Here you will find the answers to our frequently asked
questions.
What is the difference between Fixed Rate Mortgages and Adjustable
Rate Mortgages?
Fixed Rate
Mortgages are loans in which the interest rate never changes during the life of
the loan. As a result, the principal and interest payment also does not change
during the life of the loan. The benefit of a fixed rate mortgage is you can
lock your interest rate for as long as 40 years to protect yourself against
rising interest rates.
Adjustable Rate Mortgages (ARM), also known as variable rate mortgages, are
loans in which the interest rate will adjust up and down according to an index
rate. Initial ARM rates are generally lower than fixed rates. There is a
predefined cap that limits how high the interest rate can adjust. ARMs are
beneficial for those who do not plan to stay in their homes for a long time, for
those who do not qualify for higher fixed rates and for those who are
comfortable with fluctuating payments.
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How do adjustable-rate mortgages work?
There are many types of adjustable-rate
mortgages, but all have some common features. One common feature of
adjustable-rate mortgages is an interest rate change that occurs after a
stipulated number of payments have been made. The interest rate can increase or
decrease depending on the market rate (index). Typically, the interest rate
change is based on a predetermined index value and a margin. If a customer
currently has an interest rate that is pending adjustment, the new rate would be
calculated by adding the current index rate and a margin. For example, if the
customer’s current rate was 6.000% with a 2.000% margin, the new rate would be
determined by adding the current index rate (for example, 5.000%) to the margin.
In this example, the new interest rate would be 7.000%. The maximum amount the
interest rate can change during any adjustment period is usually fixed. This
maximum adjustment is called the annual rate cap. Adjustable-rate mortgages also
have a lifetime rate cap, preventing the interest rate from exceeding a
predetermined rate.
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What are escrow accounts and how much do I need in my escrow
account?
Escrow accounts are savings accounts
established for the customer by the bank for the purpose of paying taxes,
insurance and other payments associated with the ownership of your home. The
bank is responsible for the timely disbursement of escrow funds to pay the bills
as they come due. The bank will collect funds for placement into your escrow
account with periodic payment for principal and interest. An escrow account has
sufficient funds when there is enough savings to pay all bills when they come
due. It is common practice for the bank to require an escrow cushion or extra
savings deposit totaling two months of the total estimated annual payments. The
cushion is kept in the escrow account by the bank to ensure that if the cost of
any escrowed item were to increase in the future, there would be sufficient
funds to pay all bills as they come due.
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How do I get preapproved for a mortgage?
Preapproval is easy, convenient and, best of all,
free. Simply follow the Apply
Now link on the navigational bar and choose the preapproval application
that suites your needs. Just fill out the quick application online and submit.
Normally, you should receive a decision within one to three business days.
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What items do I need to provide at time of application?
Providing all the required documentation found on our Application
Checklist when you apply will save you time and expedite the loan process.
In order to properly consider your mortgage application, we must be in receipt
of the applicable documentation below within ten calendar days from the time of
application. Failure to submit this information may cause you to lose your Rate
Lock and require you to reapply for this mortgage.
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What is Private Mortgage Insurance (PMI)?
Private Mortgage Insurance (PMI) is insurance that
protects a lender or investor against loss if a borrower stops making mortgage
payments. It makes it possible for you to buy a house with less than a 20
percent down-payment, helping you buy a home sooner than you otherwise could.
Why is PMI needed?
Studies show that homeowners with less than 20 percent invested in a home
are more likely to default, making low down-payment mortgages more risky for
lenders and investors. That’s why lenders and investors generally require
mortgage insurance for loans with down payments of less than 20 percent.
How do I benefit from PMI?
PMI makes it possible for you to buy a house with a low down-payment and get
into a home years sooner than you would otherwise.
1. If you’re a first-time buyer, PMI helps you get over the biggest hurdle to
homeownership: coming up with the traditional 20 percent down-payment.
2. If you’re a trade-up buyer, mortgage insurance allows you to consider
a wider range of homes.
3. Both first-time and trade-up buyers can benefit by putting less money
down and keeping cash for other uses: making investments, paying off debt or
paying for home improvements or emergencies.
How much
will it cost?
Premium prices vary. They are based on the size of the down payment, type of
mortgage and amount of insurance coverage. Premiums typically are included into
your monthly mortgage payment. You can pay the premium up front and finance it
as part of your mortgage or pay on a monthly basis.
How do I qualify
for an insured mortgage?
The qualifying process for loans covered by mortgage insurance is similar to
that for regular mortgage loans. Generally, you need to have enough income to
cover the monthly mortgage payment and closing costs, and have a good credit
background.
Can I buy PMI directly from an insurance company?
No. The lender arranges for private mortgage insurance coverage on your
loan. A range of PMI products, with a variety of payment options, is available
to meet your needs. When you shop for a loan, ask lenders about your PMI
options.
Can I cancel PMI?
Yes. PMI usually can be canceled when the homeowner builds up enough equity
in the home. Under federal law, PMI on most loans made on or after July 29,
1999, will end automatically once the mortgage is paid down to 78 percent of the
original value of the house.
Do I get a refund when my insurance is
canceled?
It depends on the type of premium plan you have. Most borrowers opt for the
pay-as-you-go plan. With this plan, you pay for PMI a month at a time. When
insurance is cancelled, you stop paying premiums, but you don’t get a refund.
With plans in which you pay your premium up front (at closing) or on an annual
basis, you may get a refund. Refundable premium policies are more expensive.
Consult your lender.
How is PMI different from other types of
insurance associated with homeownership?
PMI is not mortgage life insurance, which pays off a mortgage in
the event of death. PMI is not disability insurance, which makes mortgage
payments if you become disabled. PMI is not homeowners’ or hazard
insurance, which protects you from loss from theft, fire or other disaster. PMI
protects the lender and investor from loss, not the borrower.
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How can I obtain a copy of my credit report?
There are currently three major credit bureaus from which
a creditor can access your credit information.
Institutions report credit information to these three credit bureaus on a
monthly basis, providing updates on consumers who are current or delinquent on
their payments (as well as other pertinent account information). Three major
credit bureaus are reported to separately. Lenders such as Hearland Bank obtain
a report from each of the three bureaus in order to gather a full history on
each customer.
You can obtain a copy of your credit report by visiting
the following website:
FTC.gov
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What are the system requirements to use this website?
To properly view this site, we
recommend:
Internet Explorer version 5.0 or higher - Click here to upgrade Internet Explorer.
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here to upgrade Netscape.
Adobe Acrobat Reader version 4.0 or higher - Click
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PDF documents found throughout this website)
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Is Customer Service available?
Mortgage applications received after 3:00PM will be processed the next
business day.
Questions or inquiries received during non-business hours will be processed
on the next business day. Hours of operation exclude federal
holidays.
Main Office
Monday - Friday 8:00AM - 5:00PM
CST
Heartland Mortgage
14125 Clayton Road
Chesterfield, MO
63017
Telephone:
314.512.8900
Fax:
314.512.8901
Illinois
Monday - Friday 8:00AM -
5:00PM CST
Heartland Mortgage
5400 N.Illinois
Fairview Heights,
IL 62208
Telephone:
618.222.3370
Fax:
618.222.8783
Colorado
Monday - Friday 8:00AM -
5:00PM MT
Heartland Mortgage
300 Union Blvd Suite 230
Lakewood,
CO 80228
Telephone:
303.984.4100
Fax:
303.984.4138
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Is this site secure?
Yes, our
online mortgage applications and all forms are 128-bit-encrypted (an industry
standard). See our Security Statement for further details.
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I prefer to apply by telephone or by mail.
If you prefer to apply by telephone or by mail,
simply print the following documents, gather the materials outlined in the
checklist and either mail them to us or contact us toll-free at
1.800.344.0211 to speak with a loan officer to assist you with the mortgage
process.
1. Application
2. Checklist
Mail your application package to:
Heartland Mortgage
14125 Clayton Road
Chesterfield,
MO 63017
Telephone:
314.512.8900
Fax:
314.512.8901
Illinois
Heartland Mortgage
5400
N.Illinois
Fairview Heights, IL
62208
Telephone:
618.222.3370
Fax:
618.222.8783
Colorado
Heartland Mortgage
300 Union Blvd
Suite 230
Lakewood, CO 80228
Telephone:
303.984.4100
Fax:
303.984.4138
You may also contact us by clicking
here.
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In Internet Explorer 5.0, I can see a "miniature site" in
the background.
This identified problem is believed to occur only
in Internet Explorer 5.0. After selecting a product from the Rates page by
clicking the "Choose" button, the user is provided with the required disclosures
and is automatically redirected to the secure portion of the website.
When using the default security settings on Internet Explorer 5.0,
a security alert appears stating that the user will be redirected to a secure
website. The user will see in the background a "miniature site" within the
disclosure window.
By clicking "OK" on the security alert, the page will refresh to
the secure site and allow the user to continue.
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