Whether you’re buying or building your new home, looking to refinance or cash out equity in your existing home, or want to establish a home equity line of credit, Exchange Bank of Northeast Missouri has the right financing options for you and the expert guidance to help you through the process.
Our experienced lenders can design the program that best fits your needs and will provide you the personalized customer service you deserve! Contact our mortgage lending specialist at the location nearest you to see how we might help you move to the home of your dreams.
Whether you’re building or buying, Exchange Bank of Northeast Missouri offers a wide variety of mortgage loan products to meet your needs. From conventional loans to construction and permanent loans, we will strive to find the right product for each customer.
Fixed Rate Mortgages
With a fixed rate mortgage (FRM) loan the interest rate and your monthly mortgage payments remain fixed for the period of the loan. Fixed-rate mortgages are available for 30, 20 and 15 year periods. Generally, the shorter the term of a loan, the lower the interest rate. For more information on this mortgage loan product, contact a Mortgage Loan Originator at any Exchange Bank of Northeast Missouri branch.
Adjustable Rate Mortgage (ARM) Loans
A variable or adjustable rate mortgage is a loan whose interest rate, and accordingly, the monthly payments fluctuate over the period of the loan. With this type of mortgage, periodic adjustments based on changes in a defined index are made to the interest rate. The index for your particular loan is established at the time of application. The ARM mortgage product has interest rate caps to protect you from enormous increases in monthly payments. A lifetime cap limits the interest rate increase over the life of the loan. A periodic or adjustment cap limits how much your interest rate can rise at one time.
ARMs can be an excellent choice of financing under certain conditions, such as rising income expectations, high interest rates, and short-term home ownership. For more information on this mortgage loan product, contact a Mortgage Loan Originator at any Exchange Bank of Northeast Missouri branch.
Please visit the Federal Reserve Bank’s website for more information about ARMs:
Balloon Mortgages are short-term fixed rate loans (3 or 5 years) that have fixed monthly payments based over a 20-25 year fully amortizing schedule and a lump sum payment at the end of its term. At the end of the term period you will have to come up with a lump sum to pay off your mortgage balance, either through a refinance or from your own savings. For more information on this mortgage loan product, contact a Mortgage Loan Originator at any Exchange Bank of Northeast Missouri branch.
Bridge Mortgages are generally short term loans (6 months or less) that allows the borrower to cash out equity in their existing home ( which is for sale or sold but sale not complete) in order to purchase a new home. Once the sale of the existing home is complete, the bridge mortgage is paid in full by the sale proceeds. For more information on this mortgage loan product, contact a Mortgage Loan Originator at any Exchange Bank of Northeast Missouri branch.
- You want to buy a new home but need to sell your current home
- You have equity in an existing home to apply toward the purchase of a new home
A Construction loan is a loan structured as a closed-end line of credit with interest only payments, keeping your monthly payments as low as possible. The term of the loan is usually 6 months and you may borrow up to 80% of the costs associated with building your new home or large home improvement projects. Upon completion of your construction project, the construction loan is paid in full typically through a refinance in to a permanent mortgage loan product. For more information on this mortgage loan product, contact a Mortgage Loan Originator at any Exchange Bank of Northeast Missouri branch.
Lot loans are available to borrowers that wish to purchase land, whether building now or in the future. We offer loan terms up to 20 years, with a 25% down payment. For more information on this mortgage loan product, contact a Mortgage Loan Originator at any Exchange Bank of Northeast Missouri branch.
A home equity loan is a type of loan in which the borrower uses the equity of their home as collateral. Home equity loans are often used to finance major expenses such as home repairs, medical bills, or college education. A home equity loan creates a lien against the borrower’s house and reduces actual home equity. A Closed End Home Equity Loan is a onetime lump-sum loan, with a variable interest rate and monthly principal and interest payments based on an amortization.
There is a specific difference between a home equity loan and a home equity line of credit (HELOC). A HELOC is a line of revolving credit, with an adjustable interest rate based on the Wall Street Journal’s Prime Rate of Interest plus a .75% margin, with rate caps and lifetime caps on adjustments. HELOC repayment terms are 10 years and require 1% of the outstanding principal plus accrued interest payments monthly. The borrower can choose when and how often to borrow against the equity in the property, with the lender setting an initial limit to the credit line based on criteria similar to those used for closed-end loans.
Exchange Bank of Northeast Missouri offers both types of Home equity loans: closed end (traditionally just called a home-equity loan) and open end (a/k/a home equity line of credit). Both are usually referred to as second mortgages, because they are secured against the value of the property, just like a traditional mortgage. Home equity loans and home equity lines of credit are usually, but not always, for a shorter term than first mortgages. For more information on this mortgage loan product, contact a Mortgage Loan Originator at any Exchange Bank of Northeast Missouri branch.
Please visit the Federal Reserve Bank’s website for more information about HELOCs: http://files.consumerfinance.gov/f/201204_CFPB_HELOC-brochure.pdf
Exchange Bank of Northeast Missouri can help with all your personal financing needs. Whether you’re purchasing a vehicle, consolidating debt, planning a vacation or need to finance other important events in your life, our trained Loan Officers will offer the personalized service you deserve and flexible terms to meet your needs. For more information on other personal loan products, contact a Mortgage Loan Originator at any Exchange Bank of Northeast Missouri branch.
All loans are subject to the bank’s normal income and credit requirements. Actual terms and conditions may vary.