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Type
Rate  
APR*  
3.750%
3.880%
3.500%
3.709%
Type
Rate  
APR*  
3.875%
3.901%
3.125%
3.170%
Type
Rate  
APY*  
.70%
.70%
.40%
.40%
Type
Rate  
APY*  
1.44%
1.45%
1.19%
1.20%
View all rates / disclosures.

*(APY) Annual Percentage Yield

(APR) Annual Percentage Rate

Personal Banking
Mortgage
Center

Contact Our
Mortgage Professionals

Sharon Kuhlman

Assistant Vice President
Mortgage Lending

309.682.1484 – Direct

Click here to email Sharon

John Lofgren

Mortgage Consultant

309.682.1483 – Direct
309.369.6540 – Cell

Click here to email John

Linda Turner

Mortgage Consultant

309.682.1485 – Direct
309.453.7033 – Cell

Click here to email Linda

Mortgage Coupon

Download this coupon and save $100 on your mortgage closing costs. This offer is for a limited time only.

Mortgage 101

Applying for a mortgage can feel like you’ve fallen into a bowl of alphabet soup. FHA, ARM, PMI. What do all the letters mean? Where should you start? We’ve compiled a glossary of the most commonly-used terms to help you feel more comfortable with the mortgage application process.

Click on the links below for the answers to any questions you may have.

Adjustable Rate Mortgages (ARM)

ARMs, also referred to as Variable Rate Mortgages (VRMs) offer lower initial interest rates and can significantly reduce initial monthly payments. Their rates are subject to change at regular intervals depending on market conditions. Rate caps offer protection against extreme increases.

Annual Percentage Rate (APR)

The interest rate of a mortgage that takes into account the interest, mortgage insurance, closing costs and points paid at closing. Expressed as a yearly rate and calculated over the life of the loan.

Application

A request for an extension of credit, which requires the borrower to submit information regarding their income, savings, assets and debts, plus facts about the property being used to secure the loan.

Appraisal

An estimate of the market value of a property to assure that its value exceeds the loan amount. A fee is usually charged for this service.

Balloon Mortgage

Offered as a short-term fixed rate loan, balloon mortgages offer long-term amortization periods, so payments are equal to or less than traditional fixed rate mortgages. Balance is due at maturity. May have the option to refinance at current market rates.

Borrower

Also referred to as the mortgagor, this is the individual who obtains a mortgage loan.

Closing

A time and date that is set to transfer title of property, sign loan documents and allocate charges and credits.

Closing or Settlement Costs

Closing costs are fees paid by the borrower when a property is purchased or refinanced. These fees include, in addition to the purchase price of the property, lawyer’s fees, title search and insurance, survey charges and fees to record the deed, mortgage and other documents. These costs are summarized in the Good Faith Estimate.

Commitment Letter

A lender’s written letter of agreement to grant a mortgage, with details of the terms and conditions by which the lender will lend and the borrower will borrow funds to finance a home.

Conventional Mortgage

A mortgage not insured by FHA or VA.

Counter-offer

An offer made in response to a previous offer by the other party during negotiations for a final contract.

Credit Report

A detailed summary showing your borrowing history, including previous and current credit accounts and payment history. Mortgage lenders will refer to your credit report to determine your creditworthiness. You can request a free credit report yearly by going to www.annualcreditreport.com.

Credit Reporting Agency (or Bureau)

An agency which collects and sells information relevant to a person’s credit habits and history, then assigns a credit score to determine the creditworthiness of individuals. The three main credit reporting agencies are Experian, TransUnion and Equifax.

Equity

The value of a property minus the owner’s outstanding mortgage balance.

Equal Credit Opportunity Act

This federal law prohibits lenders from discriminating on the basis of the borrower’s race, color, national origin, religion, age, sex, marital status or public assistance program participation.

Escrow

A separate amount collected along with your scheduled mortgage payment to pay future annual insurance premiums or taxes.

Fair Credit Reporting Act

A federal law giving individuals the right to examine their own credit history, to find out if their credit information has been used by any third parties and to approach an agency to dispute a wrongful use or interpretation of their credit information.

FHA (Federal Housing Administration)

A government agency whose primary purpose is to insure residential mortgage loans.

FNMA (Federal National Mortgage Association)

A federally chartered corporation that purchases mortgages on the secondary market, pools them and sells them as mortgage-backed securities to investors on the open market. Also known as Fannie Mae.

FICO Score

Also known as a credit score, it is an indicator of the credit worthiness of the borrower and the risk associated with the loan. FICO stands for Fair Isaac Credit Organization.

Fixed Rate (Conventional) Mortgage

Provide the security of set monthly principal and interest payments throughout the length of your loan.

Good Faith Estimate

A written estimate of the settlement costs that the borrower will likely have to pay at closing, including inspections, title insurance, taxes, appraisals, etc.

Home Equity Line of Credit (HELOC)

Allows an individual to borrow up to a certain amount of money over a set period of time as determined by your lender. During that time, you can withdraw the money as you need it. As you pay off the principal, you can use the money again, like a credit card. A HELOC is beneficial for those who may need to draw money over a period of time, such as for education or ongoing medical bills.

Jumbo Mortgages

Jumbo mortgages are available for those who wish to finance a larger dollar amount.

Lender

The person or institution that offers the mortgage loan.

Lien

A legal claim against a mortgaged property, which must be paid when the property is sold.

Loan-To-Value (LTV) Ratio

The percentage comparison between the unpaid principal balance of the mortgage and the sale price or the appraised value of the property, whichever is lower. The LTV indicates if potential losses due to nonpayment can be recouped by selling the asset.

Mortgage

A method of using property (such as a home) as security for the payment of a debt (the mortgage loan).

Note

A legal document that legally binds the borrower to repay a mortgage loan at a specific interest rate in a specific period of time.

PITI

An acronym for Principal, Interest, Taxes and Insurance.

Point

A non-refundable amount, equal to 1% of the principal amount of a mortgage, charged by the lender to cover certain costs of making the loan. Paying points reduces the interest rate to be charged on the mortgage.

Pre-approval

Approval for a mortgage from a lender, subject to a formal loan application and credit check. Often used prior to shopping for a home to ensure the borrower is selecting a house in an appropriate price range.

Principal

Part of the amount borrowed which remains unpaid (excluding interest).

Private Mortgage Insurance (PMI)

Mortgage insurance provided by nongovernmental insurers and paid for by the borrower that protects a lender against loss if the borrower defaults or is unable to pay the loan. This insurance is usually required when the down payment is less than 20% of the purchase price.

Rate Lock

A commitment by a lender that guarantees a specific interest rate for a set period of time.

(RESPA) Real Estate Settlement Procedures Act

Real Estate Settlement Procedures Act – Legislation passed by the U.S. government that requires a good faith estimate of closing costs to be given to the borrower itemizing all costs of the mortgage loan.

Rights of Rescission

The ability of a borrower to nullify a mortgage contract without penalty if done within three business days following the signing of a refinance transaction.

Secondary Mortgage Market

A market for the purchase and sale of an existing mortgage.

Title

The legal document establishing evidence of ownership of a property.

Title Insurance

Protects the lender or the owner against loss in the event of a property ownership dispute.

Title Search

The process of examining all relevant records to verify the validity and completeness of the title to the property, and to confirm that there are no outstanding claims or liens on that property.

Truth in Lending

A federal and state law requiring lenders to completely disclose the full costs, terms and conditions of a mortgage to the borrower.

Variable Rate Mortgage (VRM)

VRMs, also referred to as Adjustable Rate Mortgages (ARMs), offer lower initial interest rates and can significantly reduce initial monthly payments. Their rates are subject to change at regular intervals depending on market conditions. Rate caps offer protection against extreme increases.

Contact Sharon Kuhlman

You've found your dream home, now you need a mortgage. I can help you with that! Be sure to fill in ALL the items...they are required to process the form.

Please Note:
Don't send personal account information using this form.

First Name:
Last Name:
Phone:
Email Address:  
Comments:
 
 

Contact John Lofgren

You've found your dream home, now you need a mortgage. I can help you with that! Be sure to fill in ALL the items...they are required to process the form.

Please Note:
Don't send personal account information using this form.

First Name:
Last Name:
Phone:
Email Address:  
Comments:
 
 

Contact Linda Turner

You've found your dream home, now you need a mortgage. I can help you with that! Be sure to fill in ALL the items...they are required to process the form.

Please Note:
Don't send personal account information using this form.

First Name:
Last Name:
Phone:
Email Address:  
Comments:
 
 

Education Center

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Education Center

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DLA Creative

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