Ready to make your move?

The first step is understanding your mortgage options.  Let's look closer at the loan types we have available:

Fixed Rate Mortgages

Fixed rate mortgages offer the stability of monthly payments in a variety of terms.  This type of loan is an excellent option if you expect interest rates to rise in the future or plan to stay in your home for an extended period of time.

When considering a Fixed Rate Mortgage, consider these factors:

• The longer the term of the loan, the higher the overall interest you pay
• Monthly payments are typically higher on shorter term loans than longer term loans
• The shorter the term, the faster you build equity in your new home

Adjustable Rate Mortgages (ARM)

An adjustable rate mortgage is an option worth considering if you plan to be in your home for a relatively short time and expect mortgage rates to decrease after your initial fixed rate period is complete.  This type of loan is popular because payments and interest rates initially may be lower and you may qualify for a higher mortgage loan amount.  Your initial interest rate can be fixed for a set period of time, while your mortgage payments are calculated on a variety of terms.  An ARM is a good choice if you expect a possible increase in future income or net worth.

When considering an Adjustable Rate Mortgage (ARM), remember these factors:

• Your interest rate will rise and fall with the market.  This means your monthly payments will change depending on the market interest rate at the time of your rate adjustment.
• After your initial rate period, your rate for the loan will fluctuate to the index rate.  The lender adds the index rate to the margin to calculate your mortgage rate at each adjustment.
• Adjustable rate mortgages do offer safeguards called "caps" that set pre-determined limits on how high your mortgage rate can rise.  A cap limits the maximum your payment will increase at each interest rate adjustment and over the life of the loan.

First-Time Homebuyer Mortgage Programs

Peoples Exchange Bank has teamed up with partners to offer enhanced affordable lending products designed to help meet the diverse needs of today's buyers.

VA Loans

If you are an eligible service member, including active duty personnel, reservist, veteran or eligible family member, VA loans are an excellent option, providing up to 100% financing.

When considering a VA Loan, you can benefit from:

• Low to no down payment
• No MMI (monthly mortgage insurance) or PMI (private mortgage insurance) is required
• More flexible income, debt and credit requirements
• VA loans offer more flexible gift guidelines; your down payment or closing cost may come from a gift or grant
• Allows for the seller to pay all closing costs and prepaids for the Veteran up to 6% on a 100% loan
• VA loan programs are available in a variety of loan terms

FHA Loans

Offered through the Federal Housing Administration, an FHA loan is an affordable option when you're looking to get into a home with a smaller down payment, lower closing costs and with limited credit reporting to credit agencies.

When selecting an FHA Loan, keep these factors in mind:

• FHA loans have lower down payment options
• Loans are available in a variety of loan terms, and are offered in fixed rate programs or ARM programs
• An FHA loan requires government-sponsored mortgage insurance called monthly mortgage insurance (MMI)
• This type of loan allows for more flexibility in income, debt and credit requirements
• Your down payment and closing costs may come from a gift or grant

USDA Rural Housing Loans

USDA loans are an excellent option for a homebuyer looking to purchase a home in a rural area and may have less cash available up front for down payment and closing costs.  USDA loans are available from the United States Department of Agriculture Rural Development Department.

When considering a USDA Loan, keep these factors in mind:

• The loan amount can be up to 100% of the appraised value of the home
• The seller may pay up to 6% towards closing costs and prepaid items
• A USDA loan requires a one-time Guarantee Fee that may be financed into the loan
• This type of loan requires a reduced monthly MMI (monthly mortgage insurance)
• A USDA loan has income limits and property location restrictions

Land Loans

Often, the dream of buying a home starts with the thought of where to live.  Whether you are building in 10 years or next month, once you've found the perfect 'forever' spot, you can't help but dream.  Many real estate transactions start with a lot purchase.  Lot loans are often rolled into your new construction loan once you are ready to build.

Reasons to consider a Lot Loan:

• Easy way to purchase the land if construction is not going to occur immediately
• Land loan can be part of a construction loan if construction is imminent
• Loan value up to 75% on land!

Mortgage Refinance

A mortgage refinance is the replacement of an existing mortgage with another mortgage under different terms.  Mortgage refinancing can lower your monthly payments, which can add up to significant savings. 

Reasons to consider a Mortgage Refinance:

• Reduce your monthly mortgage payment
• Consolidate high interest debt with a low mortgage rate
• Pay off your mortgage faster

Construction Loans

This loan program allows for the construction of a primary residence.  During the construction phase, the minimum monthly payment is interest-only for the amount drawn on the construction loan.  

If choosing a Construction Loan, consider the following:

• Loan requires a licensed contractor to conduct and oversee the construction project
• Loan can be up to 85% of the cost to construct or 85% of the appraised value of the completed project, the lesser of the two
• The construction site must be in Peoples Exchange Bank's service area

 

*All loans are subject to credit approval.  Peoples Exchange Bank is an Equal Housing Lender.