Loan Services: Mortgage Loans
When you are going through the home financing process many questions arise. This section is designed to help answer some of the questions you may have about mortgage loans.
The answers to your questions are separted into sections by the type of loan you are considering. Please click on a section below to find the answers to your questions:
Buy a Home
Refinancing your Home
Use your Equity
Have a question that was not answered? Contact us with any questions you may have.
How much will I pay in closing costs?
Closing costs include lender fees, third-party fees, and pre-paid items (interest, taxes and hazard insurance). The lender should provide you with an estimate of the closing costs soon after your application has been received. If you have a specific dollar amount in mind, you may request a good faith estimate from the lender that should include an estimate of the closing costs.
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How much can I afford?
To discover how much you can afford to spend on your new house, you will need to see how much you can afford to pay each month toward a mortgage loan.
In general, lenders prefer that your monthly mortgage payment is about 30% or less of your gross monthly income. Lenders also look at your back end ratio (debt in comparison to income).
Calculator:How
much house can I afford?
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What types of mortgages are available?
Traditional Fixed Rate Mortgages
With a fixed rate mortgage, the interest rate is set for the full term of the loan. The monthly payment for principal and interest stays the same for the life of the loan.
Adjustable Rate Mortgages
An adjustable rate mortgage usually starts with a lower initial interest rate than traditional fixed rate loans.
After an initial fixed payment period (usually 3, 7 or 10 years), the interest rate is subject to review and can move up or down based on the index and margin. Your monthly payment changes as the interest rate changes.
Balloon Mortgages
A balloon mortgage starts out the same as a 30-year fixed rate mortgages, but after the initial term, the balance of the loan must be repaid. The loan may be refinanced or simply paid off at the end of the initial term.
FHA Insured Fixed Rate Loans
- FHA-insured mortgages are assumable, have low Mortgage Insurance can be financed.
- Approximately 97% financing with Seller contributions up to 6% of the sales price to help with closing costs and prepaid items, without affecting the down payment requirement
- Gift funds from a relative or employer may be used for a down payment and cost to close.
- No cash reserves are required after closing.
- Child-care costs are not considered in the debt ratio.
VA Guaranteed Fixed Rate Loans
- VA-insured mortgages are assumable
- No down payment requirement/100% financing
- Gift funds from a relative or employer may be used for a down payment and cost to close.
- Seller can pay all closing costs, prepaids and discount points up to 4% of the Sales Price.
- No cash reserves are required after closing.
To download a printable, conventional mortgage loan application, click here.
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What are the tax advantages of owning a home?
Income tax reductions. Interest paid on a mortgage loan and property taxes can often be deducted from your taxable income. With the tax break, it is sometimes less expensive to own a home than to rent. Advice
Equity loans. The longer you pay on your mortgage, the more equity that builds up in your home. You may borrow money against this equity, and the interest on a loan against equity in a home can often be tax deductible. Please consult a tax professional for more information.
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Should I prequalify?
Prequalifying lets you know how much you can afford to pay for a house, and it demonstrates to the seller that you are serious about buying. Prequalifying also makes the final application process move quicker and smoother.
Some lenders may charge fees for prequalifying. Simmons First Collects any fees at the time of application.
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How can I lock-in my interest rate?
To help lock-in the interest rate you want, fill out a mortgage loan application in advance.
To download a printable, conventional mortgage loan application, click here.
Once you have completed a mortgage loan application, take it to one of our convenient locations near you. The interest rate you are quoted on the day your mortgage loan application is accepted is the rate you can lock-in to, if you choose to do so. You are only able to lock-in your interest rate for a certain amount of time called the lock period. One of our friendly mortgage loan representatives will gladly go over your loan application with you to make sure you have considered all of your financing possibilities and to discuss the lock-in rate and period.
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Can I view my mortgage information online?
Mortgage information is available for viewing online. You may also make payments to your mortgage online from any Simmons First checking or savings account.
If you are currently enrolled in Simmons First Bank Anywhere online service, all you need to do is have your Simmons First mortgage loan added to your existing Bank Anywhere online account by clicking here.
If you are not enrolled in Simmons First Bank Anywhere online service and you wish to view your Simmons First mortgage loan online, you will need to enroll in the Bank Anywhere online service. Enrolling in Simmons First Bank Anywhere is fast and easy. Click here to learn more about Simmons First Bank Anywhere and the enrollment process. Fees may apply.
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Have a question that was not answered? Contact us with any questions you may have.
Should I refinance my mortgage?
There are four benefits of refinancing:
- Lower your interest rate.
- Reduce your monthly payments.
- Pay off your Current mortgage quicker.
- Use the equity in your house.
Many factors come into play to determine if refinancing is right for you. You may use the calculator below to help determine if now is a good time to refinance.
Calculator: Should I refinance my home mortgage?
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What will I pay in closing costs?
Closing costs include lender fees, third-party fees, and pre-paid items (interest, taxes and hazard insurance). The lender should provide you with an estimate of the closing costs soon after your application has been received. If you have a specific dollar amount in mind to borrow, you may request a good faith estimate from the lender that should include an estimate of the closing costs.
Any prepayment penalty on a loan being refinanced will increase the amount required to close. If there is enough equity in the home, the estimated closing costs will change if you change the product type or loan amount. If this should occur, be sure to ask how the changes will impact your closing costs.
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Do I need a certain amount of equity in my home to refinance?
Most lenders require you have between 5 - 10% of equity in your home before attempting to refinance.
Simmons First requires that the loan to value (LTV) ratio not exceed 95%. This means that the amount of the new loan must be equal to or less than 95% of the current appraised value.
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How will a prepayemnt penalty affect my refinance?
When you look at refinancing, you will need to consider whether the money you save will outweigh the fees you will pay to refinance. If a prepayment penalty is included in your current mortgage, you will want to take the fee associated with prepayment into consideration in your refinancing decision. Before you refinance, check your current mortgage loan papers for any prepayment penalties.
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Should I prequalify before refinancing?
Prequalifying is a good first step when refinancing. By prequalifying, you will know the amount you can refinance and if refinancing your home is the right choice for you. Prequalifiying also helps the refinancing process go faster and smoother.
Some lenders may charge fees for prequalifying. The fees cover the cost of credit reports and underwriting involved with prequalification. The fees are collected at the time of application. Contact your lender to find out what fees apply to you.
To download a printable, conventional mortgage loan application, click here.
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How can I lock-in my interest rate?
Prequalifying lets you know how much you can afford to refinance, and it makes the final application process move quicker and smoother. When you prequalify, you can request to lock-in the interest rate quoted to you upon approval. A lock period is usually associated with locking in a rate. The lock period specifies how long the rate is locked in.
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Is an appraisal necessary when I refinance?
Yes. An appraisal is used to help determine how much equity you have in your home and the amount for which you can refinance your home Top
How does the closing work in refinancing a mortgage?
Closing on a refinanced mortgage is completed the same as closing on a first mortgage. On the closing date, you will read and sign all of the settlement statement and pay the closing costs.
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Can I view my mortgage information online?
Mortgage information is available for viewing online. You may also make payments to your mortgage online from any Simmons First checking or savings account.
If you are currently enrolled in Simmons First Bank Anywhere online service, all you need to do is have your Simmons First mortgage loan added to your existing Bank Anywhere online account by clicking here.
If you are not enrolled in Simmons First Bank Anywhere online service and you wish to view your Simmons First mortgage loan online, you will need to enroll in the Bank Anywhere online service. Enrolling in Simmons First Bank Anywhere is fast and easy. Click here to learn more about Simmons First Bank Anywhere and the enrollment process. Fees may apply.
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Have a question that was not answered? Contact us with any questions you may have.
What can I use my home equity for?
The lender will most likely ask you where the money from your home equity loan or line of credit will go, but you are able to spend it on almost anything you need or want.
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How much is my home worth?
An appraisal will be completed to determine the actual value of your home, but when you apply, you may estimate your home’s value to the best of your knowledge.
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How are home equity lines of credit different from home equity loans?
Compare your choices
|
Home Equity Loan |
Home Equity Line of Credit |
| Interest |
Tax deductible in most cases |
Tax deductible in most cases |
| Interest rates |
Fixed |
Variable |
| Access to funds |
Funds disbursed in a single
check
Electronic transfer of funds into
the account of your choice. |
Equity Credit Line
ATMS
Checking accounts |
| Payment options |
Fixed monthly payments
Direct Payments from your checking account |
Flexible interest only or principal plus
interest payment options available
Direct payments from your checking
account |
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Can I get a home equity loan or line of credit on a rental property?
Some lenders may offer home equity loans or lines of credit with the equity built up in rental property; however, Simmons First does not allow for you to use equity in rental properties except when specials are running.
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Will interest on my home equity loan or line of credit be tax deductible?
This question is best answered by your tax advisor because he/she knows your specific tax situation. Currently, interest paid on a home equity loan, where the security is equity in a primary residence, is tax deductible. Advice
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Is an appraisal necessary to obtain a home equity loan or line of credit?
Yes. An appraisal is used to help determine the equity you have in your home.
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Can I access my home equity loan or line of credit information online?
Home equity loan and line of credit information is available for viewing online. You may make payments to your home equity loan or line of credit online from any Simmons First checking or savings account.
If you are currently enrolled in Simmons First Bank Anywhere online service, all you need to do is have your Simmons First home equity loan or line of credit added to your existing Bank Anywhere online account by clicking here.
If you are not enrolled in Simmons First Bank Anywhere online service and you wish to view your Simmons First home equity loan or line of credit online, you will need to enroll in the Bank Anywhere online service. Enrolling in Simmons First Bank Anywhere is fast and easy. Click here to learn more about Simmons First Bank Anywhere and the enrollment process. Fees may apply.
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