TYPES OF MORTGAGES

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CONVENTIONAL

TERMS: 15, 20 , 30 YEARS

Best For:

  • Long term ownership
  • When you expect to stay in the home for many years

Features:

  • Long term ownership
  • When you expect to stay in the home for many years

Benefits:

  • Interest is fixed for the life of the loan
  • Payments become a smaller part of your budget as your income increases

ARMS (ADJUSTABLE RATE)

TERMS: 1 to 10 YEARS

Best For:

  • When you are buying a starter home that you plan to sell within a set time
  • The adjustable time period will determine how much cheaper the rate will be from a conventional mortgage
  • Stable interest rate environment

Features:

  • Usually has a lower rate than conventional mortgages
  • The shorter the time period the lower the rate will be for a fixed time before the rate adjusts
  • When rates don’t change much, you don’t have to worry about increases

Benefits:

  • Payments are fixed for a set time then can adjust if rates increase after the rate period has expired
  • Generally the amount the mortgage rate can adjust is known in a rising interest environment
  • Lower overall costs if you can plan when you will sell your home

1st TIME HOMEBUYERS

TERMS: 15, 20, 30 YEARS

Best For:

  • First-time home buyers, retirees
  • Families in underserved areas
  • Low-income borrowers

Features:

  • Purchase and no cash out refinancing
  • Manual underwriting
  • No reserves required for single-unit properties

Benefits:

  • Flexible sources of funds
  • Reduced mortgage insurance coverage levels
  • Minimum down payment of 3 percent

HOME RENOVATION

TERMS: 15, 20, 30 YEARS

Best For:

  • Refinancing an existing home mortgage or rehabilitating a home that needs work
  • Works based on plans you develop with an architect

Features:

  • Allows you to get a higher mortgage based on the completed value of the home after renovations
  • Mortgage company values the completed project and bases home value accordingly

Benefits:

  • Helps you get the money you need for a major renovation of a home
  • Tends to be a longer process but can be extremely worthwhile

203K REHABILITATION

TERMS: 15, 20, 30 YEARS

Best For:

  • Remodel or first-time home buyers
  • Easier requirements for Credit Score and income
  • Only available for primary residence
  • More paperwork may be involved

Features:

  • As low as 3% down payment
  • Designed to help lower income situations
  • Seller can contribute up to 6% of selling price
  • Requires more work to fill out government forms

Benefits:

  • Great for first time home buyer with smaller down payment
  • Allows home purchase with lower requirements
  • Excellent for sale from parents to children
  • Takes longer but could be very helpful in the right situation

CHFA – CT HOUSING AUTHORITY

TERMS: 15, 20, 30 YEARS

Best For:

  • Teachers and Municipal workers
  • Income Limits may apply
  • Check with us if you think you might be interested

Features:

  • Special Program for first time home buyers
  • Based on certain area of CT
  • Lower payments

Benefits:

  • Lower interest rates and down payment assistance
  • Can be very cost effective if you qualify
  • Designed to help first time CT buyers with home purchases