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Mortgages don’t have to be complicated. You just have to have the right guide. The mortgage loan experts in our offices have more than 450 years of experience combined. So, start your mortgage information search with our Loan Resources page, and end it with a visit to the office nearest you. We’re always here to help.

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Choose from more than 70 loan officers at our locations in Kentucky, Indiana, and Tennessee, and experience the Century Mortgage difference. Many of our loan officers have been with us for years, and they know what it takes to get you into the home of your dreams. Begin here to find bios and office locations for each of our loan experts.

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Need answers and want to talk to a loan officer? Call us today, and get help with your mortgage or refinancing questions. Our branches are staffed with knowledgeable team members during regular business hours, Monday through Friday. Once you have your loan in process, our loan officers are available for you 7-days a week.

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What is a mortgage?

Generally speaking, a mortgage is a loan obtained to purchase real estate. The “mortgage” itself is a lien (a legal claim) on the home or property that secures the promise to pay the debt. All mortgages have two features in common: principal and interest.

What is loan to value (LTV), and how does it determine the size of my loan?

The loan to value ratio is the amount of money you borrow compared with the price or appraised value of the home you are purchasing. Each loan has a specific LTV limit. For example: With a 95% LTV loan on a home priced at $50,000, you could borrow up to $47,500 (95% of $50,000), and would have to pay,$2,500 as a down payment.

The LTV ratio reflects the amount of equity borrowers have in their homes. The higher the LTV the less cash homebuyers are required to pay out of their own funds. So, to protect lenders against potential loss in case of default, higher LTV loans (80% or more) usually require mortgage insurance policy.

What are the advantages of 15 and 30-year loan terms?

For a 30 year loan, in the first 23 years of the loan, more interest is paid off than principal, meaning larger tax deductions. As inflation and costs of living increase, mortgage payments become a smaller part of overall expenses.

For a 15 year loan, the loan is usually made at a lower interest rate. Equity is built faster because early payments pay more principal.

Are there special mortgages for first-time homebuyers?

Yes. We offer several affordable mortgage options which can help first-time homebuyers overcome obstacles that made purchasing a home difficult in the past. Lenders may now be able to help borrowers who don’t have a lot of money saved for the down payment and closing costs, have no or a poor credit history, have quite a bit of long-term debt, or have experienced income irregularities.

How much of a down payment do I need to make?

There are mortgage options now available that only require a down payment of 5% or less of the purchase price. But the larger the down payment, the less you have to borrow, and the more equity you’ll have. Mortgages with less than a 20% down payment generally require a mortgage insurance policy to secure the loan. When considering the size of your down payment, consider that you’ll also need money for closing costs, moving expenses, and possibly repairs and decorating.

What is included in a monthly mortgage payment?

The monthly mortgage payment mainly pays off principal and interest. But most lenders also include local real estate taxes, homeowner’s insurance, and mortgage insurance (if applicable).

What are some factors that affect my mortgage payment?

The amount of the down payment, the size of the mortgage loan, the interest rate, the length of the repayment term and payment schedule will all affect the size of your mortgage payment.

How does the interest rate factor into securing a mortgage loan?

A lower interest rate allows you to borrow more money than a high rate with the same monthly payment. Interest rates can fluctuate as you shop for a loan, so ask lenders if they offer a rate “lock-in” which guarantees a specific interest rate for a certain period of time. Remember that a lender must disclose the Annual Percentage Rate (APR) of a loan to you. The APR shows the cost of a mortgage loan by expressing it in terms of a yearly interest rate. It is generally higher than the interest rate because it also includes the cost of points, mortgage insurance, and other fees included in the loan.

What happens if interest rates decrease and I have a fixed rate loan?

If you have a fixed rate loan, the principal and interest portion of your mortgage payment will not change, even if rates decrease.  If interest rates drop significantly, you may want to investigate refinancing. Most experts agree that if you plan to be in your house for at least 18 months and you can get a rate 2% less than your current one, refinancing is smart. Refinancing may, however, involve paying many of the same fees paid at the original closing, plus origination and application fees.

What are discount points?

Discount points allow you to lower your interest rate. They are essentially prepaid interest, with each point equaling 1% of the total loan amount. Generally, for each point paid on a 30-year mortgage, the interest rate is reduced by 1/8 (or 0.125) of a percentage point. When shopping for loans, ask lenders for an interest rate with 0 points and then see how much the rate decreases with each point paid. Discount points are smart if you plan to stay in a home for some time since they can lower the monthly loan payment. Points are tax deductible when you purchase a home and you may be able to negotiate for the seller to pay for some of them.

What is an escrow account, and do I need one?

Established by your lender, an escrow account is a place to set aside a portion of your monthly mortgage payment to cover annual charges for homeowner’s insurance, mortgage insurance (if applicable), and property taxes. Escrow accounts are a good idea because they ensure that money will always be available for these payments. If you use an escrow account to pay property tax or homeowner’s insurance, make sure you are not penalized for late payments since it is the lender’s responsibility to make those payments.

What is TILA?

TILA stands for Truth in Lending Act. It requires lenders to disclose information to potential customers throughout the mortgage process. By doing so, it protects borrowers from abuses by lending institutions. TILA mandates that lenders fully inform borrowers about all closing costs, lender servicing and escrow account practices, and business relationships between closing service providers and other parties to the transaction.

What is a Loan Estimate (LE) and how does it help me?

A LE is an estimate that lists all fees paid before closing, all closing costs, and any escrow costs you will encounter when purchasing a home. The lender must supply it within three days of your application so that you can make accurate judgments when shopping for a loan.

Looking to find a Loan Officer?

Why settle for a loan officer you’re “assigned?” At Century Mortgage, we believe you should get to choose the member of the team you work with. So start that search here. First, you’ll find the most convenient location for you at any of our offices in Kentucky, Tennessee, or Indiana. Then you can check out our loan officer bios to learn more about their experience and approach. We put the power to decide in your hands.

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What information do I need? Where do I start? What forms do I need to fill out to get my loan started? These are questions that can be answered with our simple, online application process. Just click below and our easy-to-complete forms will walk you through the loan application process step by step.
Our applications are designed to give us the information we need to steer you to the right loan products. When your form is completed, a member of our team will get back to you to arrange a meeting, help you pick out a loan officer, and get you started applying for the specific loan you need.

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