Mortgage Questions - To Buy Or Not To Buy

How do I decide if I can afford to buy a home instead of renting?

capfed.com offers an online calculator that will help you determine if renting or buying is a better option for you.


What is the difference between principal balance and escrow balance?

"Principal Balance" is the amount you still owe on the loan. Your actual payoff amount may differ from the balance shown because interest is accrued daily to your account.

"Escrow Balance" is the amount currently available to pay taxes and insurance.

If you need the payoff amount of your loan, please call Capitol Federal at 1-800-222-7312 during regular business hours.


How can I find out how much my payment will be?

There is a calculator available on our website that will give you an idea of what your monthly payment would be if you know the loan amount.


What is the maximum percentage of my home's value that I can borrow? 

For mortgage loans, the maximum percentage of your home's value depends on the purpose of your loan, how you will use the property and the loan type you choose. We can determine the loan amount we can offer once you've completed our online application.

For a home equity loan, you may borrow up to 95 percent of your home's value, less the amount of your first mortgage. Certain restrictions apply.


Can I apply for a mortgage loan before I find a property to purchase? 

Yes, you can. In fact, we recommend that is when you do it! After being approved for a Capitol Federal mortgage loan, you'll receive a preapproval letter that will let real estate brokers and home sellers know that you are a qualified buyer. That can be the extra weight that makes the difference when you put in an offer on your dream home.

Once you've found the right home, call your loan officer to complete the processing of your application.


What's the difference between a home equity loan and a refinance? 

A home equity loan is generally a second mortgage against your home, a loan that you take out using your home as collateral without paying off your first mortgage. 

A refinance typically allows you to pay off your existing mortgage and replace it with a new first mortgage.