Inaccurate Mortgage Payment Estimates with Taxes and Insurance
A standard mortgage payment is often quoted by a mortgage lenders with either just the principal or interest portion of the monthly payment or the principal and interest as well as the monthly allotment for taxes and insurance. The terms used by the mortgage industry for these monthly mortgage payments are referred to by a couple of acronyms. PI is used to refer to the principle and interest payment and PITI is used to refer to the full payment of principal, interest, taxes and insurance.
When the mortgage lender is quoting a payment that includes the TI or taxes and insurance portion of a monthly mortgage payment, this number is frequently just and estimate and is often inaccurate.
Miscalculating the monthly amount of property taxes or insurance is generally not intentional. When a potential home loan borrower first calls a mortgage lender for a mortgage rate quote, a common question is what the monthly payment will be. It is fairly easy to provide a mortgage payment amount based on the loan amount, the mortgage rate offered by the mortgage lender and the term of the loan. In fact, with these figures, an exact mortgage payment can be calculated that includes principal and interest. Now when it comes time to quote the payment with taxes and insurance, the mortgage lender has to rely on an estimate of these figures based on the property value and location or use figures that are provide by the borrower.
In either case, the PITI monthly payment that is initially quoted is generally going to be an estimate that has quite a bit of room for error. This error amount is magnified in the current low mortgage rate and high property tax period.
As an example, a home in Naperville Illinois worth $500,000.00 will have a property tax bill of $12,500.00 ( approximately ), with a 20% down payment the loan amount would be $400,000, with mortgage rate of 4.50% the monthly mortgage payment would be $2,026.74. This is the principal and interest portion of the monthly mortgage payment. By dividing the annual taxes of $12,500.00, the tax portion of the monthly mortgage payment is $1,041.67. If the annual home owner’s insurance bill is $775.00, the insurance portion of the monthly bill would be $64.58. This puts the total PITI payment at $3,132.99. Of the total PITI monthly mortgage payment, almost 35% of the payment is for taxes and insurance.
Exact property taxes are typically available only through public records or through tax data published in a local multiple listing services. Once the mortgage loan request is being processed, the mortgage lender will have a more exact figure on the real estate taxes based on information retrieved form the county tax offices.
The same issue of inexact figures applies to hazard insurance or home owners insurance. The exact number for the insurance costs will come from the insurance company not the loan officer or the borrower. In the meantime, the figures that used in the initial calculations are just estimates.
Escrow accounts, sometimes called impound accounts are deposit accounts established by the mortgage lender to pay annual property tax bills and insurance premiums. The escrow amount is initially set up with approximately 1/6 of the annual real estate tax bill and 1/16 of the annual insurance bill. The cost or amount of money needed to fund the escrow account will impact the amount of funds need at the loan closing.
If the insurance policy and / or the property taxes are misquoted, it can be quite a shock when the mortgage borrower arrives to the loan closing and has to come up with more funds to cover changes in the escrow account and more importantly, discover for the first time the actual monthly mortgage payment including PITI is significantly higher than thought based on that first mortgage payment quote they received.
To avoid these surprises, pay attention to the numbers. When a mortgage lender quotes a payment, understand what is covered in that mortgage payment. Is it the mortgage payment PITI or just the PI and further recognize how these numbers were calculated. Check the results with a mortgage calculator for the term and mortgage rate and go the extra step to verify the tax payment amount and insurance costs.
What Type of Mortgage is Best for You?
When buying or refinancing a home, choosing the right mortgage is essential. The type of mortgage that is chosen can help a home owner towards greater financial stability, provide flexibility for life’s unforeseen circumstances, or help to build net worth at a faster rate. The right mortgage can make owning a home much easier, as well as help improve a home owner’s financial situation, but don’t wait until the time of the loan application to decide which mortgage loan is best suited for your needs.
The number of mortgage loan products available has dwindled in recent years as many of the esoteric loan products, such as sub prime loans and stated income – state assets loans are no longer being marketed. There are, however, many mortgage choices available and choosing the right one can be overwhelming. Prospective home loan borrowers should assess their financial situation and the attributes found in each loan type before choosing a type of mortgage, to help determine which mortgage is right based for their financial position.
Mortgages currently available usually fall into just a few main categories. The main mortgage loan categories are either fixed rate mortgages, adjustable rate mortgages, or a balloon mortgage. There are also FHA mortgages and jumbo mortgages, but these are categories of mortgages which in turn will have fixed rate terms, adjustable rate terms and balloon terms.
Each of these mortgage loans have different features and benefits, making them work well for different financial situations. There are also many types of individual mortgages within these categories that may involve how the rate changes on an adjustable rate mortgage or the term of the mortgage whether it is fixed, adjustable or a balloon loan.
Fixed rate mortgages are the most common home loan products and become an even larger share of mortgage originations when mortgage rates are low. A fixed rate mortgage may be right for you if you are on a fixed salary and have a regular budget. A fixed rate mortgage allows the borrower the security of knowing what their monthly payment will be each month, and this payment does not change. Fixed rate mortgages can be obtained with a variety of different terms with the 15 year terms and 30 year term being the most common.
The 30 year fixed rate home loan is by far the most common loan among all mortgage loans. Borrowers that choose shorter terms on fixed rate loan will build equity faster in their home and generally get a slightly lower mortgage rate. While it is certainly nice to build equity faster, standard 30 year loans do not have prepayment penalties and the borrower can prepay their loan at anytime either with a little extra every month, with an extra payment annually or a lump sum payment as they see fit and build equity quickly at their own pace.
Adjustable rate mortgages have the disadvantage of having a mortgage rate that may change over time and the advantage of a lower initial mortgage rate. In a low rate environment many borrowers become concerned that interest rates over the long term have only one direction in which they may go, which is up. The prospect of higher mortgage rates drives more borrowers to fixed rate loans even if the initial rate is modestly higher on the fixed rate loan. Of course, should mortgage rates decline, an adjustable rate mortgage may also experience a reduction in rate while fixed rate loans will not.
Another consideration, often overlooked in comparing an adjustable rate mortgage and a fixed rate mortgage in low interest rate environments, is that the difference between a fixed rate home loan and adjustable rate loan is often quite small. If interest rates rise it is always advantageous to borrow money at a low fixed interest rate that is subsequently paid back with a monthly payment that has been eroded in value by an increasing rate of inflation. And when mortgage rates are already relatively low, there is little room for an adjustable rate mortgage to come down any further.
An adjustable rate mortgage may very well still be a choice for those just starting out, who may not be able to afford a big mortgage payment or for those borrowers who know they will be in the home for only a short period of time. An adjustable rate mortgage allows the borrower to lock in a lower interest rate and low monthly mortgage payment amount for the first year or even few years of the loan. When the initial low rate expires, the monthly payments and mortgage rate may go up. Theoretically, by that point the borrower will be able to afford the higher payments, if they are just starting in their careers or will have moved on if they intended to reside in the home for only a short period of time.
Balloon mortgages generally have level payments for a certain number of years and then the remaining balance on the loan is due before the scheduled payments pay the loan off in full. The initial payment period is based on a longer period of time than the time at which the full balance is due. For example, balloon mortgage payments are frequently based on a 30 year term even though the full balance will due at the end of shorter term such as 5 years. Once the level payment period ends and the balloon balance is due, the borrower can refinance, sell the property or otherwise pay off the loan. The benefit of the balloon loan is a lower mortgage rate. The difference in rate when mortgage rates are high may be substantial but the difference is often quite modest when rates are low.
Before committing to any type of mortgage, research your options carefully. The key to making a sound financial decision regarding the choice of a mortgage is to both identify and measure the risks associated with that mortgage and to then determine if the risks worth the reward and even if any risks associated with a bad outcome be tolerated. But, the borrower would fully understand the risks, rewards and the costs of the home loan before filing out a mortgage loan application.
Mortgage Rates in California with Bank of the West
Bank of the West is the second largest bank based in California ranked by assets. Bank of the West offers a plethora of consumer deposit and loan products in the state including mortgage loans in California with competitive mortgage rates.
Bank of the West provides a number of home loan products to choose form including fixed rate loans, adjustable rate loans and FHA loans.
Fixed rate mortgages through Bank of the West come with a variety of repayment terms.
The fixed rate loans have fixed principal and interest payments for the life of the loans and come with a reduced rate option with the bank’s Relationship Pricing which is available to qualifying Bank of the West customers.
The Bank of the West adjustable rate mortgages have an initial interest rate that is often lower compared to fixed rate mortgages but may change due to current market conditions or interest rates. These mortgage loans are also available with the bank’s Relationship Pricing which is available to qualifying Bank of the West customers.
The mortgage interest rate on the adjustable rate loans will have rate changes on the loans that are capped depending on loan program and the loans do not have negative amortization provisions so the principal balance cannot increase. The adjustable rate mortgages come with a variety of loan options and rates.
Bank of the West continues to offer competitive rates on FHA Loans. These loans have a several different loan terms and interest rates. FHA loans also have flexible credit and qualifying standards.
Current mortgage rates in California offered by Bank of the West include the following:
A 30 year fixed rate home loan with a mortgage rate of 5.00% and no points and an APR of 5.082%.
The 30 year loan with 1.0 point has a mortgage rate of 4.875% and an APR of 5.001%.
A 15 year fixed rate loan in California offered by the bank has a mortgage rate of 4.75% and no points with a 4.891% APR.
A 3/1 adjustable rate mortgage has a mortgage rate in California of 4.125% with no points and a 3.422% APR.
The 5/1 ARM which has a fixed rate period of five years as opposed to 3 years that is on the 3/1 ARM, also has a mortgage rate of 4.125% with no points and a 3.553% APR.
The California mortgage rates and fees listed are available to borrowers with an excellent credit history on owner occupied single family properties with a 20% or greater down payment. The actual mortgage interest rate and fees available to a borrower will be based on their credit history and other qualifying conditions.
The California mortgage interest rates, annual percentage rates (APRs), and points listed are subject to change without notice and assume the Bank of the West Relationship Pricing. The bank Relationship Pricing requires applicants to maintain a Bank of the West personal checking account with a debit card and automatic electronic mortgage payments.
All home loans in California are subject to bank approval and underwriting. For current mortgage rates and additional loan information on Bank of the West Products, the main customers service number is 800-488- 2265 or a new loan request can be called into the bank at 800-563-1852.
Bank of the West has 700 retail bank branch locations in 19 states including California.
Current FHA Mortgage Rates February 27, 2010
Findlocamortgagerates.com conducts a weekly survey of the top bank mortgage lenders. The results of this survey helps borrowers compare mortgage interest rates and product information from some of the largest U.S banks so consumers looking to purchase a new home or refinance can easily find the right mortgage that fits their needs.
The following list of mortgage loans and rates is a sample form the survey. These rates are for FHA loans or a mortgage that is backed by the Federal Housing Administration (FHA). FHA loans along with VA loans are generally referred to as government loans
The following list displays current interest rates for a sample of various combinations of mortgage rates and fees available on FHA loans from this week’s mortgage rate survey.
US Bank 30 year fixed rate FHA loan has a rate of 4.875% with one point and a 5.495% APR.
The same 30 year FHA loan from US Bank is available with a mortgage rate of 5.25% and no points and an APR of 5.792%.
Bank of America Home Loans offers a 30 year fixed rate FHA loan that has a mortgage rate of 4.875% and 1.375 points with an APR of 5.109%.
Wells Fargo Home Mortgage offers a 30 year fixed rate FHA home loan with a mortgage rate of 5.125% with one points and an APR of 5.85%.
HSBC Mortgage rate on a 30 year FHA is at 5.125% with no points and a 5.310% APR.
SunTrust Mortgage has a 30 year FHA home loans with a mortgage rate of 4.875% and 1 point resulting in a 5.425% APR.
The APR includes the interest rate, fees, points, certain closing costs and mortgage insurance. FHA mortgage rates, points and closing costs are subject to change without notice.
The preceding is a sample of programs and interest rates; other loans and rate options are available from the listed mortgage lenders. Rates listed are for purchases on owner-occupied single family primary residences. The accuracy of the home mortgage details is not guaranteed.
All loans are subject to bank approval. Some mortgage loan products may have geographic restrictions, other restrictions may apply and additional conditions will apply to obtain these home loans.
Regions Mortgage Locations South Carolina
Regions Mortgage offers a variety of residential mortgage loans. Regions Mortgage is based in Birmingham, Alabama and operates as a subsidiary of Regions Financial. Regions Mortgage offers homebuyers and existing home owners loan products with fixed rates and adjustable rate terms, including FHA loans and VA home loans. The Regions Mortgage website provides timely mortgage rate information as well as an abundance of information on the mortgage loans that are available for both purchasing and refinances.
Regions Financial Corporation operates as the holding company for Regions Bank which provides a range of commercial, retail, and mortgage banking services. The bank operates approximately 1,900 full-service banking offices and 2,300 automated teller machines in Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, Texas, and Virginia.
Regions Mortgage locations in South Carolina:
Regions Mortgage
146 Sea Island Pkwy
Beaufort, SC 29907
843-525-8427 – Phone
843-524-1135 – Fax
Regions Mortgage
2 Lafayette Place
Hilton Head Island, SC 29926
843-342-2661 – Phone
843-342-2667 – Fax
Regions Mortgage
107 Chesterfield St S
Aiken, SC 29801
803-641-8690 – Phone
803-641-8696 – Fax
Regions Mortgage
112 Haywood Road
Greenville, SC 29607
864-289-2172 – Phone
864-289-2117 – Fax
Regions Mortgage
1200 Two Island Ct
Mount Pleasant, SC 29466
843-849-5798 – Phone
843-849-5799 – Fax
Regions Mortgage
1010 Gervais Street
Columbia, SC 29201
803-779-3836 – Phone
803-779-9214 – Fax
Regions Mortgage
170 Meeting Street
Charleston, SC 29401
843-937-4144 – Phone
Regions Mortgage
149 Columbiana Drive
Columbia, SC 29212
803-832-0221 – Phone
803-749-3478 – Fax
Regions Mortgage
216 E Main Street
Lexington, SC 29072
803-957-8454 – Phone
803-951-1981 – Fax
Regions Mortgage
1210 Ben Sawyer Blvd
Mount Pleasant, SC 29464
843-971-1291 – Phone
843-971-0548 – Fax
GMAC Mortgage Rates February 7, 2010
GMAC Mortgage Corporation is among the largest residential mortgage servicers and originators in the U.S. GMAC Mortgage originates first and second residential mortgage loans. Mortgage loans offered by GMAC Mortgage encompass a wide assortment of mortgage loan programs and options for both home purchases and refinances.
GMAC Mortgage is an indirect wholly owned subsidiary of GMAC LLC which includes several financial services companies including Ally Bank, Capmark Financial Group, GMAC Mortgage Subservicing and Ditech Funding.
With GMAC Mortgage, prospective home loan borrowers have several mortgage products to choose from depending on their personal financial situation. GMAC Mortgage traditional mortgage products include fixed rate mortgages, adjustable rate mortgages and FHA loans. All loans come with competitive rates and some of the loans offered include flexible down payment options.
Current mortgage rates and terms offered by GMAC mortgage include the following:
A 30 year fixed rate loan that has a mortgage rate of 5.125% with 0.195 points and an APR of 5.180%.
For buyers that would like a lower a mortgage rate and are willing to pay slightly higher closing costs, GMAC mortgage offers a 30 year fixed rate loan with a mortgage rate of 4.625% and 2.570 points and an APR of 4.888%.
15 year fixed rate loan has a mortgage rate of 4.375% with 0.320 points and an APR of 4.487%.
As an adjustable rate mortgage option, GMAC offers a 5/1 LIBOR ARM that has a mortgage rate of 3.875% with 0.070 points and an APR of 3.916%.
Mortgage interest rates are subject to change, and closing costs depend on the property location and the home loan options. All mortgages are subject to approval and additional conditions will apply.
The mortgage rates and terms listed are based on a home loan of $250,000.00 for a purchase transaction on a single family home valued at $325,000.00 in the state of Illinois.
The mortgage loan process with GMAC can be started easily online at their website or by calling 1.877.941.4622 and speaking with a loan representative.
Before choosing any mortgage loan product, make sure to fully understand the terms and conditions offered.
Regions Mortgage Locations Arkansas
Regions Mortgage is headquartered in Birmingham, Ala. Regions Mortgage is one of the largest residential mortgage loan originators and servicers in the U.S. Regions Mortgage is a part of Regions Financial which is the holding company for Regions Bank. Regions Mortgage has mortgage locations throughout the South, Midwest and Texas.
Regions Mortgage offers a wide variety of options for new home loan borrowers and those existing home owners that may be looking to refinance. Mortgage loan programs offered by Regions Mortgage include fixed rate home loans, adjustable rate mortgages, jumbo loans, FHA and VA loans. All of these mortgage loans also have various terms including standard 15 year and 30 year mortgages. And most all of the mortgage loans offered come with several different mortgage rate and point options to choose from.
Regions Mortgage locations in Arkansas:
Regions Mortgage
318 Hester Drive
Harrison, AR 72601
870-391-8200 – Phone
870-391-8290 – Fax
Regions Mortgage
835 Central Avenue
Hot Springs, AR 71901
501-624-8828 – Phone
501-624-8881 – Fax
Regions Mortgage
400 West Capitol, 2nd FL
Little Rock, AR 72201
501-371-6642 – Phone
501-371-7020 – Fax
Regions Mortgage
723 Garrison Avenue
Fort Smith, AR 72901
479-494-4617 – Phone
479-783-1956 – Fax
Regions Mortgage
5400 Rogers Avenue
Fort Smith, AR 72903
479-478-1200 – Phone
479-478-1270 – Fax
Regions Mortgage
800 South Shackleford
Little Rock, AR 72211
501-221-9364 – Phone
501-223-0869 – Fax
Regions Mortgage
106 South 2nd Street
Cabot, AR 72023
501-843-9344 – Phone
501-843-7051 – Fax
Regions Mortgage
201 S. Denver
Russellville, AR 72801
479-968-1234 – Phone
Regions Mortgage
696 Desoto Blvd.
Hot Springs Village, AR 71909
501-922-3706 – Phone
501-922-4420 – Fax
Regions Mortgage
5050 Northgate Road
Rogers, AR 72758
479-464-1272 – Phone
479-464-1284 – Fax
Regions Mortgage
4900 JFK Blvd
North Little Rock, AR 72116
501-753-7262 – Phone
501-758-3681 – Fax
Regions Mortgage
2400 East Highland
Jonesboro, AR 72401
870-974-5305 – Phone
870-974-5315 – Fax
Regions Mortgage
146 West South Street
Benton, AR 72015
501-315-2000 – Phone
501-303-2130 – Fax
Regions Mortgage
1465 Joyce Blvd
Fayetteville, AR 72703
479-684-5217 – Phone
479-684-5241 – Fax
Regions Mortgage
1023 Main Street and Chestnut
Conway, AR 72032
501-450-4651 – Phone
501-450-4788 – Fax
Regions Mortgage
1507 East Race Street
Searcy, AR 72143
501-230-5389 – Phone
501-268-3686 – Fax
Regions Mortgage
1141 East Main
Batesville, AR 72501
870-793-7551 – Phone
870-698-2237 – Fax
Regions Mortgage
2905 Prince Street
Conway, AR 72032
501-450-4725 – Phone
501-450-4647 – Fax
Mortgage Clauses and Covenants
When a home loan borrower closes on a new mortgage loan, included in the documents that have to be executed is the mortgage document. The mortgage is the security instrument that pledges the property as collateral for the loan. The mortgage secures your promise that the money borrowed will be repaid.
The terms mortgage and loan are often used interchangeably. But, to be precise the mortgage is actually a lien on the property which secures the loan. The terms of the loan such as the mortgage rate, term and monthly payment are set out on the note not the mortgage. Conditions of default and the terms regarding the security of the property are established in the mortgage document.
The mortgage will include various clauses and terms that protect the mortgage lender as well as the home loan borrower. Examples of the various clauses and covenants that may be included in a mortgage or deed of trust may include:
The mortgage is dated and contains the names of mortgagor and mortgagee. If the deed of trust from is used, the borrowers name appears, identified as trustor, grantor, or mortgagor. The name of the trustee or grantee and the name of the mortgage lender, who is both the trust beneficiary and the note holder also appear.
The note executed by the borrower is reproduced in the mortgage or deed of trust. The note includes an acceleration clause allowing the mortgage lender to declare the entire home loan balance remaining immediately due and payable if the borrower is in default.
The note may provide that the borrower is permitted to pay off the loan any time prior expiration of the full mortgage term without incurring a financial penalty for the early payoff, or it may provide for a penalty to be imposed on the borrower (prepayment penalty) if the debt is satisfied prior to expiration of the full term. FHA, VA and conforming fixed rate loans do not have a prepayment penalties.
The mortgage requires the borrower to pay all real property taxes and assessments on a timely basis, keep the building in a proper state of repair and preservation, and protect the building against loss by fire or other casualty by an insurance policy written in an amount at least 80 percent of the value of the structures. Many mortgage lenders may also require insurance for 100 percent of the loan value minus the lot value.
The mortgage contains a defeasance clause giving the borrower the right to defeat and remove the lien by paying the loan indebtedness in full.
The mortgage provides the right of foreclosure to the mortgage lender if the borrower fails to make payments as scheduled or fails to fulfill other obligations as set forth in the mortgage.
In the deed of trust form, a clause gives the mortgage lender irrevocable power to appoint a substitute trustee or trustees without notice and without specifying any reason, by recording and instrument of appointment on the public record where the deed of trust is recorded.
In both the mortgage form and the deed of trust form, a covenant always specifies that the mortgagor has a good and marketable title to the property pledged to secure payment of the note.
The mortgage or deed of trust may contain an alienation or due on sale clause entitling the lender to declare the principal balance immediately due and payable if the borrower sells the property during the mortgage term and making the mortgage unassumable without the mortgage lenders permission. Permission to assume the mortgage at a mortgage rate prevailing at the time of assumption can be given at the mortgage lenders discretion. The alienation clause may provide for release of the original borrowers from liability if an assumption is permitted. This release is sometimes referred to as a novation.
The mortgage or deed of trust always provides for execution by the borrower. The mortgage or deed of trust provides for acknowledgment by the borrower to make the document eligible for recording on the public record for the mortgage lenders protection.
Regions Mortgage Locations Tennessee
Regions Mortgage is part of Regions Financial Corporation which is a financial holding company that operates throughout the South, Midwest and Texas. Regions mortgage provides traditional commercial, retail and mortgage banking services to its customers. Regions mortgage has over 600 loan originators in 16 states. Regions Bank operates approximately 1,900 banking offices and 2,300 ATMs.
Regions Mortgage has a number of mortgage locations in Tennessee. Regions Mortgage representative can assist prospective home loan borrowers on purchases and refinances. They can provide assistance to help select the best mortgage rate or the best mortgage loan program whether that loan is a fixed rate loan, adjustable rate mortgage, FHA loan or a jumbo home loan.
Regions Mortgage locations:
Regions Mortgage
1206 Murfreesboro Road
Franklin, TN 37064
615-748-2306 – Phone
615-748-2929 – Fax
Regions Mortgage
1600 Division St
Nashville, TN 37203
615-748-2154 – Phone
615-748-2155 – Fax
Regions Mortgage
7744 Poplar Avenue
Germantown, TN 38138
901-756-2646 – Phone
901-756-2644 – Fax
Regions Mortgage
800 25th Street
Cleveland, TN 37311
423-339-4644 – Phone
423-339-4655 – Fax
Regions Mortgage
805 Memorial Boulevard
Murfreesboro, TN 37122
615-758-1604 – Phone
615-758-1621 – Fax
Regions Mortgage
315 Deadrick Street
Nashville, TN 37237
615-748-2983 – Phone
615-736-6761 – Fax
Regions Mortgage
2052 South Main
Milan, TN 38358
731-686-2900 – Phone
731-686-2923 – Fax
Regions Mortgage
40 Burton Hills Blvd
Nashville, TN 37215
615-748-2825 – Phone
615-748-2823 – Fax
Regions Mortgage
11400 Parkside Drive
Farragut, TN 37934
865-540-5507 – Fax
Regions Mortgage
208 Sunset Drive, Suite 204
Johnson City, TN 37601
423-282-7691 – Phone
423-282-7696 – Fax
Regions Mortgage
100 E. Vine Street, #300
Murfreesboro, TN 37130
615-904-2818 – Phone
615-904-2808 – Fax
Regions Mortgage
610 North Garden Street
Columbia, TN 38401
931-380-5070 – Phone
931-380-5005 – Fax
Regions Mortgage
423 North Parkway
Jackson, TN 38305
731-661-6822 – Phone
731-661-6880 – Fax
Regions Mortgage
1100 Ridgeway Loop, Suite 100
Memphis, TN 38120
901-821-8801 – Phone
901-821-8802 – Fax
Regions Mortgage
810 Crescent Centre Drive-Suite 300
Franklin, TN 37067
615-309-7370 – Phone
Regions Mortgage
6200 Poplar Avenue
Memphis, TN 38119
901-580-5492 – Phone
901-580-5390 – Fax
Regions Mortgage
112 Long Hollow Pike
Goodlettsville, TN 37072
615-851-5295 – Phone
615-851-5232 – Fax
Regions Mortgage
10245 Kinston Pike, 2nd Fl
Knoxville, TN 37922
865-521-5220 – Phone
865-521-5227 – Fax
Regions Mortgage
3572 Tom Austin Hwy
Springfield, TN 37172
615-382-4150 – Phone
615-382-7632 – Fax
Regions Mortgage
181 Belle Forrest Circle
Nashville, TN 37221
615-662-1177 – Phone
615-662-1690 – Fax
Regions Mortgage
10 West Broad Street
Cookeville, TN 38501
931-526-2181 – Phone
931-372-6626 – Fax
Regions Mortgage
4934 Columbia Pike
Spring Hill, TN 37174
931-380-5081 – Phone
931-380-5063 – Fax
Regions Mortgage
11 Murray Guard Drive
Jackson, TN 38305
731-984-6150 – Phone
731-668-2479 – Fax
Regions Mortgage
601 Market Street, 4th Floor
Chattanooga, TN 37402
423-752-7800 – Phone
423-752-1617 – Fax
Regions Mortgage
128 North 2nd Street
Clarksville, TN 37040
931-553-5234 – Phone
931-553-5253 – Fax
Regions Mortgage
1415 Union Avenue
Memphis, TN 38104
901-762-5970 – Phone
901-762-5995 – Fax
Regions Mortgage
1604 21st Avenue S
Nashville, TN 37212
615-748-2440 – Phone
615-748-2441 – Fax
Regions Mortgage
840 State Street
Bristol, TN 37620
423-652-8554 – Phone
423-652-8541 – Fax
Regions Mortgage
3191 Lebanon Pike
Nashville, TN 37214
615-748-2593 – Phone
615-748-8418 – Fax
Regions Mortgage
5515 Brainerd Road
Chattanooga, TN 37411
423-894-1058 – Phone
423-899-4899 – Fax
Regions Mortgage
242 Lindell Street
Martin, TN 38237
731-587-3131 – Phone
731-588-2548 – Fax
Regions Mortgage
120 South Forrest Avenue
Camden, TN 38320
731-584-8223 – Phone
731-584-7114 – Fax
Regions Mortgage
3020 Kirby Whitten Rd
Bartlett, TN 38134
901-388-5868 – Phone
901-388-3361 – Fax
Regions Mortgage
3577 Hacks Cross Rd.
Memphis, TN 38125
901-759-5266 – Phone
901-759-5277 – Fax
Regions Mortgage
2 Union Square, #100 Tallan Bldg
Chattanooga, TN 37402
423-757-5807 – Phone
423-757-5815 – Fax
Regions Mortgage
1861 North Highland
Jackson, TN 38305
731-984-6000 – Phone
Regions Mortgage
333 East Broadway
Maryville, TN 37801
865-981-1470 – Phone
865-981-1411 – Fax
Regions Mortgage
6100 Kingston Pike
Knoxville, TN 37919
865-673-5751 – Phone
865-673-5755 – Fax
Regions Mortgage
805 E. Broadway Street
Lenoir City, TN 37771
865-673-5779 – Phone
865-521-5976 – Fax
Regions Mortgage
175 Miller Avenue
Crossville, TN 38555
931-484-6121 – Phone
931-456-9033 – Fax
Regions Mortgage
201 West Morris Blvd
Morristown, TN 37813
423-587-7100 – Phone
423-587-7171 – Fax
Regions Mortgage
2120 Gunbarrel Road
Chattanooga, TN 37421
423-634-4021 – Phone
423-634-4023 – Fax
Regions Mortgage
101 Elm Street
Shelbyville, TN 31760
931-684-9936 – Phone
931-680-0922 – Fax
Regions Mortgage
7540 East Brainerd Road, Suite 111
Chattanooga, TN 37421
423-752-1655 – Phone
423-321-6302 – Fax
Regions Mortgage
4383 Summer Avenue
Memphis, TN 38122
901-684-5400 – Phone
901-766-1668 – Fax
Regions Mortgage
2615 Old Fort Parkway
Murfreesboro, TN 37128
615-849-3014 – Phone
615-849-3018 – Fax
Regions Mortgage
7550 W. Farmington Boulevard
Germantown, TN 38138
901-762-5908 – Phone
901-762-5914 – Fax
Regions Mortgage
2155 Lowes Drive
Clarksville, TN 37040
931-648-2202 – Phone
931-905-0863 – Fax
Regions Mortgage
6231 Stage Road
Bartlett, TN 38134
901-385-5904 – Phone
901-385-5916 – Fax
Regions Mortgage
103 East Pleasant
Covington, TN 38019
901-475-5000 – Phone
901-475-5014 – Fax
Regions Mortgage
285 East Main
Gallatin, TN 37066
615-230-4600 – Phone
615-230-4615 – Fax
Regions Mortgage
4101 Hillsboro Road
Nashville, TN 37215
615-386-9862 – Phone
615-297-4937 – Fax
Regions Mortgage
415 Broad Street, Second Floor
Kingsport, TN 37660
423-229-0140 – Phone
423-229-0235 – Fax
Mortgage Loans and the Mortgage Note
In making a mortgage loan, the mortgage lender requires the borrower to sign a promissory note. The mortgage note or loan note, which must be in writing, provides evidence that a valid debt exists. The note covers the terms of repayment for the home loan. The note contains a promise that the borrower will be personally liable for paying the amount of money set forth in the note and specifies the manner in which the debt is to be paid. Payment is typically in monthly installments of a stated amount, starting on a specific date. The note also states the annual rate of interest or mortgage rate to be charged on the outstanding principal balance of the home loan.
The mortgage note is a negotiable instrument. It is an unconditional promise or order to pay a specified sum of money on demand at a definite time or, in the case of home loans, at definite time intervals. The note is made “to the order of “or “to bearer”. The negotiability of an instrument allows it to function the same as currency. Promissory notes, stocks, bonds, and checks are examples of negotiable instruments. The person responsible for the notes payment may be called the payor, promisor, or obligor. The person who is to receive the money may be called a payee, promise, or oblige. In real estate, mortgage lenders will require the buyer to sign a security instrument such as a mortgage or trust deed, which are not negotiable instruments. The mortgage is the security instrument that pledges the property as collateral for the loan.
Understanding the terms, interest rate and principal is essential to understanding notes, mortgages, deeds of trust, and all real estate financing methods. Interest is the money paid for using someone else’s money the interest rate is the rate at which the interest is calculated. The principal is the amount of money on which interest is either paid or received. In the case of an interest bearing note, principal is the amount of money the lender has lent the borrower and on which the borrower will pay interest to the mortgage lender.
The note can be an interest only note on which interest is paid periodically until the note matures and the entire principal balance is paid at maturity. Construction loans or notes are usually of this type. Or the note can be a single payment loan that requires no monthly mortgage payments on either principal or interest until the note matures, and the entire principal and interest is paid at maturity. This is seen more frequently in short term notes. The note also can be an amortizing note in which periodic monthly payments are made on both principal and interest until such time as the principal is completely paid. Most mortgage loans are of this type.
The original principal is the total amount of the note or the home loan. This amount remains the same in an interest only or a one payment loan until the entire principal is paid. In a amortizing mortgage loan, periodic monthly mortgage payments are applied first toward the interest and amount of principal gradually decreases. As each successive payment is made, the interest is applied to the declining principal balance; therefore with each successive payment, the interest portion of the payment decreases and the principal portion increases. The first payment is applied mostly toward interest, and the last payment is applied mostly toward principal. The payments can be set at a fixed rate for the life of the home loan, or they can fluctuate as adjustable rate mortgages do based on a specified index, or they can change at set intervals according to a set formula.
Simple interest is usually used to calculate mortgage loan interest. This means the annual rate of interest is used to calculate payments even though payments normally are made monthly. Payments sometimes are set up to be paid quarterly or annually. A payment plan in which payments are made every two weeks or biweekly mortgages have become popular because it reduces the term of the loan and saves a significant amount of interest over the life of the loan. A current home loan can sometimes be converted into a biweekly payment plan.
Mortgage loan interest almost always is calculated in arrears, although it sometimes is calculated in advance. If interest is calculated in arrears, a monthly payment due on the first of the month includes interest for using the money during the previous month. If interest is calculated in advance, a monthly payment due on the first of the month includes interest for the month in which the payment is due. When paying off or assuming a mortgage loan, one must know if the interest is paid in advance or in arrears to determine the amount of interest owed or to be prorated at the home loan closing. Interest must be paid in arrears on all loans sold in the secondary mortgage market.