Southern Trust Mortgage Rates, Options, and APRs Compared

Southern Trust Mortgage offers a range of mortgage rates and options to suit different needs and budgets.

Their rates vary depending on the loan type, with 30-year fixed-rate mortgages starting at 4.25% APR. 15-year fixed-rate mortgages start at 3.5% APR, while 5/1 adjustable-rate mortgages start at 3.875% APR.

For homebuyers with lower credit scores, Southern Trust Mortgage offers subprime mortgage options with higher APRs, up to 7.5%.

See what others are reading: 5 Year Interest Only Mortgage Rates

Southern Trust mortgage rates are quite competitive, with a minimum loan amount of $50,000. This makes them a viable option for those looking to finance a home purchase.

The interest rate for a 30-year fixed mortgage from Southern Trust is 4.25%. This rate can be locked in for 60 days, giving borrowers time to finalize their loan.

For those with excellent credit, Southern Trust offers a 4.125% interest rate on a 30-year fixed mortgage. This is a great opportunity for borrowers to save on interest over the life of the loan.

Broaden your view: Mortgage Rates below 4

Loan Duration/Length is a crucial aspect of any loan, and Southern Trust Mortgage's data for 2023 provides valuable insights into the most popular loan durations.

The most frequently cited loan duration was 30 Year, with 1,984 originations, totaling $621,740,000 in value.

The average loan amount for a 30 Year loan was $313,377, with an average fee of $9,135 and an average interest rate of 6.68%.

In contrast, the 15 Year loan was the second most popular, with 21 originations, totaling $6,005,000 in value.

The average loan amount for a 15 Year loan was $285,952, with an average fee of $8,066 and an average interest rate of 6.25%.

Here is a summary of the most popular loan durations:

These statistics provide a clear picture of the most popular loan durations and their associated characteristics, which can help borrowers make informed decisions about their loan options.

Southern Trust Mortgage lent most frequently to those with incomes in the $100k-150k range, with 514 originations.

This income band accounted for a significant portion of the total value of loans, at $177,340,000.

The average loan amount for this group was $345,019, with average fees of $10,252 and an average interest rate of 6.63%.

In contrast, the second most popular income band was $75k-100k, with 452 originations.

This group had a total value of loans of $115,440,000, with an average loan amount of $255,398 and average fees of $8,490.

Here's a breakdown of the loan details by income band:

These numbers give us a clear picture of the types of borrowers Southern Trust Mortgage is working with.

Southern Trust Mortgage lent most frequently to those with DTI ratios of 30-36%, with 266 originations. This is a significant number, suggesting that borrowers with this debt-to-income ratio are a priority for the lender.

The average loan amount for borrowers with a DTI ratio of 30-36% is $328,083, with an average fee of $8,365 and an average interest rate of 6.66%.

For more insights, see: No Ratio Mortgage Loans

Here's a breakdown of the top 3 DTI ratios and their corresponding loan details:

These numbers give us a clear picture of the types of borrowers Southern Trust Mortgage is targeting with their lending. Borrowers with a DTI ratio of 30-36% seem to be a sweet spot for the lender, with a higher number of originations and relatively lower fees compared to other DTI ratios.

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Southern Trust Mortgage's average total fees/closing costs for a 30 year fixed rate mortgage were $9,135.

The average total origination fees for 30 year fixed rate mortgages across all lenders were $9,089.

That's a difference of $46, which might not seem like a lot, but it's worth considering when choosing a lender.

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Southern Trust mortgage rates are offered by Southern Trust Bank, a community bank with a long history of serving the southern United States.

Southern Trust Bank is headquartered in Chattanooga, Tennessee, and has been in operation since 1934.

Their mortgage rates are competitive, with options for fixed and adjustable rates.

The bank offers a range of mortgage products, including conventional, FHA, and VA loans.

Southern Trust Bank has a strong reputation for customer service and community involvement.

Their mortgage professionals are knowledgeable and experienced, with a deep understanding of the local market.

To apply for a Southern Trust mortgage, you'll need to provide financial documents, such as pay stubs and bank statements, to demonstrate your creditworthiness.

Southern Trust mortgage rates are competitive, with rates starting as low as 3.75% APR for a 30-year fixed mortgage, as seen in the comparison chart.

You'll need to submit a loan application, which will be reviewed by a Southern Trust underwriter to determine your eligibility for a mortgage.

The approval process typically takes 2-4 weeks, depending on the complexity of your application and the availability of documentation.

If your application is approved, you'll receive a pre-approval letter outlining the terms of your loan, including the interest rate and loan amount.

Worth a look: Mortgage Application Volume Bounced Back Last Week as Rates Dropped.

Southern Trust Mortgage's average interest rate for loans in 2023 was 6.68%, with the most frequently originated rate bucket being 6-7%, accounting for 1,125 originations. This rate bucket had a total value of $343,365,000 and an average loan of $305,213.

You can choose to lock in your interest rate or float it, depending on your risk tolerance and market predictions. If you lock in, you'll be guaranteed a specific rate for a certain period, but if you float, your rate may go up or down with the market. Typically, loan terms of 15 years have lower interest rates than 30-year terms.

Some people choose to float their interest rate, taking on the risk that it may go up before closing on their loan, in order to potentially take advantage of a lower rate if it falls. However, it's essential to consider your loan's closing timeline and whether you can afford the potential increase in interest rate.

Related reading: Mortgage Rates Lock or Float

APRs can be misleading, as they don't include all closing fees and lenders are allowed to interpret which fees to include.

The APR is an effective interest rate, not the actual interest rate, which means your monthly payments will be based on the actual interest rate, the amount you borrow, and the term of your loan.

You should not depend solely on the APR in choosing the loan program that's best for you, as it may not accurately reflect the total cost of the loan.

For adjustable rate mortgages, the APR can be even more confusing, as assumptions must be made regarding future rate adjustments that may not actually occur.

The Federal Truth in Lending law requires that financial institutions disclose the APR when advertising a rate, but it's still a good idea to look at total fees and possible rate adjustments in the future when comparing loan options.

Here's an interesting read: Mortgage Loans Based on Bank Statements Not Taxes

Southern Trust Mortgage has a below average pick rate, which means they may not be the best choice for everyone. Unfortunately, this doesn't give us a clear idea of what makes them less competitive.

The pick rate is an important factor to consider when choosing a mortgage lender. It can affect the overall cost and terms of your loan.

You can lock in your interest rate during the mortgage process, which guarantees that rate on your loan for a specific period of time. This period is usually 30, 45, or 60 days.

Locking in your rate means you're protected from rising interest rates, but you also can't take advantage of falling rates. It's like buying insurance for your rate.

If you lock in your rate, your loan must close and disburse within the specified lock period, or you may be charged an upfront fee. The lock period is confirmed by your Mortgage Loan Officer, who will also notify you when you're able to request a lock.

Some people choose to float their interest rate, which means it will go up and down with the market. This option is riskier, but it could pay off if rates drop before you close on your loan.

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're refinancing, your loan could close within 30 days, unless you have secondary financing that needs to be paid off.

Consider reading: Will Mortgage Rates Drop after Election