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FAQ's

We have compiled some frequently asked questions, FAQs, that may be helpful to you. Any questions that are not listed here can be answered by contacting us by phone, email or through our easy online contact form found here.

Mortgages

What is the difference between a fixed rate and adjustable rate(or variable) mortgage? A fixed rate mortgage has a fixed interest rate and payment amount throughout the length of the loan. An adjustable rate mortgage often has a lower rate initially than a fixed rate mortgage but will adjust to based on a broader measure of interest rates known as an index.

Why do I need mortgage insurance? Private mortgage insurance, or PMI, is an insurance that protects the lender/investor if you are unable to pay your mortgage. PMI is required for mortgages if less than a 20% down payment is made. Freddie Mac and Fannie Mae backed loans, like those provided by Park Bank, allow for cancellation of private mortgage insurance when there is equity greater than 20%.

What happens if my mortgage is sold or transferred to another bank? This can be one of the most frustrating aspects of taking out a mortgage. Just when you develop a relationship with your banker and buy your dream home, a letter is sent that you now have to send your payments (and questions) to someone in another part of the country. This is not a problem for Park Bank mortgage customers because in over a century, Park Bank has never sold servicing for a Park Bank mortgageā€¦ever!

When does it make sense to refinance? When interest rates fall lower than what you are paying with your fixed rate mortgage, you may want to consider refinancing. Your personal banker will help you determine if it makes sense for you, but a good guide is to calculate how long it will take to get back the costs to refinance. If it is two years or less then it probably makes sense. Here is a video explaining this.

Can I apply for a mortgage online? A Park Bank mortgage application can easily be started online here 24/7/365. Once the application is received, you will be contacted by a Park Bank lending specialist from the location most convenient for you. This person will be your contact from start to finish, answering all of your questions and helping you through the process.

Does my credit score affect my mortgage application? Your credit score affects a number of aspects of your life and getting a mortgage is no different. The benefit of a Park Bank mortgage is that you will receive personal attention in determining what it will take to successfully obtaining a mortgage.

Visit the Consumer Financial Protection Bureau here for more of your mortgage questions.

Small business lending

What is the first step in obtaining a business loan? The first step is contacting a lender that offers SBA loans. Park Bank is an award winning SBA lender and can walk you through the process from start to finish.

Do I need a business plan to get a small business loan? Although it is not required for obtaining a SBA loan, a good business plan is important to the success of your small business. The SBA offers this guide for writing a good business plan.

What is the SBA and how does it help me with my small business? The U.S. Small Business Administration helps Americans start, build, and grow businesses. The SBA was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation. In addition, the SBA offers resources like training and educational materials for small business owners.

The Small Business Administration compiles a list of the most frequently asked questions each year. Here is the 2019 list of questions and their answers that may be helpful to you.