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Choosing a Home Finance Solution

Whether you plan to purchase, build, renovate or refinance, it is important to understand the wide range of finance options available because each has unique benefits.

First Mortgage

Choosing a Home Finance Solution

If you are purchasing a home and prefer a monthly payment that will not change over the life of the loan, consider a conventional/fixed rate mortgage.

Choose an adjustable rate mortgage (ARM) if you are comfortable with a rate and payment that may increase or decrease over the life of the loan.

First time homebuyers or buyers who require a more affordable option may qualify for assistance through programs offered by their bank or through the U.S. government. Government mortgage programs have eligibility, income and/or credit requirements. For example, Federal Housing Administration (FHA), Veterans Affairs (VA) and U.S. Department of Agriculture (USDA) loans typically require lower down payments.

New Construction and Home Renovation Loans

A single-close new construction loan may be an ideal choice if you are building a home. Once the house is built, the construction loan automatically switches to permanent financing and you only pay a single set of settlement fees. Additional features include interest-only payments during construction.

A home renovation loan is available for a new house that you are purchasing or if you need to borrow money to fund major improvements to your existing home. Financing is based upon the after-improved value of the home.

Rate and Term and Cash-Out Refinance

As mortgage rates fluctuate over time, refinancing options enable you to lock in lower interest rates. With a rate and term refinance, this can result in lower monthly payments, shorter repayment terms and significant savings over the life of the loan.

Cash-out refinancing allows you to make the most of the equity you have built up in your home by making payments over time. With a cash-out refinance, you pay off your existing mortgage and take out a new one for more than you owed on the previous loan. You may keep the difference in cash that can be used for home improvements, to consolidate debt or pay for other expenses.

Home Equity Installment Loan (HEIL)

If you know exactly how much money you need to borrow for a financial goal or renovation project, or if you want to refinance your first mortgage with a fixed rate and monthly payment, a home equity installment loan is a good choice. When you close on the loan, you walk away with a lump sum cash disbursement to pay back in installments.

Home Equity Line of Credit (HELOC)

A HELOC uses your home as collateral, has a variable interest rate and allows you to access the funds up to the amount that you have been approved to borrow as you need them. The credit becomes available again when you repay the funds that you have used.

A HELOC is often a better fit if you want flexible access to your credit and are comfortable paying an annual fee, or if your financial needs will be spread over time, such as to pay for college tuition or a long-term renovation project.


There are several home finance solutions available. Talk with a trusted banker to assess all of your financial needs and determine your best option.

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