CapitalSouth Bank - Mortgage Loans at CapitalSouth Bank

OUR PROMISE
MORTGAGE LOAN OPTIONS
SHOULD YOU REFINANCE?

Birmingham-based CapitalSouth Bank is more than a direct mortgage lender. We're a mortgage partner. Because, in addition to great rates, low fees and exceptional customer service, we offer the experience and consultative advice you need to select the absolute best mortgage loan for your home financing needs-short term and long term.

We're based in Birmingham-with offices in Huntsville and Montgomery, Alabama, Jacksonville, Florida and Atlanta, Georgia-but we lend nearly everywhere in the U.S.

So if you're looking for just the right options to purchase or refinance a home, please call on our experienced team at 1-877-254-5464.

We know you have choices when it comes to home financing. With so many lenders offering similar rates and fees, home loans are fast becoming a commodity.

If you already know what you need-and you're just looking for excellent rates and reasonable fees-give us a call. You'll find we're very competitive.

If you're looking for experienced, unbiased advice about the best home loan program for your situation, then you'll definitely want us on your short list of lenders. We're here to help-and we're expert listeners!

Whether you're looking to buy a home or refinance, we should have a program suited to your needs. And if we can't offer you a solution that's clearly in your best interest, we'll tell you.

Simply put, we're not in the business of offering mortgage loans that don't make sound financial sense for our clients.

If you'd like to know more, there's no obligation-and no pressure to make a quick decision. Just call us at 1-877-254-5464 or e-mail us at mortgage@capitalsouthbank.com. Or you can apply online right now.

Why not put a CapitalSouth Mortgage Banker to work for you today!

Fixed and Adjustable Rate Loans
Construction-to-Permanent Loans
Renovation and Remodeling Loans
Reduced Paperwork Options for the Self-Employed
Loans for First Time Homebuyers
Loans for a Second Home or a Vacation Home
Cash Out Refinance Loans
Debt Consolidation Refinance Loans
Interest Only Loans
Jumbo and "Super Jumbo" Loans
No PMI Loans (Loans without Private Mortgage Insurance)
Loans for Real Estate Investors

-By John King

Many people with perfectly good interest rates refinance their home mortgage when it actually might not be in their best interest to do so.

They are persuaded to refinance by their mortgage broker or loan officer, or perhaps they have heard so much about low mortgage rates in the media that they feel compelled to refinance when, in fact, their current loan is just fine-and maybe all they need to do is pay a little extra principal every once in a while.

There are, however, many other people with low rates (even in the 6.0% range) who have circumstances where a refinance could benefit them if done properly (and for the right reasons).

Here are the top 10 reasons to consider a refinance even if you currently have a low mortgage rate. Some of them are obvious and some are not.

OBVIOUS REASONS:

You are in an adjustable rate loan that's either at a high rate now, or has the potential to go higher.
You have a second mortgage, or home equity line, with a high rate (and large enough balance) that if refinanced into a new first mortgage-would save you money.
You want to use your home equity to make improvements to your house that will increase its value or "livability."
You need to "buy out" the equity of a spouse or co-owner.
You have credit card debt that just doesn't seem to go away and you need it to. This idea should be considered only if you have the discipline to leave the credit cards alone after paying them off.

NOT SO OBVIOUS REASONS:

You want to use your home equity for the down payment or purchase of a second home or investment property. (Given the recent decline in home values this is a great time to do it).
You can't seem to come up with the money you need to start saving for retirement, or for a child's college fund. A refinance with cash out can get you the funds you need to accomplish your goals.
You recently inherited a home, and you would like to use the equity to buy another home, invest for retirement, or child's education, property renovations, etc.
You took out a 15-year loan some time ago, but in your current financial situation you need the lower payments of a 30-year fixed rate.
You can't seem to bring yourself to pay ANY additional principal at all, you have debts to consolidate and you'd like to pay your loan off quicker. This might be a good time to consider a 20-year fixed to pay off your debt and increase your equity.

If you have enough equity, you owe it to yourself explore the potential benefits of refinancing. You might be surprised at the overall effect on your finances - both short and long term.

THE 3% SOLUTION" FOR THOSE WHO DO NOT NEED TO REFINANCE
The 3% solution is a means of paying off a 30-year loan in about 17 years, by paying an extra 3% towards your mortgage payment every year. Basically, you just add an additional 3% to your mortgage payment and mark it as "additional principal."

For example, if your payment is $1500 then you pay $1500 plus an additional $45 (3%) for a total of $1545 for the first 12 months, then you add another 3% ($46.35) to the $1545 for a total of $1591.35 in the second year and so on. You keep adding 3% to the payment each year until you have it paid off. Obviously, your mortgage payment becomes 3% more expensive each year, but most people can handle it since they tend to make 3 to 5% more each year than the year before.

Of course, if you have other debt with a higher rate than your mortgage, you'll want to apply a similar (but more aggressive) strategy to that debt.

John King is a Mortgage Banking Officer with CapitalSouth Bank. He specializes in qualifying the self-employed, working with first time homebuyers and helping those in need of Construction To Permanent loans.