Cumberland Bank & Trust - A customer service-oriented community bank, serving Montgomery County & Clarksville, Tennessee.

Home Mortgage FAQs

Why choose Cumberland Bank & Trust as my mortgage lender?

CB&T is the right choice because we have a department that is dedicated to Mortgage Lending. Our specialists have over 10 years experience in assisting customers with their mortgage needs. We are a one stop shop; which means we originate, process, underwrite (make the loan decision) as well as close your loan – all under one roof. We are part of a Community Bank, but can offer the same products that you would expect from a larger institution. We strive to maintain the spirit of a Community bank by being committed to providing you with excellent customer service. We would love the opportunity to exceed your expectations, so contact one of our mortgage loan specialists today.

Can I finance an investment property?

Yes, you can. The interest rate may be higher and/or discount points could be charged as well as the minimum required down payment or investment will be higher. This is because there is more risk involved when lending on a property that is not your primary residence. Additional conditions apply. Contact one of our home loan specialists to learn more.

Why should I refinance my current mortgage?

There are numerous reasons customers refinance their current mortgage:
• To lower the monthly payment and/or interest rate
• To refinance their adjustable rate mortgage into a fixed rate.
• To receive cash out to payoff debt or make home improvements.
• To lower the term on the mortgage
• To obtain permanent financing once the construction of the home is complete.
We can help you decide what options best suits your needs. Contact one of our home loan specialists to learn more.

What does a mortgage payment consist of?

Your total monthly payment is more than just your mortgage. There are expenses that go along with owning a home. Principal & Interest payments (P&I) depends on your loan amount, the interest rate and the number of years it takes to repay the loan. Principal is the amount you pay each month to reduce your loan balance. Interest is the amount you pay each month to borrow money. Mortgage Insurance is required for loans with less than a 20% down payment. This will be an additional expense added to your monthly payment. There are numerous variables that affect the amount of the monthly Mortgage Insurance expense. Property taxes are also included. The amount is based on the tax assessment or the value in the case of new construction in which an assessment has not been made. Homeowner’s Insurance is also included. You can call one or more insurance agents to get an estimate. If flood insurance is required, you will need to obtain quotes and this will be added to your monthly payment. Homeowner’s Association or condominium Fee’s are considered, as applicable.

Do I need a down payment?

CB&T offers low down payment and even “no” down payment options. The amount is dependent on the loan product, loan purpose, occupancy, credit profile, income and property location. Contact one of our home loan specialist for additional information.
For a Step-by-step guide to your home loan, you can visit one of our offices to pick up Your Home Loan Toolkit or Download your Home Loan Tool Kit today!

Is a Fixed Rate or Adjustable Rate Mortgage best for me?

Fixed-rate loans have interest rates that don’t change during the term of the loan. If you want a predictable mortgage payment, choose a Fixed-rate. Adjustable rate loans have rates that are linked to an index, prime and margin and therefore can change over time. They often start out with a lower payment, but the rate and payment can increase quickly. Consider factors that affect your decision, such as how much a higher monthly payment would affect your budget if the rate were to increase. Another factor, is how long do you plan on staying in your home? You can learn more about Arms by visiting www.consumerfinance.gov/owning-a-home or by contacting one of our home loan specialists.