay interest that accrues while the new loan is being set up and during the transition from the current loan.

Funding an escrow account is a significant home-buying cost that often surprises buyers. Key details regarding this expense include:

Escrow Components: Most banks require buyers to prepay for several months of property taxes and insurance.

Insurance Premium: In addition to monthly escrow collections, buyers typically must pay a full 12-month insurance premium upfront.

These funds are collected to ensure the home remains properly insured and that tax obligations are met. Escrow funding is a separate requirement from the standard down payment and typical loan costs.

Unfortunately, our Savings, Checking and Certificate of Deposit rates are not posted on our website. However, you can call your local branch to get any product rates and disclosures. Find your branch here.

An escrow account holds funds for the payment of your taxes and/or insurance. As each mortgage payment is made, a portion of your payment is deposited into the escrow account. Guardian will use funds from this account to pay your tax and/or insurance bills as they are due.

Your monthly escrow payment is calculated by adding up all applicable bills we expect to pay on your behalf for the next year and dividing it by 12. We maintain a minimum required balance (also called a cushion) in your escrow account for unexpected increases in your taxes and/or insurance. If your account has a shortage as determined on your annual mortgage escrow statement, this may increase the monthly payment. Please refer to your most recent annual mortgage escrow statement for further explanation.

View a fictitious example below:

We generally suggest having an escrow account on your mortgage because it combines all mortgage related expenses into one trackable payment each month. However, some homeowners will be required to maintain an escrow account for a number of reasons. Some common reasons include:

• The amount of equity in your property.
• Your property is in a High-Risk flood area and the loan was originated after 1/1/16.
• Your loan had a hardship modification.
• You have an FHA or Rural Housing Loan.

Some escrow accounts may be eligible for cancellation. Some initial requirements to cancel escrow include:

• No delinquency within the last 24 months
• Your loan to value ratio is 80% or less. Loan to value is the amount of your current principal balance as compared to the original value of your home.

It is important to note that these are not all potential requirements. If you would like your escrow reviewed for eligibility, please contact our escrow department at (513) 842-0971 or via e-mail at [email protected]. Please include with your request a document with your full name, account number, the specifics of your request and your signature for review.

No. In most cases, you do not need to send us copies of your county or municipal property tax bills. Guardian receives property tax information directly from the taxing authorities as part of our tax monitoring process.

If you receive a property tax bill, please keep it for your records.

There are some situations where we may still need information from you. Please email a copy of the bill or supporting documentation to [email protected], if:

• You receive an off-cycle, supplemental, corrected or delinquent tax bill
• Your taxing authority grants, removes, or modifies a property tax exemption
• You have disputed your property tax assessment or bill with the taxing authority
• You receive correspondence indicating unpaid taxes, penalties, or a tax lien

Important: For non-escrowed loans, payment of property taxes remains the responsibility of the borrower. Guardian does not pay property taxes on behalf of non-escrowed accounts.

Yes. If your loan includes an escrow account for property taxes, Guardian works to pay property tax bills on time, including during any applicable discount period offered by various taxing authorities.

For loans without an escrow account, payment of property taxes, including any available discounts, remains the responsibility of the borrower.

We maintain a minimum required balance (also known as a cushion) in your escrow account for unexpected increases in your taxes and/or insurance.

If you have a primary mortgage with Guardian, absolutely! Home equity products are not eligible for escrowed accounts. There are a few ways an escrow account can be opened:

• At loan origination and closing.
• Email or fax a written request, along with your most recent tax and/or insurance bills you would like to add to your escrow account to [email protected] or fax to (513) 923-3070 Attn: Escrow Department.
• Give us a call at (513) 842-0971 Monday through Friday 8am-5pm EST.
• Visit one of our local branches.

Click here to find the nearest Guardian Savings Bank branch.

Generally once a year, we perform a review of your escrow account in order to determine if the escrow portion of your monthly mortgage payment is able to cover the annual requirements for your real estate taxes, and/or insurance premiums. We are required under the Real Estate Settlement Procedures Act (RESPA) to disclose to you in an annual mortgage escrow statement, also known as an escrow analysis, the results of this review and its effect on your monthly mortgage payment. Occasionally, we may provide you with an interim statement to maintain compliance with RESPA.

Please click here to download a guide on understanding your escrow statement.

After closing your loan, Guardian will generally prepare a statement after the most recent taxes have been paid on your account. Once your account is established, we will generally run your analysis and prepare your statement at the same time each year. Your statement will be mailed to you, and we suggest looking for this document to understand any important changes to your payment annually if applicable.

The most common answer is because of an adjustment in your taxes or insurance bills from the prior year. While Guardian works to estimate your annual taxes and insurance to the best of our abilities, it is ultimately your city, county or insurance company who determines tax and insurance payment amounts. When Guardian then completes your annual analysis, if these amounts increased, we unfortunately must adjust your escrow payment amount to ensure enough funds to appropriately pay on your behalf.

Yes, this is possible. Your payment may still go up if your taxes or insurance increase, even if you decide to pay the entire shortage or receive a surplus. The monthly payment is determined by dividing the projected disbursements for the upcoming year by 12 while the shortage/surplus is based on the subtracting the projected minimum balance from the required minimum balance. On your annual escrow statement, you’ll see a month-by-month projection of your upcoming escrow contributions. You’ll also see the upcoming disbursements we expect to make on your behalf.

You can absolutely choose to pay your shortage in full. You are able to find this shortage amount on the annual escrow statement we send to you. There are a few options to make this payment:

• Mail a check for the full amount to Guardian at:

GUARDIAN SAVINGS BANK
2774 BLUE ROCK RD
CINCINNATI, OH 45239
Attn: Escrow Dept – Escrow Only Payment

Please include with your check a statement you would like funds deposited directly to escrow only.

• Visit one of our local branches and ask to make a direct payment to your escrow account.

Click here to find the nearest Guardian Savings Bank branch.

Please note that payments directly to escrow cannot be made via our online bill payment options.

Funds in escrow are used to pay bills such as:

• Property taxes (both city and county)
• Homeowner’s Insurance
• Mortgage Insurance
• Flood Insurance

Your escrow payment is included within your monthly mortgage payment. To ensure prompt payment, simply follow the information provided within your coupon book or monthly statement.

Of course! Understand however, making payments directly to your escrow account does not negate or take the place of making your regular monthly mortgage payments. To make additional payments to escrow:

• Mail a check to Guardian at:

GUARDIAN SAVINGS BANK
2774 BLUE ROCK RD
CINCINNATI, OH 45239
Attn: Escrow Dept – Escrow Only Payment

Please include with your check a statement you would like funds deposited directly to escrow only.

• Visit one of our local branches and ask to make a direct payment to your escrow account.

Click here to find the nearest Guardian Savings Bank branch.

Mortgage insurance provides financial flexibility and can allow borrowers without a substantial down payment to purchase a home. It protects your lender in case you default on your mortgage loan. There are two common types of mortgage insurance:

• Private Mortgage Insurance (PMI): PMI is the most common form of mortgage insurance, especially on Freddie Mac and Fannie Mae Loans.
• Mortgage Insurance Premium (MIP): Mortgage Insurance Premiums are common on FHA loans.

To determine if you can cancel your PMI, review the requirements to cancel your mortgage insurance outlined on your Mortgage Insurance Disclosure received with your loan closing documents, if available.

If your loan is secured by a single family, owner occupied residence you can typically request PMI cancellation if:

• Your “original value” LTV (loan-to value) ratio is 80% or less—a calculation made by dividing your loan’s unpaid principal balance by your original purchase price or your original appraised value, whichever is less.
• You have a good payment history and have made at minimum 24 monthly payments. (No payments past 60 days late in 24 months and no payments past 30 days late in 12 months.)
• PMI removal can be requested based on “current value” LTV, but there are specific requirements including age of loan, investor, etc.

For automatic termination on a fixed rate mortgage loan, if the residence is a single-family primary home or second home, your mortgage insurance will be cancelled automatically in one of the following scenarios, whichever happens first, provided that your loan is current:

• The LTV on your property reaches 78%, based on the original amortization schedule (and you didn’t make extra payments to get it there).
• You reach the midpoint of your mortgage term (year 15 on a 30-year mortgage, for example).

Note: If you have a multi-unit primary residence or investment property, these rules differ slightly. With Fannie Mae, mortgage insurance goes away on its own halfway through the loan term. By contrast, Freddie Mac does not auto-cancel mortgage insurance.

These guidelines will not apply to every loan. To determine if you are eligible to cancel your mortgage insurance, submit a written request with your full name and full account number via fax to (513) 923-3070 or by emailing [email protected]. You can also mail the request to:

Guardian Savings Bank
2774 Blue Rock Rd
Cincinnati, OH 45239
Attn: Escrow Dept – PMI Cancel

For FHA loans with MIP, please refer to the documents that were provided at your loan closing.

Your loan documents require that you maintain the appropriate insurance coverage throughout the life of your loan. The type of coverage required may depend on the location of the property.  For example, properties in flood zones must have flood insurance.

If your required insurance coverage lapses or you do not have enough coverage, Guardian may purchase insurance on your behalf.  Your monthly mortgage payment will be adjusted to reflect the additional charge to your escrow account. Additionally, your account may be considered in default for failure to maintain insurance as required by the terms of your note and mortgage with Guardian and subject to increases to your interest rate and/or other default actions as defined by the terms of your agreement. Our purchase of insurance on your behalf does not negate this default.

Lender placed mortgage insurance premiums are generally more costly than purchasing your own insurance. They also only cover the outstanding balance on your loan and not your belongings or total property. It is important to keep us up to date on your mortgage insurance. Changes to insurance carriers, annual declaration pages, and any other insurance related questions can be sent to [email protected] or by calling (513) 842-0971.

A mortgagee clause states for insurance purposes who the mortgage holder of your property is. For Guardian Savings Bank, it should be listed as follows on all policies:

GUARDIAN SAVINGS BANK, ISAOA
2774 BLUE ROCK RD
CINCINNATI, OH 45239

Copies of policy information can be sent via fax to (513) 923-3070, e-mail at [email protected] or mail to:

Guardian Savings Bank
2774 Blue Rock Rd
Cincinnati, OH 45239
Attn: Escrow Insurance

Please ensure all policies contain the appropriate mortgagee clause to avoid rejection by Guardian. Policies should list Guardian as:

GUARDIAN SAVINGS BANK, ISAOA
2774 BLUE ROCK RD
CINCINNATI, OH 45239

Please give your new insurance company our mortgagee clause:

GUARDIAN SAVINGS BANK, ISAOA
2774 BLUE ROCK RD
CINCINNATI, OH 45239

Your agent will typically send the new policy in the mail, but to expedite the process you can also email us at [email protected]. Once we receive the new policy, we will send payment. You must contact your previous insurance company and cancel the policy. If we have already sent payment on your previous policy, you will receive a refund directly from the insurance company. We advise that
you deposit those funds back in to your escrow account so the change reflects accurately on your escrow analysis. Not doing so may cause an additional shortage to your escrow account, increasing your payment at your next annual escrow review.

Typically, this is because you had a much larger shortage and much more drastic change in expenses on your prior year analysis. Because you have paid this shortage over the last year, that portion of your payment for the shortage is complete. You still show a shortage on your current analysis, as your escrowed items increased from the previous year’s projections, just not as much as they did on your last analysis.

Unfortunately your monthly escrow payment cannot be lower than your “required escrow payment”. To calculate your required escrow payment, Guardian takes the total amount for all your escrowed items and divides that number by 12. If you deposit any amount past the shortage, your payment will be adjusted to your required escrow payment and anything additional would show as an overage in your escrow account and would be used to help prevent or lower a potential shortage.

If the check is for exterior work on your property (i.e. Roof, Siding, etc.), you may proceed to your nearest Guardian Savings Bank branch location for assistance. If your insurance check is for exterior and/or interior damage, please contact our Ft. Wright branch at (859) 341-0700 and ask to speak with someone regarding your insurance check.

An escrow account is an account established by a bank for the purpose of managing specific property-related payments. Homeowners make monthly payments into the account to cover portions of their property taxes and insurance. When these payments become due, typically six months to a year after the purchase of the home, the funds are automatically withdrawn from the account. The bank then uses these funds to pay the taxes and insurance obligations on behalf of the homeowner.

If a borrower puts more than 20% down on the property, they can choose to escrow taxes, insurance, both, or neither. An escrow account allows the homeowner to pay for taxes and insurance in monthly installments as part of their regular mortgage payment. This approach helps stabilize monthly expenses, ensuring that when taxes or insurance payments are due, the funds are already available in the bank’s escrow account rather than requiring the homeowner to pay out of pocket at that time.

Funding an escrow account is a significant home-buying cost that often surprises buyers. Key details regarding this expense include:

Escrow Components: Most banks require buyers to prepay for several months of property taxes and insurance.

Insurance Premium: In addition to monthly escrow collections, buyers typically must pay a full 12-month insurance premium upfront.

These funds are collected to ensure the home remains properly insured and that tax obligations are met. Escrow funding is a separate requirement from the standard down payment and typical loan costs.

This is an upfront payment made by a buyer to demonstrate to the seller that they are serious and genuinely interested in proceeding with the purchase of the home. This money is ultimately credited toward the buyer’s total closing costs when the loan closes. For example, if a buyer has a total of $25,000 in costs to close, and they have already paid $5,000 in earnest money, they would only need to pay the remaining $20,000 at the end.

Once a deposit is made, a realtor will deliver it to a title company. The title company holds these funds until the loan is prepared for closing. When the transaction closes, the deposit is credited toward the buyer’s total out-of-pocket expenses. If a buyer does not proceed with the home purchase—for example, due to a failed inspection or the inability to secure financing—it may be possible to recover the earnest money deposit. Buyers should consult with their realtor regarding the status and recovery of their deposit.

Seller concessions are credits provided by the seller to the buyer. These concessions may be negotiated for various reasons, such as when a borrower requires additional funds or when repairs are needed on the property.

Homeowners Association (HOA) Dues: It is critical to investigate the specific HOA fees associated with a property. These dues can vary significantly, ranging anywhere from $100 to $500 per month.

Impact on Debt-to-Income Ratio: Because these costs are recurring, they must be factored into your debt-to-income ratio.

Monthly Budgeting: HOA dues can make your total monthly housing payment substantially more expensive.

Comparison to Single-Family Homes: When deciding between a condo and a single-family home, always verify the HOA dues to ensure they align with your financial goals.

In current competitive markets, submitting a non-contingent offer—buying a new home without first selling an existing one—is nearly essential. The primary difficulties in making such an offer involve securing a down payment and managing the debt of two properties simultaneously along with other existing debts. Financial products, such as blanket loans, are available to help buyers navigate these challenges. Buyers are encouraged to seek professional advice to explore various alternatives for purchasing a new home without the prior sale of their current residence.

Pros:

• Higher Acceptance Rate: Buyers have a significantly better chance of getting their offer accepted by a seller.
• Wider Selection: It allows buyers to pursue the house they truly want.
• Market Advantage: Waiting to sell first limits a buyer’s options to only what is available in the “pool” at that specific moment.
• Perceived Strength: To a seller, a non-contingent offer looks much stronger because it signals the buyer is prepared and the deal does not depend on another sale.

Cons:

• You may have two properties and or two loans to contend with if your current home does not sell before closing on the new home.
• You may not qualify for a new loan if the current loan is not paid off. 

There are two methods for purchasing a new home without needing a home sale contingency:

• Blanket Loan: This strategy involves combining the equity from your current house to assist in the purchase of a second home.
• Low Down Payment Option: This requires qualifying for two concurrent mortgages, meaning you must be able to carry both payments simultaneously. A recast feature is available, allowing you to roll the equity from the first house into the second for a fee once the first house is sold. This effectively adjusts the loan as if you had provided a larger down payment at the start.

Obtaining a strong, non-contingent pre-approval is essential to getting a contract accepted. Demonstrating cash reserves is beneficial because it often signals that a buyer is capable of making a larger down payment. When a larger down payment is reflected on the pre-approval letter, it signals to the seller that the buyer is financially strong, which helps the seller feel more comfortable accepting the offer.

Closing costs and mortgage rates can vary between lenders, and it is important to understand how they interact. Consider the following when evaluating loan options:

• Compare both costs and rates: It is essential to look at both the interest rate and the associated closing costs together.
• Beware of hidden trade-offs: Some lenders may advertise very low interest rates, but then offset them by charging thousands of dollars in high closing costs.
• Perform a direct comparison: When shopping for a loan, always compare both the interest rates and the closing costs across different lenders to determine the best overall value.

Buying a home is one of the most significant decisions a person will make in their lifetime. We understand the client’s needs and figure out what a client truly wants when looking for a property. This allows for better advice to be given to help the client reach the next step in the home-buying process.

The home buying process is designed to be simple and is broken into the following steps:

Initial Consultation and Pre-Qualification: The process begins by meeting to review personal finances, including a credit report and income. This step determines the appropriate budget for a home. Guardian Savings Bank provides a pre-qualification and a list of necessary documents to gather. Having documentation ready helps ensure the loan process is faster and smoother.

Offer and Loan Processing: Once pre-qualification, an offer is placed on a home, and the required documentation is submitted. The process includes setting up insurance and conducting an appraisal on the property. If everything aligns correctly, the loan is closed within 30 days.

• First-time home buyers: We try to ensure these clients clearly understand the home-buying process and have identified exactly what they are looking for so they can receive the best possible guidance.
• Refinancing clients: These individuals have likely navigated the mortgage process multiple times before; consequently, the focus of the advice shifts toward the financial aspects and the specific numbers that make sense for their situation.

A primary responsibility for a loan adviser is ensuring communication methods align with what the client wants. Advisers should adapt their communication style to meet the specific needs of each individual client. While some clients desire frequent updates, others only require confirmation that the process is moving forward smoothly. Identifying and adhering to a client’s preferred communication style leads to the most effective overall interaction.

To ensure a smooth lending process from pre-qualification to closing, buyers should:

• Continue paying all current credit accounts on time, ideally early or on the due date.
• Monitor emails frequently to maintain clear communication with the lending team and ensure the loan closes on time.
• Be prepared for the potential need to re-verify assets, income, or employment throughout the mortgage process.
• If a borrower has questions regarding appropriate actions during the mortgage loan process, they should contact their loan officer for guidance.

We promise clear and consistent communication, ensuring the realtor, the buyer, and the listing agent remain informed throughout the entire loan process. We offer rapid turnaround times for pre-qualification, often completing them on the same day or even within the same hour. We emphasize a proactive approach to challenges, focusing on finding creative financing solutions to ensure deals reach the closing table even if issues arise. The primary objective is to create a smooth, stress-free experience for clients, leading to a successful and happy transaction.

Numerous parties are involved, including inspectors, appraisers, title companies, escrow companies, and both listing and buying agents, so the process requires extensive paperwork that must be collected, signed, and repeatedly verified. These complex requirements must be coordinated within a standard 30-day goal. 

About two-thirds of the way through, after an appraisal is submitted, underwriters often require updated documents such as recent bank statements or pay stubs to ensure a buyer’s financial situation remains consistent from the start of the process. 

While being asked for updated information can be frustrating for anxious buyers who believe they have already provided everything, these requests are a positive sign that they are “rounding third” and heading home. Providing these final requested documents allows the team to cross all remaining items off their list, move to a “clear to close” status, and finalize the closing date.

First-time home buyers may be eligible for programs that require as little as 0% to 5% down. There are numerous different programs available to potential buyers. It is essential to consult with a loan officer to understand specific qualifications. A loan officer helps determine which down payment amount and program make the most sense for an individual’s unique situation.

1. Open a Savings Account: Prospective buyers are advised to open a savings account specifically at Guardian Savings Bank.
2. Build a Down Payment: The account should be used to accumulate funds specifically for a home down payment.
3. Earn Interest: Guardian Savings Bank assists the process by paying an annual percentage yield on the account balance.
4. Increase Available Funds: This earned interest helps the buyer grow their total savings, providing more money to apply toward the down payment.
5. Prioritize a Home Inspection: The primary recommendation is to ensure a professional inspection is conducted before finalizing the purchase of a home

The process from pre-qualification to closing involves the following steps and generally takes 30-45 days:

1.  Initial Consultation: Speak with a loan officer to determine the amount for which you can be approved.
2.  Pre-qualification: This initial step can take as little as 15 minutes. During this time, you will complete an application, have your credit report pulled, and verify that your debt-to-income ratios align with your target purchase price.
3. Offer Submission: Once qualified, you receive a letter to provide to your realtor. This letter is typically required to submit an offer on a house.
4. House Hunting and Offer: Have a realtor show you homes, place an offer on a property, and secure a contract.
5. Documentation: Provide all necessary income, asset, and credit documentation to the loan officer.
6. Loan Processing: After your offer is accepted, you return to your loan officer with the contract. You will review loan options and lock in a loan. The loan officer will collect necessary documentation and the file will go through underwriting to be cleared before you reach the closing table to sign and become a homeowner. The loan officer coordinates with processors, underwriters, closers, and the title company to ensure the loan is closed within 30 days.