Loans 101 | Get your loan faster | Types of Loans | Rate Sheet
When to get qualified | When to Refinance | Closing Costs | Rates and A.P.R. | Loan Application Checklist | Should you buy Points?
Refinancing Options | Rate Lock Perios | What is a credit score? | Financing Closing Costs | Fixed vs. Adjustable Rates | Mortgage Savings Tips
Types of Loans
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There’s a range of mortgage choices available for home loan financing. Some offer payments that are set for the life of the mortgage, while others feature smaller initial payments that will fluctuate with interest rate changes. Your choice in financing will depend on your unique set of circumstances – your financial lifestyle. To help you make an informed decision, we’ll make sure you understand the best option for your current situation. |
Fixed Versus Adjustable Rate
- Fixed-Rate Mortgage – This type of financing features an interest rate that is set for the life of the loan, offering predictable monthly payments. This loan usually has a higher interest rate than an adjustable-rate mortgage.
- Adjustable-Rate Mortgage (ARM) – ARMs normally start with an interest rate that’s lower than fixed-rate mortgages. But the interest rate (and your monthly loan payment) will move up or down according to market conditions. Most ARMs have interest rate caps both annually and over the life of the loan to help prevent dramatic changes in rates.
Special Home Loan Financing
KNB offers several government-sponsored home ownership incentive programs. These special financing options are designed to lower your interest rate, down payment amount and/or closing costs. Here are a few examples:
- Federal Housing Association (FHA) loans – These loans offer the benefit of a low, three-to-five-percent down payment. And sometimes, closing costs can be included in the loan amount to further reduce up-front costs.
- Veterans Affairs (VA) Loans – VA loans make 100-percent financing available to qualified military veterans with at least six months of active duty. This loan also is available to the unmarried spouses of a deceased veteran whose death was service related, or spouse of an MIA or POW.
- Kentucky Housing Corporation (KHC)- KHC loans are great for the first-time home buyer. They are subject to income guidelines.
Other Home Financing Options
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Construction Loans
If you’re building a home, a construction loan can be an ideal source of cash through the building process. Interest rates are competitive and closing costs are minimal; you won’t pay any interest until the funds are drawn or used, giving you a convenient and affordable way to meet ongoing building expenses. Plus, upon completion, we can easily and smoothly fund a permanent mortgage to pay off your construction loan.
Questions? Email Us! |
| Refinance Your Home ... and Save!
When interest rates drop by at least 1.0 percent below your existing mortgage loan rate, you may be able to save money by refinancing your loan. Contact KNB to help you determine if refinancing will benefit you:
- Reduce Your Interest Rate – A lower interest rate means lower payments
- Reduce Your Mortgage Term ... And Pay Off The Loan Faster – Refinancing to a shorter term mortgage can save you thousands of dollars in interest charges over the life of the loan.
- Convert Your Equity Into Instant Cash – Borrowing against the equity in your home can be a low-cost and often tax-deductible way to get extra money. Plus, mortgage interest rates are usually lower than other types of consumer loans.
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May We Help You?
Fill out a prequalification application online and a loan officer will be in contact with you. Or you can call a KNB Mortgage Loan officer today and we’ll work hard at making your dreams of owning a home, come true!
Main Office 270-737-6000
Radcliff Branch 270-351-5626
Variety of Loans, for a Variety of Reasons…
Whether you’re interested in a loan or line of credit, KNB has choices that make borrowing the money you need fast, simple and affordable. Prequalify Today!
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