One of the most important ways LNB Community Bank seeks to invest
in the community is through our mortgage programs. It is our goal to help
increase home ownership in the neighborhoods we serve. There are several
ways we seek to do this:
- All loan decisions are made locally by lenders
who work in the community they serve.
- We offer a wide variety of terms,
products, and rate plans to help you purchase your home.
- Our lenders
are knowledgeable and will help walk you through every step of the
process. If you have questions, they will take the time necessary
to answer them. This is the biggest purchase most people will
ever make. It is important that you are comfortable with the process.
Look through our various Financial Calculators to find out what your
payment would be, or how much of a house you can afford.
Whether you are looking
at purchasing a new home or refinancing your existing home, we have
the right product for you. We offer mortgage loans for up
to 30 years. One of our mortgage officers will meet with you one-on-one
to determine what type of loan best meets your needs. LNB Community Bank services all loans, so anytime you have a question regarding your
loan you can just stop by and talk to one of our officers.
For those customers that do not qualify for a traditional mortgage, we partner with companies that might be able to provide you with flexible mortgage financing options. These options include 100% financing on both purchases and cash out refinances, in some cases without requiring mortgage insurance. These products may even be available to customers with low credit scores, derogatory credit histories, or high debt to income ratios.
When you're ready to buy a new home, let LNB Community Bank take you there! Our lending professionals have experience in guiding
like you through the often confusing mortgage loan process to develop
a loan that fits your needs. To help you with your new-home purchase,
we have outlined four basic steps:
Step 1: Pre-Qualification - Determine the mortgage amount you can afford,
using our home mortgage calculators.
Step 2: Determine the Appropriate Type of Loan - LNB Community Bank
offers a variety of mortgage loans.
Step 3: Compare Interest Rates - We offer
competitive rates that help make home ownership
Step 4: Apply for a Loan - Our downloadable
mortgage application or Apply Online.
Whether you prefer the security of a fixed rate mortgage, or the flexibility
of an adjustable rate mortgage, LNB Community Bank can meet your
home financing needs.
What is a Fixed Rate Mortgage?
Fixed rate loans allow you to avoid any rate changes for the entire life
of your loan. You determine the amortization or repayment period that
best fits your needs. If rates are low and will be rising, fixed rate
loans are a good option because they lock in the low rates. LNB Community Bank offers fixed rate loans with up to 30 years to repay.
Consider a fixed rate mortgage if you:
- Want the certainty of a fixed principal and interest payment
- Feel that mortgage rates are low and believe the interest rates will
- Need to work within a fixed budget
What is an Adjustable Rate Mortgage?
Adjustable rate mortgages (ARM) are set up with an initial fixed rate
period followed by periodic adjustments on the interest rate. Adjustments
have a maximum 2% annual and 6% lifetime cap with the initial rate
being the floor. ARM loans generally start at a lower rate and payment
fixed rate loans. If rates are fluctuating, ARM rates are the best
option because they don’t lock you into a higher rate, however,
the rate in an ARM will not fall below the initial rate. ARM loan
1Year ARM, 3 Year ARM, and 5 Year Reset. Consider
an adjustable rate mortgage if you:
- Want or need more home
than you can qualify for at a fixed rate
- Are confident your income
- Believe interest rates will probably stay the same or
- Plan on moving within five to seven years of buying your home
Fixed Vs. Adjustable Rates
Most loans offer either a fixed or adjustable interest rate, although
some offer you a choice. This chart illustrates the advantages and disadvantages
of both fixed and adjustable rate loans.
Regular monthly payment amount for installment loans
helps budget planning. Rate is locked in, will not increase during
Higher initial interest rate. Can't take advantage
of falling interest rates unless you refinance your loan.
Initial rate is usually lower. If rates fluctuate, rate
can decrease, however, not lower than initial rate.
Rate may increase during term of loan (although can't
exceed ceiling). More difficult to plan your budget.
LNB Community Bank can provide a letter to the borrower stating
that you have been pre-qualified for a loan with us. Oftentimes this
you negotiate a lower price on your new home.
It's easy to start the pre-approval process. Just take a few minutes
to download and complete our residential mortgage loan application. Then
review our application checklist and gather together the required documents,
so that when you schedule an appointment with one of our loan officers,
everything will be in order to process your pre-approval as quickly as
possible. Please call (812) 922-3231 for our Lynnville Office or (812)
925-3326 for our Chandler Office.
Please bring the following with you when applying for your mortgage loan:
and completed Residential Mortgage Loan Application;
- Last two years tax
returns and W-2’s;
- Last two pay stubs, for each working borrower;
- Real estate mortgage loan
numbers, lenders addresses and loan balances;
- All other creditors, loan
numbers, addresses and loan balances;
- Credit card statements showing
account numbers and balances;
- If application for a purchase of real estate,
we need a copy of the purchase agreement;
- If buying on contract, we need
a copy of the contract agreement; and
- Copy of Drivers License if you
do not currently have an account with
Estimation of Closing Costs
So that you can make an informed decision about the largest, most exciting
expenditure of your life, as a free service, LNB Community Bank will estimate closing costs, monthly costs, and total first-year housing
on the home and financing option of your choice.
If your application is approved, you will need to provide LNB Community Bank with proof of hazard insurance. The amount of insurance
is determined by adding your current mortgage balance to the amount
of home equity financing for which you have been approved.
If it is determined that your property is in a flood zone, you will be
required to carry flood insurance in an amount determined by federal
Planning to Refinance?
If you have equity in your home, now may be the time to refinance at
today's low rates! Refinancing can help you:
- Lower your monthly payments
- Pay off your mortgage more quickly
- Lock in a lower rate
- Get a better adjustable rate for your adjustable
- Consolidate debt
- Purchase an item you have been thinking about
- Complete that project around
How do you get started?
LNB Community Bank makes it easy.
Get started in 3 easy steps
Step 1: Determine the rate you’re
paying on your current mortgage. Perform some quick comparisons with our
Step 2: Contact one of our loan officers. We can provide you with a customized
rate quote and determine other costs associated with refinancing.
Step 3: Apply for a Loan - Our downloadable
mortgage application or Apply Online.
Residential Mortgage Loan Application is in Adobe Acrobat® (PDF) format
and requires Acrobat
Reader. If you do not have Acrobat Reader installed on your computer,
click on this icon for a free download.