Types of Home Loans

TD Bank home lending allows you to get personalized offers if you buy a home, refinance your existing mortgage, build a house, or renovate.

Mortgage down payment with TD Bank ranges from 3% to 20% on the loan balance. 

Your TD Bank loan officer will provide you with a closing costs estimate within three business days after you submit an application. You will get an estimation of the closing costs within 24 hours of the closure. The closing costs typically range from 2% to 6% of your loan amount. 

TD Bank offers a variety of mortgage options to suit the needs of different borrowers. Some of the most common mortgage options provided by TD Bank include:

1. Fixed-rate mortgages. This is a type of mortgage where the interest rate remains the same throughout the life of the loan, providing stability and predictability for borrowers. The terms are 15 and 30 years. The interest rate for a 30-year mortgage is 6%, while for a 15-year home loan, it is 5.12%.
2. Adjustable-rate mortgages (ARMs). This is a type of mortgage where the interest rate is initially lower than that of a fixed-rate mortgage but can fluctuate over time based on market conditions. An adjustable-rate mortgage has 3, 5, 7, and 10 years loan terms. The interest rate changes at set intervals depending on the SOFR index.
3. A construction mortgage covers the cost of building a house. It comes with adjustable and fixed rates and is available for one to four-unit primary residencies or one-unit vacation homes. A construction mortgage loan is for primary residents of 1 to 4 units, as well as for seconds and vacation homes. The down payment required is 20% of the sales price.
4. Jumbo mortgages. This is a type of mortgage that is designed for borrowers who need to borrow more than the conventional loan limits. The mortgage loan amounts exceed $726,200. It is available for both fixed rate and adjustable rate. A jumbo loan is a lending option designed to finance larger home purchase amounts
5. FHA loans. This is a type of mortgage that is insured by the Federal Housing Administration and requires a lower down payment than conventional loans. FHA mortgage has a 3.5% down payment and requires Mortgage Insurance Premium
6. VA loans. This is a type of mortgage that is guaranteed by the Department of Veterans Affairs and is designed for eligible veterans, active-duty service members, and their spouses. VA mortgage is for active-duty military, veterans, and their spouses. There is no down payment, and the loan term is 30 years

TD Bank also offers various refinancing options, including cash-out refinancing and streamline refinancing. It's important to note that the specific mortgage options and requirements may vary depending on the borrower's location, credit score, and other factors. It's always a good idea to speak with a TD Bank mortgage specialist to learn more about the mortgage options that are available to you.

How Do TD Bank Mortgage Work?

TD Bank mortgages work like other home loans in that the borrower borrows money from the bank to purchase or refinance a home, and then repays the loan over a set period of time, typically 15 or 30 years. Here's an overview of how the TD Bank mortgage process works:

1. Pre-qualification. The borrower fills out an application and provides information on their income, assets, and credit score. TD Bank then determines how much the borrower can afford to borrow.
2. Mortgage application. Once the borrower has found a home they want to buy or refinance, they can complete the full mortgage application. TD Bank will review the application and request additional documentation as needed.
3. Loan processing. TD Bank will process the loan application and verify the borrower's income, assets, and credit history.
4. Underwriting. TD Bank's underwriters will review the loan application and documentation to ensure that the borrower meets the bank's eligibility requirements.
5. Closing. If the borrower is approved for the loan, they will sign a contract and pay closing costs, including fees for the loan, title search, and appraisal. At this point, the borrower becomes responsible for repaying the loan according to the agreed-upon terms.

Throughout the process, TD Bank provides personalized customer service and mortgage specialists are available to answer questions and help the borrower through the application process. Once the loan is approved and closed, the borrower can make payments online, in person at a TD Bank branch, or by mail.

Pros and Cons

Pros

• Range of mortgage options. TD Bank offers a variety of mortgage options to suit the needs of different borrowers.
• Convenient online application process. Borrowers can apply for a TD Bank mortgage online, which can save time and make the process more convenient.
• Personalized customer service. TD Bank provides personalized customer service, with mortgage specialists available to answer questions and help borrowers through the application process.
• Competitive interest rates. TD Bank offers competitive interest rates on its mortgages, which can save borrowers money over the life of the loan.
• Potential discounts. TD Bank offers discounts on mortgage rates for customers who have other accounts or loans with the bank, which can lead to further savings.

Cons

• Limited availability. TD Bank mortgages are only available in certain states, so borrowers in other areas may need to consider other lenders.
• Strict eligibility requirements. TD Bank has strict eligibility requirements for its mortgages, including credit score, income, and debt-to-income ratio, which may make it difficult for some borrowers to qualify.
• Higher fees. TD Bank's mortgage fees may be higher than those of some other lenders, which can add to the cost of the loan.
• Limited branch locations. TD Bank has a limited number of branch locations in some areas, which may make it less convenient for borrowers to access in-person customer service.
• Potential for slow processing times. Some borrowers have reported that TD Bank's mortgage processing times can be slow, which can lead to delays in closing on the loan.

Terms, Fees and Conditions

TD Bank's mortgage terms, fees, and conditions can vary depending on the type of mortgage and the borrower's individual financial situation. Here are some general terms, fees, and conditions to consider:

Mortgage Terms

• Loan term. TD Bank offers mortgage terms of 10, 15, 20, 30 years, and also adjustable rate mortgages (ARMs).
• Down payment. Depending on the type of mortgage, TD Bank requires a minimum down payment of 3% to 20% of the home's purchase price.
• Mortgage rates. TD Bank offers both fixed-rate and adjustable-rate mortgages, with rates that are competitive with other lenders.
• Prepayment penalty. TD Bank does not charge prepayment penalties for paying off a mortgage early.

Mortgage Fees

• Application fee. TD Bank charges an application fee, which varies depending on the type of mortgage and the borrower's location.
• Origination fee. TD Bank charges an origination fee, which is typically 1% of the loan amount, but can vary based on the borrower's individual circumstances.
• Closing costs. TD Bank charges closing costs, including fees for the loan, title search, appraisal, and other services. These costs can vary depending on the type of mortgage and the borrower's location.

Mortgage Conditions

• Eligibility requirements. TD Bank has strict eligibility requirements for its mortgages, including credit score, income, and debt-to-income ratio. Applicants must also provide documentation such as proof of income and employment, tax returns, and bank statements.
• Additional accounts. TD Bank offers discounts on mortgage rates for customers who have other accounts or loans with the bank, such as a checking or savings account, which can lead to further savings.
• Property location. TD Bank mortgages are only available in certain states, so borrowers in other areas may need to consider other lenders.

It's important to keep in mind that these terms, fees, and conditions are subject to change and may vary based on the borrower's individual financial situation and the type of mortgage they choose. It's always a good idea to speak with a TD Bank mortgage specialist to get a detailed breakdown of the costs and requirements associated with a specific mortgage

Requirements

To get pre-qualified for the home loan, you will need to provide the loan officer with details on your basic income, asset, and debt information. The company will give you an estimation of the loan amount you qualify for. 

TD Bank requires the following documents:

• Debt, income, and asset information.
• A signed construction or purchase contract. The contract amount will impact your TD Bank mortgage.
• Financial statements and insurance
• Employment details and your employer contacts.

To get started with an application with TD Bank, you need to create an account. The pre-qualification decision is made within 24 hours.

If you are pre-qualified, within three days, TD Bank states the rate and payment you will get. If you find the mortgage loan suitable, you can proceed with the mortgage application and provide additional documents.

To finish the online application via the TD Bank website, click the "Apply Now" button under the mortgage you want or sign into your account and continue the application.

If the bank approves you for the mortgage, you can close it within 30 to 45 days. The money will be transferred to your bank account within five to seven business days, and you will receive a loan agreement by mail.

You can access your home equity line of credit or other TD Bank mortgage in the following ways:

• Online through the TD Bank checking or savings account using Online Banking or Mobile Banking.
• Through the Visa Equity Access Card.
• Through home equity checks to pay for improvements and major purchases. Checks take 10 to 12 business days to be delivered.
• In person at a local TD Bank branch. TD has almost 1,300 locations you can use to make your monthly payment.

Where Does TD Bank Operate?

TD Bank operates in various states and regions of the United States, primarily on the East Coast. Here's a breakdown of the states where TD Bank has a physical presence and operates:

• Maine;
• New Hampshire;
• Vermont;
• Massachusetts;
• Rhode Island;
• Connecticut;
• New York;
• New Jersey;
• Pennsylvania;
• Delaware;
• Maryland;
• Virginia;
• Washington, D.C.

In addition to these states, TD Bank also has a significant presence in Florida, with many branches and ATMs throughout the state. While TD Bank does not have a physical presence in other parts of the United States, the bank does offer online and mobile banking services to customers across the country.

It's worth noting that the availability of TD Bank products and services can vary by location, so it's always a good idea to check with the bank directly to confirm availability in a specific area.

How to Pay Off a Home Loan

TD Bank allows you to make monthly payments in the following ways:

• A mortgage loan officer can help you to schedule a recurring electronic payment.
• Online payment service allows you to make payments via your account. The payments made by 5:30 pm ET are posted the same day. If you make a payment after 5:30 pm ET or on a non-business day, the payment will be processed the next business day. Online payment service is currently unavailable for Riverside Bank and First Federal Bank of American First Bank accounts.
• Bank by Phone automated service is available 24/7 for requests. The payments are processed the same as with online payment options.
• In person at the local TD Bank store.
• Mail payments to the physical address in Leriston or Columbia.

In case you cannot make payments on time, the bank offers:

• Loan payment arrangement to maintain the monthly payments.
• Loan modification means there will be a change to the loan term.
• Short sale of a property.
• Deed in lieu of foreclosure - a transfer of the title. 

You can make any amount of lump sum payments without prepayment penalties. TD Bank allows you to pay off your loan faster.