The Commercial Bank offers a variety of mortgage programs with competitive rates and terms. The mortgage programs offered at The Commercial Bank are:
- Fixed rate mortgages
- Short-term balloon mortgages
- Adjustable rate mortgages (ARM’s)
- Second Mortgages
A fixed rate mortgage is a mortgage in which the interest rate does not change during the entire term of the loan. The advantage of a fixed rate mortgage is that the interest rate will not increase. The disadvantage of a fixed rate mortgage occurs when interest rates drop substantially lower than your existing rate.
A short-term fixed rate mortgage, which involves small payments for a certain period of time and one large payment for the remaining amount of the principal at a time specified in the contract. The advantage of this type of loan is that the initial rate is usually lower than a normal fixed rate loan. The disadvantage of a balloon mortgage is that you may have to refinance or payoff the loan when the note matures. The interest rates at that time may be substantially higher.
Most adjustable rate mortgages have caps on how much the interest may increase or decrease. The initial rate is fixed for a specified period and thereafter has an adjustment interval of one year. The advantage of an adjustable rate mortgage is that the initial rate is usually lower than a traditional fixed rate mortgage. Also, the interest rate changes up or down depending on the financial conditions of the economy. This can be an advantage if interest rates remain the same or if there is a decline in the interest rates. The disadvantage of this type of loan is that the interest rate may increase.
A second mortgage is a second loan on the same property and home that is secured by a first mortgage loan. The interest you pay on a second mortgage may be tax-deductible. (Consult your tax advisor to find out if you qualify for this deduction).
Build the home of your dreams with a construction loan from The Commercial Bank. We make the process simple and easy, once the home is near completion we will help you roll the loan over into permanent financing.
All loans are subject to credit approval, acceptable collateral and available equity.