Mortgage Questions

A mortgage is an agreement between you (a borrower) and a bank or lender to buy or refinance a home without having all the cash up front. When you obtain a mortgage, you agree to:

• Make payments over a set amount of time
• Pay back the money borrowed, plus interest
• Upkeep mortgage terms with the home as collateral for the loan

The time it takes to pay off a mortgage will vary on the term of the loan. Many conventional mortgages offer 15 or 30-year repayment terms, but that duration can be shortened if you pay more than the minimum monthly payment each month.

Many lenders typically recommend that your housing costs make up no more than 30% of your annual pre-tax income. To estimate how much home you can afford consider the following details:

• The amount of money you can put towards a down payment
• Your household income
• Any debt you have and monthly repayments, as well as your spending habits

Seacoast’s Mortgage Loan Calculator can help you estimate what your monthly mortgage payment would be.

A mortgage is for those looking to buy a home, whereas a home equity line of credit (HELOC) is designed for those interested in tapping into their home’s equity to pay for big expenses, such as home improvements, weddings and tuition. With both loan options, the home is pledged as collateral.

Seacoast Bank offers a variety of mortgage loan options including Fixed Rate Mortgages, Adjustable Rate Mortgages (ARM), Construction Loans, Jumbo Loans, Federal Housing Administration (FHA) Loans, Veteran’s Administration (VA) Loans, USDA loans and Lot Loans.

Each loan option has its own distinct benefits and requirements, making it important to research the ones that align with your unique needs.

Connect with a Seacoast Mortgage Loan Officer to explore which mortgage option could be right for you.

Thorough preparation is an important part of the mortgage loan process. In general, you’ll want to complete the steps below when applying for a mortgage:

• Use a mortgage calculator to help determine how much home you can afford
• Make sure your credit is in good shape
• Research Mortgage Loan Officers and rates
• Determine the type of mortgage you’d like to apply for
• Apply for the mortgage either online or in a branch

Though often used interchangeably, a distinct difference exists between being pre-qualified and pre-approved for a mortgage. Being pre-qualified is more high level and based on information from the buyer. On the other hand, pre-approval is more involved, as a mortgage application is needed. At this stage, the lender has reviewed the buyers’ financial details and provided an idea of how much they can borrow.

The best mortgage options for you depends on your personal financial goals. Where you choose to live, how long you plan to stay in the home, and whether you’ve served in the US Military or not may impact which mortgage loan option you choose.

Connect with a Seacoast Mortgage Loan Officer to explore which mortgage option could be right for you.

Mortgage rates may change frequently based on a variety of factors. Our mortgage rates page is updated daily, giving you piece of mind as you navigate the homebuying process.

The interest rate on a fixed rate mortgage does not change over the life of the loan, while an adjustable rate mortgage (ARM) has an interest rate that can change over time.

Yes. Maintaining a good credit score is important because it shows you can manage your debt well and make payments on time. A higher credit score is a signal to lenders that extending credit is less risky, usually leading to a more favorable mortgage rate. Your credit score is just one-way lenders check your financial health before approving a mortgage.

Monthly mortgage payments vary depending on the type of mortgage you choose, your down payment and the mortgage term. You can expect your exact monthly mortgage payments to be determined during the application process.

Our Mortgage Loan Calculator is a helpful tool to estimate your monthly mortgage payment.

The amount needed for a down payment will vary based on the type of mortgage loan you choose. Down payments can range anywhere between 3% to 20% of the total cost of the home.

Mortgage insurance is usually required for conventional mortgages if you are putting down less than 20% as a down payment for your home. However, certain mortgages, such as VA loans and FHA loans, may not require mortgage insurance at all.

There are many reasons homeowners choose to refinance their mortgages. From lowering interest rates and shortening their loan terms to tapping into home equity and changing the loan type, refinancing your mortgage is replacing your current mortgage with a new one. Before deciding on if refinancing is right for you, consider your personal financial situation and financial goals.

Applying for mortgage refinancing can be completed online or in bank or credit union branch. It’s important to note, however, that applying for mortgage refinancing includes multiple steps. Before loan approval, lenders typically consider:

• How much equity you have in your home
• Your employment information
• Your credit and banking history
• Your debt-to-income ratio
• Your goals for refinancing and other factors