Mortgages

Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.

There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Red River Bank can help you evaluate your choices and help you make the most appropriate decision.

For most homeowners, the monthly mortgage payments include three separate parts:

• Principal: Repayment on the amount borrowed
• Interest: Payment to the lender for the amount borrowed
• Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the parish or city tax collector and property insurance company.

The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:

• Earnest Money: The deposit that is supplied when you make an offer on the house
• Down Payment: A percentage of the cost of the home that is due at settlement
• Closing Costs: Costs associated with processing paperwork to purchase or refinance a house

Red River Bank rarely markets mortgage services through direct mail. More commonly, you may receive such offers from third parties that appear to be coming from Red River Bank, sometimes even referencing your Red River Bank loan. These third-party senders often use public records to identify and market their services to consumers who recently purchased or refinanced a home. Red River Bank does not authorize these mailings, has no affiliation with these third parties, and does not share your mortgage information with them. If you receive an offer about which you have questions or concerns, please contact the Red River Bank mortgage team.

With a fixed-rate mortgage (FRM), the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.

An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally, the interest rate that you pay is a combination of the index rate and a pre-specified margin. The Lender decides which index your loan will use when you apply for the loan, and this choice generally won't change after the closing.

When you apply for a mortgage or other type of loan, the lender pulls your credit report. This is known as a hard inquiry.

That inquiry "triggers" to lenders and insurance companies that you are looking for credit or financing. Those lenders purchase inquiry data from the major credit bureaus: Equifax, Experian, and TransUnion and then solicit their service to you.

Many types of companies buy trigger leads, including:

• Mortgage lenders
• Auto lenders and car dealerships
• Credit card providers
• Insurance companies
• Personal loan providers

Red River Bank does not share or sell your personal information with any of these companies. The privacy and integrity of our clients is of utmost importance to us.

Yes. Under the Fair Credit Reporting Act, trigger leads are legal as long as the company buying them meets certain legal requirements. In fact, the Federal Trade Commission (FTC) and Consumer Finance Protection Bureau (CFPB) encourage these types of practices because it creates competition among lenders, which can help consumers get the best possible deal on financing.

Yes. You can opt out of trigger leads to reduce the amount of prescreened offers you receive.

How to opt out:

You can opt out of pre-screened offers for 5 years (or permanently) on the web or by phone. This process can take up to 5 business days, so if your credit report has already been pulled - this may not block offers immediately.

On the Web: https://www.optoutprescreen.com/

By Phone: 1-888-5-OPT-OUT