Frequently Asked Questions

How do I know how much house I can afford?

Generally speaking, the amount that you can borrow will depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing and able to make. You may be able to purchase a home with a value of two or three times your annual household income, but all variables are taken into consideration. Give us a call or submit your application online, and we can help you determine exactly how much you can afford.

What is the difference between a fixed-rate loan and an adjustable-rate loan?

With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.

How do I know which type of mortgage is best for me?

There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. CB&T Mortgage Division can help you evaluate your choices and help you make the most appropriate decision.

What does my mortgage payment include?

For most homeowners, the monthly mortgage payments include four separate parts:

•Principal: Repayment on the amount borrowed

•Interest: Payment to the lender for the amount borrowed

•Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the Parish or County Tax Assessor and property insurance company.

•PMI: Private Mortgage Insurance, PMI, is a type of mortgage insurance you may be required to pay if you have a conventional loan and make less than 20% of the home’s purchase price. This insurance is arranged by the lender and provided by private insurance companies.

How much cash will I need to purchase a home?

The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:

•Earnest Money: The deposit that is supplied when you make an offer on the house

•Down Payment: A percentage of the cost of the home that is due at settlement

•Closing Costs: Costs associated with processing paperwork to purchase or refinance a house