Here you will find the answers to our frequently asked questions.

What is the difference between Fixed Rate Mortgages and Adjustable Rate Mortgages?
Fixed rate mortgages are loans in which the interest rate never changes during the life of the loan. As a result, the principal and interest payment also does not change during the life of the loan. The benefit of a fixed rate mortgage is you can lock your interest rate for as long as 30 years to protect yourself against rising interest rates.

Adjustable Rate Mortgages (ARM), also known as variable rate mortgages, are loans in which the interest rate will adjust up and down according to an index rate. Initial ARM rates are generally lower than fixed rates. There is a predefined cap that limits how high the interest rate can adjust. ARMs are beneficial for those who do not plan to stay in their homes for a long time, for those who do not qualify for higher fixed rates and for those who are comfortable with fluctuating payments.

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How do Adjustable Rate Mortgages work?
There are many types of Adjustable Rate Mortgages, but all have some common features. One common feature of Adjustable Rate Mortgages is an interest rate change that occurs after a stipulated number of payments have been made. The interest rate can increase or decrease depending on the market rate (index). Typically, the interest rate change is based on a predetermined index value and a margin. If a customer currently has an interest rate that is pending adjustment, the new rate would be calculated by adding the current index rate and a margin. For example, if the customer’s current rate was 6.000% with a 2.000% margin, the new rate would be determined by adding the current index rate (for example, 5.000%) to the margin. In this example, the new interest rate would be 7.000%. The maximum amount the interest rate can change during any adjustment period is usually fixed. This maximum adjustment is called the annual rate cap. Adjustable Rate Mortgages also have a lifetime rate cap, preventing the interest rate from exceeding a predetermined rate.

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What are escrow accounts and how much do I need in my escrow account?
Escrow accounts are savings accounts established for the customer by the bank for the purpose of paying taxes, insurance and other payments associated with the ownership of your home. The bank is responsible for the timely disbursement of escrow funds to pay the bills as they come due. The bank will collect funds for placement into your escrow account with periodic payment for principal and interest. An escrow account has sufficient funds when there is enough savings to pay all bills when they come due. It is common practice for the bank to require an escrow cushion or extra savings deposit totaling one-sixth of the total estimated annual payments. The cushion is kept in the escrow account by the bank to ensure that if the cost of any escrowed item were to increase in the future, there would be sufficient funds to pay all bills as they come due.

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How do I get get preapproved for a mortgage?
Preapproval is easy, convenient and, best of all, free.  Simply follow the Apply Now link on the navigational bar and choose the preapproval application that suites your needs. Just fill out the quick application online and submit. Normally, you should receive a decision within one to three business days.

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What items do I need to provide at time of application?
Providing all the required documentation found on our Application Checklist when you apply will save you time and expedite the loan process. In order to properly consider your mortgage application, we must be in receipt of the applicable documentation below within ten calendar days from the time of application. Failure to submit this information may cause you to lose your Rate Lock and require you to reapply for this mortgage.

Click here if your ready to apply.



Click here if your ready to apply.

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What is Private Mortgage Insurance (PMI)?
Private Mortgage Insurance (PMI) is insurance that protects a lender or investor against loss if a borrower stops making mortgage payments. It makes it possible for you to buy a house with less than a 20 percent down-payment, helping you buy a home sooner than you otherwise could.

Why is PMI needed?

    Studies show that homeowners with less than 20 percent invested in a home are more likely to default, making low down-payment mortgages more risky for lenders and investors. That’s why lenders and investors generally require mortgage insurance for loans with down payments of less than 20 percent.

How do I benefit from PMI?
    PMI makes it possible for you to buy a house with a low down-payment and get into a home years sooner than you would otherwise.

      1. If you’re a first-time buyer, PMI helps you get over the biggest hurdle to homeownership: coming up with the traditional 20 percent down-payment.

      2. If you’re a trade-up buyer, mortgage insurance allows you to consider a wider range of homes.

      3. Both first-time and trade-up buyers can benefit by putting less money down and keeping cash for other uses: making investments, paying off debt or paying for home improvements or emergencies.


How much will it cost?
    Premium prices vary. They are based on the size of the down payment, type of mortgage and amount of insurance coverage. Premiums typically are included into your monthly mortgage payment. You can pay the premium up front and finance it as part of your mortgage or pay on a monthly basis.

How do I qualify for an insured mortgage?
    The qualifying process for loans covered by mortgage insurance is similar to that for regular mortgage loans. Generally, you need to have enough income to cover the monthly mortgage payment and closing costs, and have a good credit background.

Can I buy PMI directly from an insurance company?

    No. The lender arranges for private mortgage insurance coverage on your loan. A range of PMI products, with a variety of payment options, is available to meet your needs. When you shop for a loan, ask lenders about your PMI options.

Can I cancel PMI?
    Yes. PMI usually can be canceled when the homeowner builds up enough equity in the home. Under federal law, PMI on most loans made on or after July 29, 1999, will end automatically once the mortgage is paid down to 78 percent of the original value of the house.

Do I get a refund when my insurance is canceled?
    It depends on the type of premium plan you have. Most borrowers opt for the pay-as-you-go plan. With this plan, you pay for PMI a month at a time. When insurance is cancelled, you stop paying premiums, but you don’t get a refund. With plans in which you pay your premium up front (at closing) or on an annual basis, you may get a refund. Refundable premium policies are more expensive. Consult your lender.

How is PMI different from other types of insurance associated with homeownership?


    PMI is not mortgage life insurance, which pays off a mortgage in the event of death. PMI is not disability insurance, which makes mortgage payments if you become disabled. PMI is not homeowners’ or hazard insurance, which protects you from loss from theft, fire or other disaster. PMI protects the lender and investor from loss, not the borrower.

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How can I obtain a copy of my credit report?
There are currently three major credit bureaus from which a creditor can access your credit information.

Institutions report credit information to these three credit bureaus on a monthly basis, providing updates on consumers who are current or delinquent on their payments (as well as other pertinent account information). Three major credit bureaus are reported to separately. Lenders such as NBT obtain a report from each of the three bureaus in order to gather a full history on each customer.

You can obtain a copy of your credit report by visiting the following website:

TrueCredit.com

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What are the system requirements to use this website?
To properly view this site, we recommend:

Internet Explorer version 6.0 or higher - Click here to upgrade Internet Explorer.

Netscape version 8.0 or higher - Click here to upgrade Netscape.

Adobe Acrobat Reader version 4.0 or higher - Click here for Adobe Reader.
     (Required to view PDF documents found throughout this website)

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Customer Service is available:
Monday - Friday 7:00AM - 7:00PM
Saturday 9:00AM - 12:00PM

Mortgage applications received after 3:00PM will be processed the next business day.

Questions or inquiries received during non-business hours will be processed on the next business day. Hours of operation exclude federal holidays.

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Is this site secure?
Yes, our online mortgage applications and all forms are 128-bit-encrypted (an industry standard). See our Security Statement for further details.

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I prefer to apply by telephone or by mail.
If you prefer to apply by telephone or by mail, simply print the following documents, gather the materials outlined in the checklist and either mail them to us or contact us toll-free to speak with a loan officer to assist you with the mortgage process.

1. Application
2. Checklist

1-800-NBT-BANK (1-800-628-2265)

Mail your application package to:

NBT Bank Residential Mortgage Department
52 S. Broad St.
Norwich, NY 13815

You may also contact us by clicking here.

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In Internet Explorer 5.0, I can see a "miniature site" in the background.
This identified problem is believed to occur only in Internet Explorer 5.0. After selecting a product from the Rates page by clicking the "Choose" button, the user is provided with the required disclosures and is automatically redirected to the secure portion of the website.

When using the default security settings on Internet Explorer 5.0, a security alert appears stating that the user will be redirected to a secure website. The user will see in the background a "miniature site" within the disclosure window.

Click here to view a sample of this known problem.

By clicking "OK" on the security alert, the page will refresh to the secure site and allow the user to continue.

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