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Mortage Information
Insurance Information
Mortgage Calculator
When should I start shopping for a mortgage and how do I know what I can afford?
The best time to look for a mortgage is before you look for a house. This way you'll know exactly the amount of money you can borrow. You can use the calculators on this site to help you determine these numbers as well as your estimated monthly payments. Get approved for a mortgage before shopping for a home and you'll maximize your negotiating power. It's free and will take only a matter of minutes to get a decision, and there's no obligation until you want to reserve your funds.
How much down payment will I need?
The minimum down payment required depends on the mortgage program you select. Usually at least 3% is required. If you put down less than 20% on your rate may be subject to our Low Down Payment Rate Adjustment.
If you are concerned about having enough money to purchase a home you may want to consider our options for rolling your closing costs into either your interest rate or your loan amount. You will still need to come up with money for your down payment but this will help reduce the amount of additional money that you will need to bring to close. Why is the Annual Percentage Rate (APR) different from the interest rate?
The annual percentage rate is intended to reflect the total cost of your mortgage loan. To calculate the APR, lenders consider the interest rate on your mortgage loan, the term of the loan, and other loan fees such as closing costs, points, etc. Your monthly payment is calculated based on the mortgage note rate, not the APR. The APR will be higher than your interest rate, especially if you are paying any points.
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To be used as a valid evaluation tool the APR must be loan specific. The actual APR will show up on the Truth-in-Lending statement that you will see once you have submitted your information and reserved your funds. When comparing loan programs based on APR make sure you ask each lender their criteria for determining the APR.
Insurance
Home Warranty - A Home Warranty is an option for buyers (and sometimes sellers) when buying a home. The cost of the warranty can be borne by either the buyer or the seller, depending upon how it is negotiated in the contract. A warranty usually costs between $260 and $400 depending upon the deductible and coverage.
Homeowner's Insurance Policy - This is usually required in order to obtain a loan. Most insurance companies give a reduced rate for bundling homeowner's insurance with automobile insurance, so try contacting your automobile insurance carrier to inquire about homeowners insurance rates. Oftentimes the first year of this policy must be paid in one lump sum at closing.
Title Insurance Policy - A title insurance policy is purchased to ensure the title on the property is free from any liens. In Davidson County, this cost is traditionally endured by the seller (except in New Construction, where it is typically paid by the buyer). To calculate this task, take 0.1% of the purchase price and multiply it times $5.00. Then add $100 to the final figure. For instance, if a house cost $200,000, you would multiply $200,000 x 0.1 = 200 x $5 = $1000 + $100 = $1100. A buyer also purchases a Title Insurance Policy, but since it can be issued simultaneously along with the seller's policy, they only pay $35 (again, except in New Construction where the costs are reversed).
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