Mortgage FAQs

Can I view my mortgage information online?

Mortgage information is available for viewing online. You may also make payments to your mortgage online from any Simmons Bank checking or savings account.

If you are not enrolled in Simmons Bank online banking and you wish to view your Simmons Bank mortgage loan online, you will need to enroll in Simmons Bank online banking. Enrolling in Simmons Bank online banking is fast and easy. Fees may apply.

Should I refinance my mortgage?

There are four benefits of refinancing:

• Lower your interest rate.
• Reduce your monthly payments.
• Pay off your current mortgage quicker.
• Use the equity in your house.

Do I need a certain amount of equity in my home to refinance?

Most lenders require you have between 5-10% of equity in your home before attempting to refinance. Simmons Bank requires that the loan to value (LTV) ratio not exceed 95%. This means that the amount of the new loan must be equal to or less than 95% of the current appraised value.

How can I lock in my interest rate?

To help lock-in the interest rate you want, fill out a mortgage loan pre-qualification application online. The interest rate you are quoted on the day your mortgage loan application is accepted is the rate you can lock-in to, if you choose to do so. You are only able to lock-in your interest rate for a certain amount of time called the lock period. One of our friendly mortgage loan advisors will gladly go over your loan application with you to make sure you have considered all of your financing possibilities and to discuss the lock-in rate and period.

How does the closing work in refinancing a mortgage?

Closing on a refinanced mortgage is completed the same as closing on a first mortgage. On the closing date, you will read and sign all of the closing documents and pay the closing costs.

How much can I afford?

To discover how much you can afford to spend on your new house, you will need to see how much you can afford to pay each month toward a mortgage loan.

In general, lenders prefer that your monthly mortgage payment is about 30% or less of your gross monthly income. Lenders also look at your back end ratio (debt in comparison to income).

How much will I pay in closing costs?

Closing costs include lender fees, third-party fees, and pre-paid items (interest, taxes and hazard insurance). The lender should provide you with an estimate of the closing costs soon after your application has been received. If you have a specific dollar amount in mind, you may request a good faith estimate from the lender that should include an estimate of the closing costs.

How will a prepayment penalty affect my refinance?

When you look at refinancing, you will need to consider whether the money you save will outweigh the fees you will pay to refinance. If a prepayment penalty is included in your current mortgage, you will want to take the fee associated with prepayment into consideration in your refinancing decision. Before you refinance, check your current mortgage loan papers for any prepayment penalties.

Should I prequalify?

Prequalifying lets you know how much you can afford to pay for a house, and it demonstrates to the seller that you are serious about buying. Prequalifying also makes the final application process move quicker and smoother.

What are the tax advantages of owning a home?

Income tax reductions. Interest paid on a mortgage loan and property taxes can often be deducted from your taxable income. With the tax break, it is sometimes less expensive to own a home than to rent. The longer you pay on your mortgage, the more equity that builds up in your home. You may borrow money against this equity, and the interest on a loan against equity in a home can often be tax deductible. Please consult a tax professional for more information.

What will I pay in closing costs?

Closing costs include lender fees, third-party fees, and pre-paid items (interest, taxes and hazard insurance). The lender should provide you with an estimate of the closing costs soon after your application has been received. If you have a specific dollar amount in mind to borrow, you may request a loan estimate from the lender that should include an estimate of the closing costs.

Any prepayment penalty on a loan being refinanced will increase the amount required to close. If there is enough equity in the home, the estimated closing costs will change if you change the product type or loan amount. If this should occur, be sure to ask how the changes will impact your closing costs.