Golf Savings Bank specializes in different types of loans. You'll find a detailed description for each below. To find out if you qualify, please contact one of our Mortgage Banker/Brokers.

        Conventional Loan
        FHA Loan
        VA Loan
        Second Mortgages
        Custom Construction Loans Homebuyer Guide

Conventional Loans - Apply Now

Loan Types

Most home loans fall into one of these two basic categories: fixed-rate and adjustable-rate mortgages (ARMs).

 

Fixed Rate Mortgages have interest rates that stay the same for the life of the loan.

-Predictable monthly payments throughout the life of the loan.

-Protection from rising rates - so principal and interest payments can never increase, regardless of interest rate increases.

 

Adjustable Rate Mortgages have interest rates that adjust periodically based on market conditions.

-The initial rate is fixed for an introductory period (up to ten years), and is typically lower than for a fixed-rate mortgage. After the initial fixed period, the rate adjusts periodically based on a market index, but cannot increase above predetermined adjustment caps or payment caps.

-Lower initial rates allow borrowers for a larger loan amount than with a fixed-rate mortgage.

 

Fixed-Rate Mortgages

The interest rate is set for the full term of the loan. Because the monthly payment for principal and interest remain constant for the life of the loan, it's easier to plan a budget.

 

Fixed-rate mortgages offer:

-Predictable payments. The monthly principal and interest payment is fixed over the life of the loan.

-Protection from rising interest rates. No matter how interest rates change , the mortgage rate remains the same over the life of the loan.

 

Best for people who:

-Prefer regular payments with no surprises

-Are on limited or fixed incomes

-Plan to stay in their homes a long time

-Are buying a home at a time when interest rates are comparatively low

 

Related Information:

Fixed-rate loans backed by government agencies (such as FHA and VA mortgages). (Link "Government" to FHA VA Pages)

 

 

Adjustable Rate Mortgages

An adjustable-rate mortgage (ARM) has an interest rate that is fixed up to 10 years and then adjusts periodically based on financial market conditions.

 

During the initial fixed period, an ARM has a lower interest rate than a comparable fixed-rate mortgage, so the borrower saves on monthly payments during the early years of their loan term.

 

Because it offers lower upfront monthly payments, an ARM can help:

Buy a more expensive home. Because the maximum loan amount is based on the initial monthly payments and allows a person to borrow more.

Manage cash flow in a high-rate environment. If buying a home at a time when interest rates are comparatively high, an ARM can delay making high monthly payments right away.

Plan for future income growth. An ARM can help keep payments low while income increases during the loan's fixed period.

Potentially improve credit standing. The lower initial rate can make payments easier to manage, helping improve credit and expand financing opportunities assuming timely payments on the mortgage loan and other credit obligations.

Save money if expectation to move or refinance. If planning to move or refinance before the end of the loan's initial fixed period, take advantage of an ARM's lower payments without worrying about future rate increases.

 

After the initial fixed-rate period, the remainder of the loan term is divided into adjustment periods of typically one year or six months, depending on the ARM product you choose. At the end of each adjustment period, the interest rate may change based on the loan's:

 

Index: The interest rate on a publicly traded debt security that is used to calculate the interest rate on an ARM. Popular indexes for ARM loans are the one-year U.S. Treasury security and the London Inter-Bank Offered Rate (LIBOR).

Margin: A fixed percentage (usually two to three percent) that is added to the index at each adjustment period to determine the loan's new rate.

Rate Cap: Typically the maximum amount your interest rate can increase or decrease at each adjustment period and over the life of the loan. This protects you from severe increases in interest rates.

 

 

ARM Options

Fixed Period ARMs: ARM loans that have an initial fixed-rate period of more than a year are often called fixed period ARMs. A 5/1 ARM, for example, offers the security of a fixed-rate loan through the first five years. Beginning with the sixth year, the rate is subject to annual adjustments through the remaining 25 years of the loan's term.

 

Because they offer lower rates than comparable fixed-rate loans, fixed period ARMs can be a good choice if planning on moving or refinancing before the initial-rate period expires. Golf Savings Bank offers 1 month, 3 month, 3 year, 5 year 7year, and 10 year ARMs, all of which come with a 30-year term

Interest-only loans: On selected loans lower payments even further by using the interest-only payment option. This feature requires no principal payment for the initial fixed-rate period. Repayment of the loan principal begins after a set period of time depending on the loan program. Many programs allow for an interst only term of up to 10 years.

Related Information: Adjustable-rate loans backed by government agencies (such as FHA and VA mortgages).

 

 

Loan Terms

The "term" of a loan is the length of time over which you agree to repay the loan. The most common mortgage loan term is 30 years, but 15- and 20-year mortgages are also common.

Determining whether a longer-term loan or a shorter-term loan is better depends on a number of factors, most notably monthly income and long-term financial goals. Comparing two fixed-rate loans with different terms:

The longer-term loan offers lower monthly payments. This may be a good option if on a tight budget or it's preferable to direct monthly cash flow toward other investments or expenses.

The shorter-term loan result in higher monthly payments, but repaying the loan faster thus saving money on interest paid.

 

 

Government Loans - Apply Now

The Federal Housing Administration (FHA) and the U.S. Department of Veterans Affairs (VA) offer government-insured loans. These loans have features that make them easier for first-time home buyers to obtain. These features include:

-Low down payments

-Flexible lending guidelines

To obtain an FHA or VA loan, apply through an approved lender like Golf Savings Bank. At every one of our branches, work directly with local loan experts experienced with these loans.

 

 

FHA Loans

The Federal Housing Administration (FHA) insures qualified loans offered by Golf Savings Bank to promote homeownership for those with:

-low- or moderate-income

-limited savings

 

FHA loan limits vary by county, with larger loan amounts allowed in areas with higher housing costs. Contact a Golf Savings Bank Mortgage consultant to see about FHA loan limits in your area.

FHA loan features include:

-Low down payment requirements

-Flexible income, debt, and credit requirements to help borrowers qualify

-Down payment and closing costs that may be funded by a gift, grant or secured loan

-A variety of fixed-rate and adjustable-rate loan options from Golf Savings Bank (link "fixed-rate" and adjustable-rate" to conventional page)

 

 

VA Loans

The Department of Veterans Affairs (VA) guarantees loans offered by Golf Savings Bank to help qualified veterans, reservists, and active-duty service members1 to finance their homes. VA loans are suited for veterans with:

-low- or moderate-income

-limited savings

 

VA loans offer these features:

-A no down payment option

-Flexible income, debt and credit requirements to help borrowers qualify

-Down payment and closing costs that may be funded by a gift, grant or secured loan

-A variety of fixed-rate and adjustable-rate loan options from Golf Savings Bank (link "fixed-rate" and adjustable-rate" to conventional page)

Check with your regional VA office to determine your eligibility.