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Types of Home Loans

Thirty-Year Fixed Rate Mortgage
The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.

Fifteen-Year Fixed Rate Mortgage
This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate—and you'll own your home twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn't that great.

Adjustable Rate Mortgages (ARM)
When it comes to ARMs there's a basic rule to remember...the longer you ask the lender to charge you a specific rate, the more expensive the loan.

VA Loan
The Department of Veterans Affairs provides a home loan guaranty benefit and other housing-related programs to help purchase or refinance homes for primary occupancy.  Service members, Veterans, and eligible surviving spouses may be eligible under this program.  Suitable credit, sufficient income, and a valid Certificate of Eligibility (COE) are required to be eligible for a VA-guaranteed home loan. The home must be for primary occupancy.

Maine State Housing Authority (MSHA)
The Maine State Housing Authority provides low fixed rate mortgages and other assistance to help make homeownership affordable for more Maine people. No point and low point options are available. MSHA offers options with little or no down payment required, though if you still need help with the cash required for closing, they also offer down payment and closing cost assistance. MSHA mortgages even come with payment protection for unemployment.

The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders to include Purchases, Rate and Term and Cash Out Refinances. FHA provides lower down payment requirements than conventional loans on single family and multi-family homes in the United States and its territories.  FHA lending limits vary based on a variety of housing types and the state and county in which the property is located.

Rural Development
Rural Development loans are primarily used to help low to moderate income individuals or households purchase homes in rural areas.  Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.  In addition, applicants must have reasonable credit histories.

Bangor Savings Construction Loans
We offer single close construction loans for borrowers who wish to build their home.  The unique characteristics of a construction loan require additional underwriting and administration. Prior to closing, a construction loan requires receipt and review of a construction contract/construction budget signed by the borrower and the general contractor.

Bangor Savings Bank NMLS #449200
PO Box 930, Bangor, ME  04402
Toll Free:  (877) 226-4671
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