Mortgage Questions
Find answers to top mortgage-related questions so you can get closer to securing your future home.
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Mortgage FAQ
A mortgage is an agreement between you (a borrower) and a bank or lender to buy or refinance a home without having all the cash up front. When you obtain a mortgage, you agree to:
The time it takes to pay off a mortgage will vary on the term of the loan. Many conventional mortgages offer 15 or 30-year repayment terms, but that duration can be shortened if you pay more than the minimum monthly payment each month.
Many lenders typically recommend that your housing costs make up no more than 30% of your annual pre-tax income. To estimate how much home you can afford consider the following details:
A mortgage is for those looking to buy a home, whereas a home equity line of credit (HELOC) is designed for those interested in tapping into their home's equity to pay for big expenses, such as home improvements, weddings and tuition. With both loan options, the home is pledged as collateral.
Seacoast Bank offers a variety of mortgage loan options including Fixed Rate Mortgages, Adjustable Rate Mortgages (ARM), Construction Loans, Jumbo Loans, Federal Housing Administration (FHA) Loans, Veteran's Administration (VA) Loans, USDA loans and Lot Loans.
Each loan option has its own distinct benefits and requirements, making it important to research the ones that align with your unique needs.
Thorough preparation is an important part of the mortgage loan process. In general, you'll want to complete the steps below when applying for a mortgage:
Though often used interchangeably, a distinct difference exists between being pre-qualified and pre-approved for a mortgage. Being pre-qualified is more high level and based on information from the buyer. On the other hand, pre-approval is more involved, as a mortgage application is needed. At this stage, the lender has reviewed the buyers' financial details and provided an idea of how much they can borrow.
The best mortgage options for you depends on your personal financial goals. Where you choose to live, how long you plan to stay in the home, and whether you've served in the US Military or not may impact which mortgage loan option you choose.
Private mortgage insurance (PMI) is a type of insurance that protects the lender if you default on your mortgage. It's typically required if you make a down payment of less than 20% on a conventional loan.
Yes, you can pay off your mortgage early! This is known as prepaying your mortgage. Benefits include saving on interest, financial freedom and building equity in your home. Potential drawbacks may include prepayment penalties if paid off in the first few years of the loan and reduced liquidity.
Mortgage rates may change frequently based on a variety of factors. Our mortgage rates page is updated daily, giving you piece of mind as you navigate the homebuying process.
The interest rate on a fixed rate mortgage does not change over the life of the loan, while an adjustable rate mortgage (ARM) has an interest rate that can change over time.
Yes. Maintaining a good credit score is important because it shows you can manage your debt well and make payments on time. A higher credit score is a signal to lenders that extending credit is less risky, usually leading to a more favorable mortgage rate. Your credit score is just one-way lenders check your financial health before approving a mortgage.
Monthly mortgage payments vary depending on the type of mortgage you choose, your down payment and the mortgage term. You can expect your exact monthly mortgage payments to be determined during the application process.
Our Mortgage Loan Calculator is a helpful tool to estimate your monthly mortgage payment.
The amount needed for a down payment will vary based on the type of mortgage loan you choose. Down payments can range anywhere between 3% to 20% of the total cost of the home.
There are many reasons homeowners choose to refinance their mortgages. From lowering interest rates and shortening their loan terms to tapping into home equity and changing the loan type, refinancing your mortgage is replacing your current mortgage with a new one. Before deciding on if refinancing is right for you, consider your personal financial situation and financial goals.
Applying for mortgage refinancing can be completed online or in bank or credit union branch. It's important to note, however, that applying for mortgage refinancing includes multiple steps. Before loan approval, lenders typically consider:
Seacoast Bank offers a variety of mortgage lending options to help make the dream of homeownership possible. Connect with the Seacoast Mortgage Lending team today for additional guidance and support.
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