Phone: (423) 587-2345

Mortgages

When searching for real estate in the Lakeway Area, you're going to use a local realtor. It makes just as much sense to secure your mortgage locally, right here in East Tennessee. Our loan officers have over 80 years of combined local lending experience. Unlike a corporate bank, we take the time to know you personally, so we can assess your particular needs. This way, we can tailor a loan program that's perfect for you.

Summary

We offer a variety of mortgage products and programs, including:

Mortgage 101

Especially if you're a first-time homebuyer, all the mortgage terminology can be confusing. So we've provided this list of some common mortgage terms to help you better understand the process.

Adjustable Rate Mortgage (ARM)—a mortgage in which the interest rate is adjusted periodically based on a pre-selected index.

Amortization—a fancy word that mostly means the process by which loan payments are divided into equal periodic payments that have been calculated to pay off the debt at the end of a fixed period, including the interest. In other words, your monthly mortgage payment.

Annual Percentage Rate (APR)—an interest rate that reflects the cost of a mortgage as a yearly rate. This rate takes into account any points and fees and is based on the loan going to its full term.

Debt to Income Ratio (DTI)—a ratio, expressed as a percentage, that results from dividing a borrower's monthly payment obligation on long term debts by the borrower's gross monthly income.

Earnest Money—money given by a buyer to a seller as a deposit to commit the buyer to the future transaction. Earnest money will be subtracted from closing costs.

Escrow—funds given to a third party that will be held to cover payments such as property tax or insurance payments. This will be included in your mortgage payment.

Fixed Rate Mortgage—a mortgage where the interest rate remains the same throughout the full term of the loan.

Good Faith Estimate—an estimate that lists all fees paid before closing, all closing costs and any escrow cost you will encounter when buying a home.

Loan to Value Ratio—the ratio between the amount of the mortgage loan and the appraised value of the property.

Market Value—the price that a property could possibly bring in the marketplace.

Origination Fee—a fee charged by a lender for processing a loan application; usually computed as a percentage of the loan.

Private Mortgage Insurance (PMI) —insurance that protects lenders against loss if a borrower defaults on the loan. This is required when the down payment is less than 20%.

PITI—refers to principal, interest, taxes, and insurance.