Month: December 2024

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Blog Business

Beneficial Ownership: A Timely Reminder for Businesses

As we approach 2025, it’s important for businesses to stay on top of compliance with beneficial ownership information (BOI) reporting requirements established by the Corporate Transparency Act. These regulations, introduced by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), took effect earlier this year and are crucial for enhancing transparency and combatting financial fraud.

Who Needs to Report?

The BOI reporting mandate applies to specific business entities, including:

  1. Corporations
  2. Limited liability companies (LLCs)
  3. Entities created in the U.S. by filing with a secretary of state or similar office
  4. Foreign companies registered to do business in the U.S.

Are there Exemptions?

Yes—23 types of entities are exempt from BOI reporting, including publicly traded companies, nonprofits, and certain large operating companies. Understanding whether your business qualifies for an exemption is essential to ensuring compliance.

Filing Timeline for New Entities

Businesses created or registered in 2025 will have 90 calendar days from the effective date of creation or registration to file their initial BOI reports. Staying ahead of this timeline is crucial to avoid penalties.

Resources to Simplify the Process

Navigating BOI reporting doesn’t have to be overwhelming. FinCEN offers a detailed brochure that provides an overview of the requirements and a step-by-step guide to submitting your information:

Why This Matters

Reporting BOI fosters a more transparent and accountable business environment, aligning with efforts to prevent financial crimes. Make sure your business is compliant and protected.

We’re Here to Help

At Pinnacle Bank, we’re committed to informing our customers about important regulatory updates. If you have questions about BOI reporting or other compliance requirements, email us at customerservice@pinnaclebank.com, call 877.759.7939, or visit your nearest Pinnacle branch.

Find a Branch Near You

Let us guide you through these changes so your business can thrive.

Categories
Blog Home Buying & Refinancing

What You Need to Know About Mortgages

First-Time Homebuyer? Here’s What You Need to Know About Mortgages

Buying your first home is an exciting milestone! But the mortgage process can feel overwhelming if you’re not familiar with the basics. Let’s break down the essentials, so you’re prepared and confident as you take this big step.

1. Types of Mortgages

The first thing to know is that there are different types of mortgage loans, each with its own features and advantages.

Here’s a quick rundown of the most common ones:

Conventional Loans

These loans are not backed by the government and often require a higher credit score and down payment but may offer competitive interest rates.

FHA Loans

Backed by the Federal Housing Administration, FHA loans are more accessible to first-time buyers with lower credit scores and require a smaller down payment (as low as 3.5%).

VA Loans

For eligible veterans, active-duty military and certain members of the National Guard, VA loans require no down payment and offer favorable terms.

USDA Loans

Available for buyers in designated rural areas, USDA loans often require no down payment and have low-interest rates.

2. Down Payments

The down payment is the amount you pay upfront toward the cost of the home. A common misconception is that lenders require a 20% down payment, but in actuality many loan options require less:

3-5% Down

Some conventional and FHA loans allow for down payments as low as 3-5%.

0% Down

VA and USDA loans may require no down payment if you qualify.

While a larger down payment reduces the loan amount and often improves your loan terms, low down payment options make it possible to buy a home with less savings. And did you know that at Pinnacle Bank we offer additional 0% down option mortgage for certain homebuyers?

Contact your Pinnacle Bank mortgage professional today for additional details.

3. Loan Terms and Interest Rates

Mortgage terms define how long you’ll be paying back the loan. The most common loan terms are 15 and 30 years:

30-Year Fixed Rate

This is the most popular option, offering a predictable payment with a fixed interest rate for the entire term.

15-Year Fixed Rate

These loans have higher monthly payments but often come with a lower interest rate, meaning you’ll pay less over the life of the loan.

Adjustable-Rate Mortgages (ARMs)

With ARMs, the interest rate is fixed for an initial period (like 5 or 7 years) and then adjusts annually. These can be risky, as payments can increase when rates go up. Be sure to ask your mortgage  professional lots of questions to fully understand how an adjustable-rate mortgage works.

A Few Final Tips

Get Pre-Qualified

A mortgage pre-qualification gives you a clear idea of what you can afford and shows sellers you’re a serious buyer.

Budget for Closing Costs

Besides your down payment, anticipate paying closing costs. These are transaction costs associated with processing and closing the loan. These amounts can vary between loan programs and lending institutions so be sure to consult thoroughly with your lender on how much to budget for these costs.

Consider Your Long-Term Goals

Think about how long you plan to stay in the home, as this can affect your loan choice and term. A good mortgage lender can help guide and advise you which program is best suited for your long-term goals.

Arming yourself with this mortgage knowledge will make the process smoother and give you confidence as you start your home buying journey.

Happy house hunting!