Types of Loans
Item one is determining which type of loan best suits your lifestyle and your financial situation. We offer a number of options.

Fixed Rate Mortgage
A fixed rate mortgage is a conventional loan featuring an interest rate that remains constant for the length of the mortgage. Fixed rate loans are typically packaged as 15 or 30-year terms. The advantage to the borrower is that the monthly payment will remain the same for the life of the loan. The initial rate on fixed rate loans is usually higher than the initial rate on adjustable or balloon mortgages.

Adjustable Rate Mortgage (ARM)
An adjustable rate mortgage (often called an "ARM") is also a conventional loan, but one that offers an initial interest rate and monthly payment that are "fixed" for a short period of time (such as 3 to 5 years).

The advantage to the borrower is that the initial rate is usually lower than a fixed rate mortgage. The monthly payment will be lower. However, as market conditions change, the rate, and therefore the monthly payment, can increase. (There are specific limits that vary from loan to loan.)

Construction Loans
A construction loan is a short-term, adjustable rate loan used during the construction of a building or home, usually six to twelve months. Funds are disbursed in stages, according to completed phases of the building project. The benefit to choosing and closing on a construction loan, then entering into a permanent mortgage loan after construction, is that you pay interest only on the amount of money drawn out during construction. We also offer combination construction/permanent loans, which feature one closing for land, construction and the permanent home loan, as opposed to two separate closings.

Portfolio Loans
For borrowers who may not quality for conventional mortgage loans, the Countybank mortgage team can often develop custom mortgage programs with alternative lending structures, known as portfolio loans. Simply contact a Countybank mortgage officer to learn more.