There are more than 20 mortgage products available through TD Bank, between jumbo and conventional loans. So customers will have ample loan options, featuring fixed-rate, adjustable-rate, and FHA mortgages.
TD Bank’s physical branches in the U.S. are located solely around the East Coast, limiting its mortgage reach for many customers. The specific states it originates loans in are Connecticut, Delaware, Florida, Massachusetts, Maryland, Maine, North Carolina, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, South Carolina, Virginia and Vermont, along with Washington, D.C.
|30-Year Fixed-Rate||4.687%||-||Compare Rates|
|15-Year Fixed-Rate||4.218%||-||Compare Rates|
|5/1 ARM||3.843%||-||Compare Rates|
These TD Bank rates assume a down payment of 20% and a loan size of $175,000.
Overview of TD Bank Mortgages
The most common type of mortgage, not only at TD Bank but anywhere, is a fixed-rate loan. TD offers at least four different styles of these loans, including conventional, jumbo, HomeReady and Right Step. The majority of customers will likely end up with a conventional fixed rate mortgage, but if you need a loan larger than $453,100, you’ll have to get a jumbo loan.
Jumbo and conventional loans are also available as adjustable-rate mortgages (ARMs). These types of loans hold a base interest rate for an initial time frame, as well as a subsequent rate period that carries an index-based variable APR for the rest of the loan’s term. For example, TD Bank’s 5/1 ARM has a five-year initial rate period, with a variable interest rate that changes every year, hence the “1.” The bank also features some more unique ARMs, such as 15/1, 5/5 and 1/1 options.
The aforementioned HomeReady and Right Step mortgages both serve the same purpose in that they each are for those that don’t have much to put towards a down payment, or more specifically, as little as 3% of the new home’s value. TD Bank will pay for your mortgage insurance if you choose a Right Step mortgage, while those in the HomeReady program are eligible for cheaper insurance premiums.
What Your Monthly Mortgage Payments Could Be With TD Bank
In order to give a well-rounded picture of the monthly payments that you can expect on a TD Bank mortgage, we’ve come up with projections for some of the most popular options at the bank. While interest rates and APRs get all the attention, many other factors dictate your payments.
First and foremost, the size of your loan is dependent on how much you can afford to pay as your down payment in relation to the overall value of your home. In other words, the balance of whatever’s left over after your initial payment is your mortgage.
The fixed and adjustable-rate conventional loans listed in this table assume your new home is worth $218,750 and is split between a $43,750 down payment and $175,000 loan. However, the jumbo loan is based on an $125,000 down payment, $500,000 mortgage and subsequent home value of $625,000.
|Mortgage||Interest Rate||Loan Size||Your Payments|
|30-Year Fixed||4.687%||$175,000||$906/month for 30 years|
|15-Year Fixed||4.218%||$175,000||$1,314/month for 15 years|
|5/1 ARM||3.843%||$175,000||$820/month for 5 years; $1,276/month for 25 years|
How TD Bank Compares to Other Lenders
TD Bank’s mortgage lending offers, interest rates and APRs stack up well against most of its “big bank” competition, such as Bank of America and Wells Fargo. Rocket Mortgage, on the other hand, is much less traditional and yet has very similar rates to TD.
|Mortgage||TD Bank||Bank of America||Wells Fargo||Rocket Mortgage|
The mortgage products you’ll find at TD Bank are extremely varied, so you should be taken care of regardless of the style of loan you’re after. While the most popular mortgage options are all present at Wells Fargo, BoA and Rocket Mortgage, TD does have a few more obscure and proprietary choices than most.
Refinancing Rates With TD Bank
Just about every loan you can get as a regular mortgage is also available as a refinance loan with TD Bank. They can be used for a number of purposes, but are most importantly able to help customers lessen the financial stress of their current loan. This will usually show itself in the form of a shorter overall term length and/or cheaper monthly payments. The costs of a normal mortgage also acompany refinancing loans, so make sure that even with these it makes sense to refinance.
It's impossible to predict what a lender's refinance rates will look like, though there are a number of factors that you can look at to figure out a rough estimate. Characteristics like your credit score, the size of the refinancing loan, the mortgage point total, loan-to-value (LTV) ratio, your current level of equity and whether the home is a primary residence or not will all factor into what you are offered.
Should You Get a Mortgage from TD Bank?
Between the very solid interest rates and APRs it offers and the multitude of loan options it includes in its portfolio, there’s a lot to love about TD Bank. This is especially true of its HomeReady and Right Step mortgages, which make it much easier for those that are typically on the outside of the lending sphere to get a loan.
Although TD Bank has well over 1,000 branches in the U.S., they’re all located on the East Coast, which will likely present a problem for potential customers in other parts of the country But if you’re located in that part of the nation, TD is a great lender to get a mortgage with, regardless of whether this is your first loan or you’ve been through the process before.
Tips to Successfully Manage a Mortgage
- Integrating your new mortgage loan into your life is easier said than done, but a financial advisor can help. To get paired with up to three financial advisors in your area who can help take care of your financial needs, use the SmartAsset matching tool. To initiate this matching process, answer a few simple questions that give a clearer picture as to what you’re looking for out of an advisor.
- Mortgages are typically the largest loans that most people will take out in their lifetime, so it's imperative that you handle them with exactly that level of significance. Always make sure that your mortgage and any other major loans are the first thing you pay off at the end of every month, as missing out on these payments can e extremely detrimental to your financial future.