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Loan Programs

What’s the absolute best loan to choose? Home Savings of America’s Community Bankers say there isn’t a single or simple answer to this question. The right type of mortgage for you depends on many different factors:

Your current financial picture
How you expect your finances to change
How long you intend to keep your house
How comfortable you are with your mortgage payment changing

Hudson Valley Loan Programs For example, a 15-year fixed rate mortgage can save you many thousands of dollars in interest payments over the life of the loan, but your monthly payments will be higher. An adjustable rate mortgage may get you started with a lower monthly payment than a fixed rate mortgage, but your payments could get higher when the interest rate changes.

The best way to find the “right” answer is to discuss your finances, your plans and financial prospects, and your preferences frankly with your Home Savings Community Banker.

Listed below are a few of the Loan Programs available in Hudson Valley:

Fixed Rate Mortgages

A loan program where your monthly principal and interest payments never change.

Adjustable Rate Mortgages (ARMs)

These loans generally begin with an interest rate that is 2-3 percent below a comparable fixed rate mortgage, and could allow you to buy a more expensive home, say Home Savings of America’s Community Bankers.

Introductory Rate ARMs

Most adjustable rate loans (ARMs) have a low introductory rate or start rate, some times as much as 5% below the current market rate of a fixed loan.

Standard ARMs and the Differences

Various types of adjustable rate mortgages.

Cost of Funds Index (COFI)

This index is used to determine the interest rate for some types of ARMs.

Balloon Mortgages

Balloon loans are short term mortgages that have some features of a fixed rate mortgage.

Interest Only Loans

“Interest only” products are an easy way to save money and a very popular alternative to traditional fixed rates but they are not without risk. An “Interest Only” loan can offer consumers greater purchasing power, increased cash flow and a number of other benefits which are listed later in this article.