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Citizens State Bank Mortgage Services' professionals are members of your community.
The majority of our mortgage officers each have 20 to 30 years of banking experience. They are available to answer questions and simplify the mortgage process.
We have the ability to “shop” the mortgage marketplace on behalf of our clients to assure the best mortgage program at the most attractive rate to fit our individual client’s needs. This process saves the client from having to “shop around” for their own mortgage.
In addition to outstanding mortgage services, our clients have the opportunity to affiliate with a true “community bank” that has established itself as a financial resource for its customers and its community.
Citizens State Bank is a local community bank started in New Baltimore, Michigan in 1922. At Citizens State Bank, we realize that financing is the key to helping our area to prosper and grow. As a true “community bank”, Citizens State Bank lends money that stays in our town, and becomes a renewable resource, constantly revitalizing our communities.
Citizens State Bank's products and services include Free Checking, Overdraft Protection, Internet Banking and Free On-Line Bill Pay in addition to a full line of deposit and lending products.
Citizens State Bank supports the communities we serve through personal involvement in civic and charitable activities. All of these investments support our mission to improve the economic vitality of the communities that we serve.
PRICE RANGE: Find out which homes are within your price range. Your mortgage lender can work with you to determine the maximum mortgage you will be able to obtain. Typically, your monthly house payment should be about 28% to 30% of your total monthly gross income, although there are exceptions.
DOWN PAYMENT: Determine how much money you'll have available for your down payment. The usual down payment is between 5% and 25%. The larger your down payment, the less interest you will pay on a mortgage.
TOTAL COSTS: Work with your mortgage lender to determine your basic monthly payment. This is known as the PITI (principal, interest, real estate taxes, and hazard or homeowners insurance). To figure your costs, add the PITI to other costs of owning the home that you are interested in:
PITI __________________________________________
Estimated Gas/Electric/Water _____________________
Estimated Maintenance _________________________
Homeowner Assn/CoOp Fees _________________________
Special District Taxes __________________________
Other ____________________________________________
APR: Annual Percentage Rate (APR) is the TRUE COST of your mortgage. The APR is the rate of the mortgage, points and various closing costs. BEWARE: If a mortgage rate looks TOO attractive, you may find hidden fees or excessive closing fees. This is why you always should ask about the APR to get the true cost of your mortgage loan.
POINTS: Finance charges paid to the lender as part of the closing costs. Each point equals 1% of your total mortgage loan (Example: For a $150,000 mortgage, one point = $1,500). Paying points will lower your interest rate.
CLOSING COSTS: Costs that the buyer of a home has to pay at the time of purchase. This can include an appraisal fee, title search, and lawyer’s fees. They may also include “points,” one-year homeowners insurance, and private mortgage insurance (if required). Closing costs are in addition to your down payment and can vary greatly from lender to lender. For instance:
Typical Closing Costs for Citizens State Bank:
| Origination Fee | $ -0- |
| Appraisal Fee | 275.00 |
| Credit Report | 9.00 each borrower |
| Application Fee | $ -0- |
| Processing Fee | 350.00 |
| Escrow Waiver Fee | -0- |
| Flood Determination | 17.00 |
| Closing Fee | 200.00 |
| Title Insurance | cost varies and is determined by loan type |
| Recording Fee | 38.00 |
| Express Mail Fee | 13.65 |
| TOTAL COSTS: | $902.65 |
— Prices shown are effective 2/2004 and are subject to change.
-- Consult with your mortgage lender for actual costs applied to your mortgage.
Of the home loans and financing options available, some choices are yours, but others are based on your specific circumstances. It helps to know the options when consulting with your lender:
Conventional: A contract between lender and borrower, at the lender’s risk. Borrower’s property is security (lender can take property for non-payment). Mortgage is not insured by a federally insured program, but may be insured with a private mortgage insurance company. Usually requires larger down payment than FHA or VA loans.
FHA : Federal Housing Administration (FHA) will insure the loan for the lender against loss in case by buyer cannot meet payments. Requires buyer to carry mortgage insurance through FHA. FHA loans are available with as little as 3% down.
VA: Veterans Administration (VA) will guarantee mortgages by private lenders to qualified active military personnel, veterans or widows. In some cases you buy a home with no down payment.
Jumbo: Special terms for properties of very high value that fall outside typical lending standards.
ARM: Adjustable Rate Mortgage (ARM) varies interest rate up or down at fixed intervals. Changes are tied to a financial index such as one-year Treasury notes.
Balloon: Mortgage offered for short terms — usually 5 or 7 years. Payments are based on what you’d pay for a 30-year loan.
Fixed Rate: Interest rate on this agreement stays the same for as long as you hold your mortgage.
Construction: Closed-end line of credit for the construction of a new home.
Interest-Only: Interest-only payments for a specified term.
Note: Not all lenders offer all of these mortgage options. Be sure to work with a lender who can provide all of the options that the mortgage industry offers to assure that you get the best mortgage to fit your individual purchase and financial situation.
| Interest Years |
4 | 4.5 | 5 | 5.5 | 6 | 6.5 | 7 | 7.5 | 8 | 8.5 | 9 |
| 5 | 18.42 | 18.65 | 18.88 | 19.11 | 19.34 | 19.57 | 19.81 | 20.04 | 20.28 | 20.52 | 20.76 |
| 10 | 10.13 | 10.37 | 10.61 | 10.86 | 11.11 | 11.36 | 11.62 | 11.88 | 12.14 | 14.50 | 12.67 |
| 15 | 7.4 | 7.65 | 7.91 | 8.18 | 8.44 | 8.72 | 8.99 | 9.28 | 9.56 | 9.85 | 10.15 |
| 20 | 6.06 | 6.33 | 6.60 | 6.88 | 7.17 | 7.46 | 7.76 | 8.06 | 8.37 | 8.68 | 9.00 |
| 30 | 4.78 | 5.07 | 5.37 | 5.68 | 6.00 | 6.33 | 6.66 | 7.00 | 7.34 | 7.69 | 8.05 |
Use this chart to determine your monthly payments of principal and interest. Determine the rate of interest you will pay. Then move down this column until you reach the appropriate “months” column. Multiply this amount by the total number of thousands you plan to borrow.
EXAMPLE: $150,000 mortgage for 30 years at 5.5% will cost 150 x $5.68 or $852.00 per month.
Use our MORTGAGE CALCULATOR to figure your loan payment and for educational information on shopping for a mortgage. Or CALL 888-598-8900 to speak with a Citizens State Bank mortgage consultant.