Types of Loans

Hybrid ARM (5/1 ARM, 7/1 ARM, 10/1 ARM)

These increasingly popular ARMS—also called 5/1, 7/1 or 10/1—can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a “5/1 loan” has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It’s a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.

30-Year Fixed Rate Mortgage

The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change.  It is important to note that this product has a 10 year call feature.  This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.

15-Year Fixed Rate Mortgage

This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate—and you’ll own your home twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn’t that great.

Jumbo Mortgage

Jumbo mortgages are loans which exceed limits set by Fannie Mae and Freddie Mac.  As of 2015, the limit for much of the country is $417,000.  In higher cost markets, loan limits can be as high as $721,050 for a single unit home (duplexes and triplexes have higher limits).  Since these loans cannot be purchased by the two government- sponsored enterprises, jumbo mortgages can be more costly and deemed to be more risky for lenders to originate making the interest rates higher than those of smaller loan amounts.  At Eastern Savings Bank we offer jumbo loans up to $3 million (call for higher loan amounts).  Our rates are competitive due to expertise and resources.  Higher jumbo loan amounts may be available.   So, if you’re looking for a jumbo mortgage it is important that you speak with a mortgage professional regarding your specific situation and your overall mortgage needs.

Commercial Loan

A commercial mortgage is a loan secured by a commercial property, such as an office building, shopping center, industrial warehouse, or apartment complex.  The proceeds from a commercial mortgage are typically used to acquire, refinance, or redevelop commercial property.  At Eastern Savings Bank we have the resources and the knowledge to help you with your commercial mortgage needs.  Providing funding for retail, mixed-use, multi-family, developed land, single family construction, and investor purchases and rehabs.