Looking to buy, build or refinance your home? You have come to the right place.
LNB understands how intimidating the home buying process can be, even for the most experienced buyers. Our Online Center can help you find your area’s mortgage specialist, answer frequently asked questions, and provide insight into your specific lending needs using our handy calculators.
And, what makes LNB stand out from the rest? Our team of dedicated mortgage specialists ready to assist you every step of the way to help determine the best mortgage solution for you and make the application process fast and easy.
If you are considering the purchase of a new home, LNB has a variety of loan options available. We offer low down payment options, a No Closing Cost Program, and other lending programs customized to your needs. All of our mortgage programs offer the security of a fixed rate for the length of your loan. These can be used to purchase a primary residence, second home, or an investment property. And, if you’re buying a home that could use some renovations, ask about our Purchase and Rehab Program- the perfect loan to finance both the purchase of the home and those upgrades all into one! Contact an LNB Mortgage Specialist to help determine which mortgage program is right for you.
With current low rates, this may be a great time to consider a mortgage refinance. Refinancing your existing mortgage may help reduce your monthly payment, or you can choose a shorter loan term that will provide potentially substantial interest savings. Additionally, you can use the equity in your home to take cash out, which can be used to pay off higher-rate debt, complete home improvement projects, or for any other purpose. One of our knowledgeable Mortgage Specialists can review your existing mortgage details and see if refinancing may be worthwhile for you.
LNB offers an assortment of Home Equity Loans and Lines of Credit to meet your needs. Home Equity Loans can be used for a variety of purposes, including debt consolidation, home improvements, and college expenses. You can choose the security of a fixed-rate Home Equity Loan, with a fixed payment and rate for the life of the loan. Or, enjoy the flexibility of a Line of Credit and the ability to advance funds when you need it. Ask about our Assurance Home Equity Line of Credit, which combines the convenience of a line and the protection of a fixed-rate for the first five years. And, with all our home equity products, there are no closing costs! Contact your local LNB Branch to find the home equity product that best suits your needs.
Building your dream home can be an amazing experience but it can also be a daunting task with so many decisions to make. A Construction-to-Permanent Loan from LNB can simplify the financing process. Our Mortgage Specialists are experienced at the additional challenges of a construction loan. We work closely with you and your builder throughout the process. And, we offer long-term rate lock options to provide the security of knowing what your payment will be, and offer flexible draw schedules to keep your builder happy. Our Construction Program can also be used to complete an addition or renovations to your current home. Contact an LNB Mortgage Specialist, and take advantage of our expertise in construction lending.
- Should I refinance?
- How much will my fixed rate mortgage payment be?
- How much will my adjustable rate mortgage payments be?
- How much will my payments be for a balloon mortgage?
- Should I rent or buy?
- Which mortgage is better for me?
- How much will I save by increasing my mortgage payment?
- How much mortgage might I qualify for?
- How much home can I afford?
- Should I consolidate my loans?
FIND YOUR PERSONAL MORTGAGE SPECIALIST.
JAMES M. ALLISON
Assistant Vice President & Mortgage Specialist
Locations: Monroe County
JOSEPH M. ARBOGAST
Assistant Vice President & Mortgage Specialist
Locations: Canandaigua & surrounding areas
Banking Officer & Mortgage Specialist
Locations: Yates County
Locations: Farmington & surrounding areas
VALORIE A. HEINZMAN
Assistant Vice President & Mortgage Specialist
Locations: Geneva & surrounding areas, Seneca County, Clyde
TRISHA A. MASTRODONATO
Banking Officer & Mortgage Specialist
Locations: Western Wayne County, Ontario, Macedon, Newark
CRAIG R. MIETZ
Assistant Vice President & Mortgage SpecialistLocations: Cayuga County, Onondaga County, Wolcott
Frequently Asked Questions
The maximum percentage of your home’s value depends on the purpose of your loan, how you use the property, and the loan type you choose, so the best way to determine what loan amount we can offer is to complete our online application!
Please contact your LNB Mortgage Specialist to review today’s rate and discuss locking in your interest rate.
First of all, let’s make sure that we mean the same thing when we discuss “mortgage insurance.” Mortgage insurance should not be confused with mortgage life insurance, which is designed to pay off a mortgage in the event of a borrower’s death. Mortgage insurance makes it possible for you to buy a home with less than a 20% down payment by protecting the lender against the additional risk associated with low down payment lending. Low down payment mortgages are becoming more and more popular, and by purchasing mortgage insurance, lenders are comfortable with down payments as low as 5% of the home’s value. It also provides you with the ability to buy a more expensive home than might be possible if a 20% down payment were required.
The mortgage insurance premium is based on the loan to value ratio, type of loan, amount of coverage required by the lender and your credit history. Usually, the premium is included in your monthly payment and one month of the premium is collected as a required advance at closing.
It may be possible to cancel private mortgage insurance at some point, such as when your loan balance is reduced to a certain amount – below 80% of the property value. Recent Federal Legislation requires automatic termination of mortgage insurance for many borrowers when their loan balance has been amortized down to 78% of the original property value. If you have any questions about when your mortgage insurance could be cancelled, please contact your Mortgage Specialist.
If you’ve ever purchased a home before, you may already be familiar with the benefits and terms of title insurance. But if this is your first home loan or you are refinancing, you may be wondering why you need another insurance policy.
The answer is simple: The purchase of a home is most likely one of the most expensive and important purchases you will ever make. You, and especially your mortgage lender, want to make sure the property is indeed yours: That no individual or government entity has any right, lien, claim, or encumbrance on your property.
The purpose of a title insurance company is to make sure your rights and interests to the property are clear, that transfer of title takes place efficiently and correctly, and that your interests as a homebuyer are fully protected.
Title insurance companies provide services to buyers, sellers, real estate developers, builders, mortgage lenders, and others who have an interest in real estate transfer. Title companies typically issue two types of title policies:
1) Owner’s Policy. This policy covers you, the homebuyer.
2) Lender’s Policy. This policy covers the lending institution over the life of the loan.
Both types of policies are issued at the time of closing for a one-time premium, if the loan is a purchase. If you are refinancing your home, you probably already have an owner’s policy that was issued when you purchased the property, so we’ll only require that a lender’s policy be issued.
Before issuing a policy, the title company performs an in-depth search of the public records to determine if anyone other than you has an interest in the property. The search may be performed by title company personnel using either public records or, more likely, the information contained in the company’s own title plant.
After a thorough examination of the records, any title problems are usually found and can be cleared up prior to your purchase of the property. Once a title policy is issued, if any claim covered under your policy is ever filed against your property, the title company will pay the legal fees involved in the defense of your rights. They are also responsible to cover losses arising from a valid claim. This protection remains in effect as long as you or your heirs own the property.
The fact that title companies try to eliminate risks before they develop makes title insurance significantly different from other types of insurance. Most forms of insurance assume risks by providing financial protection through a pooling of risks for losses arising from an unforeseen future event, say a fire, accident or theft. On the other hand, the purpose of title insurance is to eliminate risks and prevent losses caused by defects in title that may have happened in the past.
This risk elimination has benefits to both the homebuyer and the title company. It minimizes the chances that adverse claims might be raised, thereby reducing the number of claims that have to be defended or satisfied. This keeps costs down for the title company and the premiums low for the homebuyer.
Buying a home is a big step emotionally and financially. With title insurance you are assured that any valid claim against your property will be borne by the title company, and that the odds of a claim being filed are slim indeed.
A mortgage often involves many fees, such as the appraisal fee, title charges, attorney fees, and state or local taxes. These fees vary from state to state and also from lender to lender. Any lender or broker should be able to give you an estimate of their fees, but it is more difficult to tell which lenders have done their homework and are providing a complete and accurate estimate. We take quotes very seriously. We’ve completed the research necessary to make sure that our fee quotes are accurate to the city level – and that is no easy task!
To assist you in evaluating our fees, we’ve grouped them as follows:
Third Party Fees
Fees that we consider third party fees include the appraisal fee, the credit report fee, the settlement or closing fee, the survey fee, title insurance fees, and flood certification fees.
Third party fees are fees that we’ll collect and pass on to the person who actually performed the service. For example, an appraiser is paid the appraisal fee, a credit bureau is paid the credit report fee, and a title company or an attorney is paid the title insurance fees.
Taxes and other unavoidables
Fees that we consider to be taxes and other unavoidables include: State/Local Taxes and recording fees. These fees will most likely have to be paid regardless of the lender you choose. If some lenders don’t quote you fees that include taxes and other unavoidable fees, don’t assume that you won’t have to pay it. It probably means that the lender who doesn’t tell you about the fee hasn’t done the research necessary to provide accurate closing costs.
Fees such as origination fees, application fees, document preparation fees, and processing fees are retained by the lender and are used to provide you with the lowest rates possible.
This is the category of fees that you should compare very closely from lender to lender before making a decision.
You may be asked to prepay some items at closing that will actually be due in the future.
One of the more common pre-paid items is called “per diem interest” or “interest due at closing.” All of our mortgages have payment due dates of the 1st of the month. If your loan is closed on any day other than the first of the month, you’ll pay interest, from the date of closing through the end of the month, at closing. For example, if the loan is closed on June 15, we’ll collect interest from June 15 through June 30 at closing. This also means that you won’t make your first mortgage payment until August 1. This type of charge should not vary from lender to lender. All lenders will charge you interest beginning on the day the loan funds are disbursed. It is simply a matter of when it will be collected.
If an escrow account will be established, you will make an initial deposit into the escrow account at closing so that sufficient funds are available to pay the bills when they become due.
If your loan requires mortgage insurance, one month of the mortgage insurance will be collected at closing. Whether or not you must purchase mortgage insurance depends on the size of the down payment you make.
If your loan is a purchase, you’ll also need to pay for your first year’s homeowner’s insurance premium prior to closing. We consider this to be a pre-paid item.
The interest rate market is subject to movements without advance notice. Locking in a rate protects you from the time that your lock is confirmed to the day that your lock in period expires.
A lock in is an agreement by the borrower and the lender that specifies the number of days for which a loan’s interest rate and points are guaranteed. Regardless of how interest rates move after you’ve locked in, your interest rate is guaranteed so long as your loan closes within the lock in period.
When Can I Lock?
In some cases, your online application will provide all the information needed and you will have the option to lock after loan approval. To discuss your Rate Lock options please contact your LNB Mortgage Specialist or our Mortgage department at: 315-665-0221.
We charge a deposit for locking in your interest rate. This deposit is fully refundable so long as your loan closes within the lock period of your agreement. Please contact your LNB Mortgage Specialist or our Mortgage department at 315-665-0221 to review the refundability of your lock in deposit.
We currently offer a lock in period of 60 days This means your loan must close within 60 days from the day you lock in your rate.
Once you lock in your interest rate, we are not able to renegotiate lock in agreement changes.
None of the loan programs we offer have penalties for prepayment. You can pay off your mortgage any time with no additional charges.
A 15-year fixed rate mortgage gives you the ability to own your home free and clear in 15 years. And, while the monthly payments are somewhat higher than a 30-year loan, the interest rate on the 15-year mortgage is usually a little lower, and more important – you’ll pay less than half the total interest cost of the traditional 30-year mortgage.
However, if you can’t afford the higher monthly payment of a 15-year mortgage don’t feel alone. Many borrowers find the higher payment out of reach and choose a 30-year mortgage. It still makes sense to use a 30-year mortgage for most people.
Who Should Consider a 15-Year Mortgage?
The 15-year fixed rate mortgage is most popular among younger homebuyers with sufficient income to meet the higher monthly payments to pay off the house before their children start college. They own more of their home faster with this kind of mortgage, and can then begin to consider the cost of higher education for their children without having a mortgage payment to make as well. Other homebuyers who are more established in their careers, have higher incomes and whose desire is to own their homes before they retire, may also prefer this mortgage.
Advantages and Disadvantages of a 15-Year Mortgage
The 15-year fixed rate mortgage offers two big advantages for most borrowers:
- You own your home in half the time it would take with a traditional 30-year mortgage.
- You save more than half the amount of interest of a 30-year mortgage. Lenders usually offer this mortgage at a slightly lower interest rate than with 30-year loans. It is this lower interest rate added to the shorter loan life that creates real savings for 15-year fixed rate borrowers.
The possible disadvantages associated with a 15-year fixed rate mortgage are:
- The monthly payments for this type of loan are roughly 10 percent to 15 percent higher per month than the payment for a 30-year.
- Because you’ll pay less total interest on the 15-year fixed rate mortgage, you won’t have the maximum mortgage interest tax deduction possible.
Compare Them Yourself
Use the “How much can I save with a 15 year mortgage?” calculator in our Resource Center to help decide which loan term is best for you.
Mortgage interest rate movements are as hard to predict as the stock market and no one can really know for certain whether they’ll go up or down.
If you have a hunch that rates are on an upward trend then you’ll want to consider locking the rate as soon as you are able. Before you decide to lock, make sure that your loan can close within the lock-in period. It won’t do any good to lock your rate if you can’t close during the rate lock period. If you’re purchasing a home, review your contract for the estimated closing date to help you choose the right rate lock period. If you are refinancing, in most cases, your loan should close within 60 days. However, if you have any secondary financing on the home that won’t be paid off, allow some extra time since we’ll need to contact that lender to get their permission.
If you think rates might drop while your loan is being processed, you can consider taking a risk and letting your rate “float” instead of locking. After you apply, you can discuss locking in your interest rate by contacting your LNB Mortgage Specialist.
Points are considered a form of interest. Each point is equal to one percent of the loan amount. You pay them at your loan closing in exchange for a lower interest rate over the life of your loan. This means more money will be required at closing, however, you will have lower monthly payments over the term of your loan.
To determine whether it makes sense for you to pay points, you should compare the cost of the points to the monthly payments savings created by the lower interest rate. Divide the total cost of the points by the savings in each monthly payment. This calculation provides the number of payments you’ll make before you actually begin to save money by paying points. If the number of months it will take to recoup the points is longer than you plan on having this mortgage, you should consider the loan program option that doesn’t require points to be paid.
If you’d prefer not to make this calculation the “old-fashioned way,” we have a points calculator!
The Federal Truth in Lending law requires that all financial institutions disclose the APR when they advertise a rate. The APR is designed to present the actual cost of obtaining financing, by requiring that some, but not all, closing fees are included in the APR calculation. These fees in addition to the interest rate determine the estimated cost of financing over the full term of the loan. Since most people do not keep the mortgage for the entire loan term, it may be misleading to spread the effect of some of these up front costs over the entire loan term.
Also, unfortunately, the APR doesn’t include all the closing fees and lenders are allowed to interpret which fees they include. Fees for things like appraisals, title work, and document preparation are not included even though you’ll probably have to pay them.
For adjustable rate mortgages, the APR can be even more confusing. Since no one knows exactly what market conditions will be in the future, assumptions must be made regarding future rate adjustments.
You can use the APR as a guideline to shop for loans but you should not depend solely on the APR in choosing the loan program that’s best for you. Look at total fees, possible rate adjustments in the future if you’re comparing adjustable rate mortgages, and consider the length of time that you plan on having the mortgage.
Don’t forget that the APR is an effective interest rate–not the actual interest rate. Your monthly payments will be based on the actual interest rate, the amount you borrow, and the term of your loan.
Interest rates fluctuate based on a variety of factors, including inflation, the pace of economic growth, and Federal Reserve policy. Over time, inflation has the largest influence on the level of interest rates. A modest rate of inflation will almost always lead to low interest rates, while concerns about rising inflation normally cause interest rates to increase. Our nation’s central bank, the Federal Reserve, implements policies designed to keep inflation and interest rates relatively low and stable.