Cadence Bank Mortgage offers a range of home loan solutions for purchase, refinance, and construction needs, providing clients with access to mortgage officers and detailing options through official channels; this guide covers core features, eligibility, application process, and cost considerations for those evaluating Cadence Bank Mortgage for their home financing needs.
Introduction: Who This Mortgage Is For
Cadence Bank Mortgage is suitable for individuals seeking to purchase a primary residence, refinance an existing loan, or build a new home.
Homebuyers, existing homeowners, and those considering refinancing or cash-out transactions are typical applicants.
The program is often utilized by first-time buyers, move-up buyers, and homeowners looking to access equity or achieve better terms.
Eligible properties include single-family homes, condominiums, and, in some cases, multi-unit properties; occupancy may include primary, secondary, or investment status, depending on loan type.
Key Facts (At-a-Glance)
Item
Details
Loan Purpose
Purchase / Refinance / Cash-out / Construction
Property & Occupancy
Primary residence / Second home / Investment; single-family, condo, multi-unit (varies)
Rate Type
Fixed / Adjustable-Rate Mortgage (ARM); introductory periods for ARMs vary by product
Term Length
Common terms range from 10–30 years (sample/illustrative)
APR
Varies by applicant, product, and prevailing rates; confirm current rates on Cadence Bank Mortgage
Points & Credits
Discount points and lender credits available (sample/illustrative)
Down Payment
Typical minimums depend on loan type/program; may range from 3% to 20%+ (varies)
Loan-to-Value (LTV)
Maximum LTV varies by product (sample/illustrative: up to 97% on select loans)
Debt-to-Income (DTI)
Typical caps around 43%–50% depending on loan; confirm requirements (sample/illustrative)
Mortgage Insurance
Private Mortgage Insurance (PMI) required above certain LTV; removal subject to criteria (varies)
Potential for lower down payments on select programs—suitable for first-time buyers.
Option to lock rates, offering predictability in monthly payments—especially with fixed-rate mortgages.
Local, regional, and online support options available through branch network and digital channels.
Cons
PMI (private mortgage insurance) may increase monthly costs when LTV exceeds standard thresholds.
Closing costs can be significant and vary by loan type, size, and market.
ARM products subject to rate adjustments and possible payment increases after introductory periods.
Jumbo or non-conforming loans may have stricter requirements and higher interest rates.
Prepayment penalties may apply to certain loans—review disclosures carefully.
Income, employment, and property eligibility requirements may exclude some applicants.
Costs, APR & Amortization
The nominal interest rate is the stated cost to borrow principal, while APR (annual percentage rate) includes select closing costs, discount points, and fees, providing a truer picture of borrowing costs.
Discount points reduce the interest rate but require higher upfront fees. Lender credits offset closing costs at the expense of a higher rate.
PMI (private mortgage insurance) is required when the down payment is below 20% for conforming loans, with removal governed by federal law and issuer standards.
Escrow accounts are often required to pay property taxes and hazard insurance; these items are not typically included in APR.
Monthly payments are structured through amortization, meaning a portion goes to interest and principal, with the balance shifting over the loan term.
Review the official Loan Estimate for a breakdown of costs, fees, and APR specific to your scenario.
Representative example below is for illustration only; actual terms vary and should be verified with Cadence Bank Mortgage.
Example
Loan Amount
Rate
APR
Term
Monthly Principal & Interest
Total Paid
Sample Scenario
$250,000
6.75% (sample/illustrative)
7.07% (sample/illustrative)
30 years
$1,622 (sample/illustrative)
$584,052 (sample/illustrative)
Fixed vs Adjustable (ARM)
Fixed-rate mortgages offer predictable payments for the entire term, making budgeting straightforward.
Adjustable-rate mortgages (ARMs) may start with lower introductory rates, but payments can increase after the fixed period expires.
ARMs typically follow structures such as 5/6, 7/6, or 10/6 (the first number is years at the initial rate, the second is the frequency of rate adjustments in months).
The fully indexed rate for an ARM consists of an index (such as SOFR, LIBOR replacement) plus a set margin.
Rate adjustment caps and lifetime caps apply to limit increases at each adjustment and over the life of the loan.
Assess your risk tolerance and future plans when comparing fixed vs ARM options.
Eligibility, Underwriting & Documentation
Cadence Bank typically reviews applicant credit scores, DTI (debt-to-income) ratios, and LTV (loan-to-value) ratios for qualification.
Acceptable down payment sources may include personal savings, gifts, and eligible grants; loan programs may set requirements.
Applicants must provide proof of income (pay stubs, W-2s or tax returns), asset documentation, and employment verification.
Property value and condition are confirmed through appraisal; title search and insurance also required.
Start with pre-qualification or pre-approval to estimate eligibility and strengthen offers.
Shop for rates, ideally within a 14–45 day window to minimize credit score impact (model-dependent).
Submit a full application and provide requested documents; receive a Loan Estimate outlining key terms and costs as required by federal law.
Processing phase includes appraisal, further document review, and underwriting; lender may request additional information.
Once approved, a Closing Disclosure details final terms and charges.
Loan closes at an agreed signing and funding date; property ownership is transferred or lien established in refinance.
Government-Backed & Special Programs
Cadence Bank offers access to government-backed mortgages such as FHA, VA, and USDA loans. Each has unique eligibility and down payment features.
Official loan limits, income thresholds, and property criteria apply; FHA, VA, and USDA guidelines are available from HUD/FHA, VA home loans page, and USDA Rural Development. Confirm with Cadence Bank or direct agency for program fit.
Down payment assistance and affordable housing grants may be available at state/local levels; requirements, funding availability, and loan layering rules apply.
Rate Locks, Points & When to Reprice
Borrowers may “lock in” their quoted interest rate for a specified term (often 30–60 days) to protect against market fluctuations.
Some rate lock agreements offer a float-down provision if rates decrease before closing—terms and fees may apply.
Discount points let you pay upfront fees to lower the interest rate; lender credits can offset closing costs in exchange for a higher rate.
Request updated Loan Estimates if rate, product, or costs change during the application process.
Refinance & Remortgage Options
Rate-and-term refinance allows existing homeowners to obtain a new mortgage with different terms, possibly lowering payments or shortening loan length.
Cash-out refinance enables borrowers to access equity by increasing the principal.
Streamlined refinance programs may be available for government-backed loans, offering reduced documentation or appraisal requirements. Eligibility details on agency sites (official FHA streamline info).
Calculate the break-even point for refinancing by dividing total upfront costs by monthly savings.
Risks & Responsible Borrowing
For ARMs, payment shock can occur if interest rates rise significantly at reset.
Falling property values may jeopardize equity and refinancing options.
Missing payments may lead to late fees, negative credit events, and in worst cases, foreclosure.
Budgets should plan for property taxes, insurance, maintenance, and other costs not included in monthly principal and interest.
Borrowers should avoid overextending finances; confirm total costs on official disclosures before making commitments.
Alternatives & Comparisons
Side-by-Side Comparison
Feature
Cadence Bank Mortgage
Fixed-Rate Alternative
ARM/HELOC Alternative
Rate Type
Various: fixed, ARM, construction, refinance
Fixed for 10–30 years
Variable; rate may adjust at set intervals
Down Payment
3%–20%+ (sample/depends on program)
5%–20+% (sample/illustrative)
Often 10%+ for HELOC, some ARMs allow lower
Insurance (PMI/MIP)
Required above 80% LTV (conforming loans)
PMI until LTV drops below 78%
Typically required for LTV >80%, HELOCs often exempt
Closing Costs
2%–5% (sample/illustrative)
2%–5% (sample/illustrative)
HELOCs may have opening/annual fees; ARMs similar to fixed
Frequently Asked Questions
Is Cadence Bank Mortgage available for refinancing or only for purchases?
Yes, both refinancing and purchase loans are available.
Options include rate-and-term, cash-out, and government-backed streamline refinances.
Contacting Cadence Bank can help clarify eligibility for each type.
Does Cadence Bank Mortgage require PMI or other insurance?
Private Mortgage Insurance (PMI) is typically required if the down payment is below 20%.
Government-backed loans (FHA, USDA) require their own mortgage insurance (MIP/guarantee fee).
PMI may be cancellable once LTV drops below regulatory thresholds; confirm specifics in disclosures.
What documentation is needed for a Cadence Bank Mortgage application?
Standard documentation includes income verification (W-2s, pay stubs), asset statements, and photo ID.
Purchase contracts, property information, and insurance details are often needed.
Additional docs may be requested during underwriting for verification or clarification.
Conclusion & Next Steps
Cadence Bank Mortgage serves a broad range of buyers and owners seeking home financing, with options for purchases, refinances, and construction loans.
Consider Cadence Bank if you value personalized service and access to both traditional and special government-backed mortgage products; verify all key facts, costs, and eligibility with official disclosures.
