Mortgages and Home Equity
Because every customer is different, we provide a large variety of customized home loan programs including refinance and home purchase options.
Our loan officers are specially trained to meet your individual needs, so you are able to achieve your financial goals. When you fill out an application, your Loan Officer meets with you one-on-one. That way you'll get to know us, and we'll get to know you. Then your Loan Officer can work effectively with you to design a program best suited to meet your specific financial needs.
In this section, you'll find definitions of many types of home loans. To determine the best kind of loan for your unique needs, be sure to discuss your home loan options with one of our loan officers.
Fixed Rate Mortgage
With a fixed rate mortgage, you know exactly what your principal and interest payment will be each month for the life of your loan. It won't change because your interest rate doesn't change. Your taxes and insurance component of your payment towards escrow can change (and probably will) if your taxes and insurance change. Unfortunately, there's no way to lock those in. If interest rates go up, you're protected with a fixed rate mortgage. But, you won't benefit if rates go down. You can always take advantage of falling rates by refinancing.
Fixed rate mortgages might be right for you if:
- Want the security of a fixed principal and interest payment.
- Think that interest rates will go up.
- Are on a fixed or limited budget.
Adjustable Rate Mortgage (ARM)
Compared to fixed rate mortgages, Adjustable Rate Mortgages (ARMs) offer a lower interest rate to start, so your monthly payments are generally lower. But, the interest rate moves up and down with the market based on an "index". Some of the more common indices include U.S. Treasury Bills, Cost of Funds Index (COFI) and the London Interbank Offered Rate (LIBOR). Most ARMs have an initial fixed rate period where the interest rate doesn't change followed by the rest of the loan's lifetime period where the rate is adjusted at predetermined intervals. Many ARMs have caps that limit how much your interest rate can change per period as well as for the life of the loan.
Also be aware that there are some very low rates ARMs that start out with "discounted" rates. These discounted rates are below the market rate and will definitely go up at the first adjustment period.
Adjustable rate mortgages might be right for you if:
- You want more property than you can qualify for now with a fixed rate.
- You are confident your income will increase or rates will not go up much.
- You plan on selling or refinancing within a few years of buying your home.
Refinancing may be for you if you have an ARM and want to lock in a good fixed rate. Tap into your home equity with a cash out option to finance that home improvement project or any financial need that you have. Do you have a mortgage with a high fixed rate? Refinancing at today's low rates is just the solution.
Home Equity Line Of Credit (HELOC)
This is perfect for tapping into your home equity with flexible options. This line of credit will let you write checks when you need to, with a preset limit. This helps you finance your projects on your schedule.
Construction loans are used to finance the building of a new home rather than purchase an existing home. They are usually variable-rate loans that have interest only payments during the construction phase. Draws are scheduled based on the stages of construction to pay the builders.
Many construction loans are construction-to-permanent which means that when construction is complete, the loan is converted to a normal mortgage. This has the advantage of a single loan with one closing.