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Types of Mortgage Loans

Ensuring the Perfect Fit.

There are a lot of types of mortgages(1) out there, and not all mortgages are right for you. We encourage you to sit down and visit with one of our mortgage bankers before making one of the most important financial decisions of your life.

Fixed Rate Mortgage

The first choice of most mortgage customers, fixed-rate mortgages offer security and peace of mind by locking your mortgage interest rate for the entire term of your loan.  30-year fixed mortgage payments are the most common and affordable, but ask one of our home loan specialists to show you the difference in total interest by opting for a shorter-term fixed-rate mortgage loan like a 15-year or a 20-year.  The savings can be striking.

Adjustable Rate Mortgage

Adjustable Rate Mortgages (ARMs) often offer lower interest rates in exchange for an adjustable rate feature.  ARMs come with a variety of options, including some that have a fixed-period for 3, 5, 7, or 10 years before the rate starts to adjust.  While they are not right for every borrower, the interest saved with an ARM is attractive for borrowers who do not intend to keep their loan for a long period of time.

Construction to Permanent

Interested in building your own home? We’ll work with you from start to finish. With this type of mortgage, you pay interest on only the money you have borrowed to date as you go through the construction process.

We also make sure your permanent financing is at competitive rates, and we’ll happily assist you with the construction paperwork so you can focus on the important things like paint swatches and carpet samples. 

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First-Time Homebuyer Loan

This is a great mortgage loan program that offers low down payment options and reduced interest rates to help people buy their first home.  

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Rural Development Loan

This program may be one of the best-kept mortgage secrets out there.  It is available for qualified applicants with moderate income looking to purchase a home outside of major metropolitan areas.  It features a great interest rate, no mortgage insurance, and no down payment.  

To see if your income or a specific property is eligible, contact one of our mortgage bankers today.

Veterans Administration (VA) Insured Loan

This type of loan is available to qualified veterans or their widows or widowers who have not remarried. VA-insured mortgage loans have reduced interest rates, reduced closing costs, and often do not require a down payment.

To see if you are eligible, contact one of our home loan experts today.

Federal Housing Authority (FHA) Insured Loan

Insured by the Federal Housing Administration, this is a great loan for homebuyers with limited savings and low to moderate income. It features a low down payment—and the down payment can be a gift, a grant, or a secured loan.

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Home Equity Line of Credit (HELOC)

If you own your home, you have buying power. Use the equity you’ve established to help pay for unexpected expenses or short-term financial needs with a home equity line of credit (also called a “HELOC”).

This flexible financing tool is a revolving line of credit, so it works like a credit card.  The interest rate will adjust with the prime lending rate, but the monthly payments often only require accrued interest to be paid.  And since the loan is tied to the equity you have in your home, the interest you pay may be tax deductible.  Be sure to consult with your tax advisor for eligibility.

Home Equity Loan

You can use the equity on your home to borrow money to pay for home improvements, medical expenses, vehicles and other financial needs.

A home equity loan, also called a “second mortgage” since it’s secured against the value of your home, is different from a HELOC in that you will receive the full amount of the loan in a one-time lump sum at closing.

Both home equity loans and HELOCs use the equity in your home as collateral, but Home Equity Loans are fixed-rate loans with a fixed payment schedule, similar to a car loan or a first mortgage.

Let's Talk

Overwhelmed? Or just not sure which type of mortgage is right for you? Just give us a call at (605) 330-0133 or contact us online and we’ll be happy to help you.

(1) All credit and loan products are subject to credit approval. Loan programs subject to qualification.

Note: It is our policy not to accept mortgage loan applications from individuals or businesses located outside of our trade area unless the applicant is a present customer or has made prior arrangements with a bank officer. If you are outside of our area and would like us to consider your mortgage loan application, please contact us.