- Mortgages
- Fixed Rate Mortgage Loans
- Adjustable Rate Mortgages
- Construction Loans
- First Time Home Buyer Options
- Low Down Payment/No Down Payment Options
Just as shopping for a home includes the evaluation of many different home styles and options, finding the right mortgage product is just as important. First Federal Bank lenders will provide you with professionalism and experience while offering you competitive interest rates and outstanding, local service. Our job begins with fully understanding your needs and both your short and long term goals. We will discuss various options with you to determine what type of financing is ideal for your situation. We then evaluate the market and all of our current products, rates and underwriting guidelines to find the very best loan product for your needs.
It wasn't long ago that a 30 year fixed rate mortgage was your primary option. Today, many popular loan programs exist. We have provided the descriptions of the basic loan programs available to help you understand the benefits and drawbacks of each of the various types of mortgages. And don't forget that First Federal Bank can provide you with a Free Pre-Qualification Analysis so you'll know the amount of loan you'll qualify for before you go house hunting.
The following factors should be considered when evaluating loan programs:
- How important monthly payment stability is to you.
- Your ability to qualify at market rates for the loan amount selected.
- How long you plan to stay in the home.
- Expectation of stable versus rising or declining income.
- Level of current market rates - high versus low.
- Possibility of significant rate changes.
- Existence of up-front costs.
- Your desire for rapid home equity build-up.
A fixed-rate mortgage has a fixed interest rate, fixed, equal monthly payments, and is fully amortizing over the term of the loan. A portion of each monthly payment covers the interest due on the loan. The remaining portion is applied toward the reduction of the principal balance. Regular payments systematically reduce the loan balance until the loan is paid in full.
The standard fixed-rate mortgage is still the most popular mortgage loan type and may be the best mortgage option for you if you:
- Like a consistent payment amount to allow for easier budgeting
- Do not like the risk of fluctuating interest rates
- Like the idea of flexibility in the size of the monthly mortgage payment as well as how quickly the principal balance can be paid down. Shorter terms carry lower interest rates and higher monthly payments. Longer terms have smaller monthly payments and may be easier to budget.
- Are interested in a bi-weekly payment option that can reduce the principal balance of your loan quicker.
Adjustable-rate mortgages (ARMs) have fluctuating interest rates that rise and fall with economic factors allowing the potential for changing payment amounts. ARMs often have substantially lower initial interest rates than the rate for fixed-rate loans. An Adjustable Rate Mortgage may be ideal for you if you are:
- Looking for lower payments at the beginning of your loan to help you borrow more
- Planning to move within a few years
- Confident your income will keep pace with the rate adjustments
You have more to worry about when building your home than which construction loan is best for you. Our lenders will help you choose which of our two construction loans best meets your financial needs:
Construction Conversion Mortgage:
For new construction homes with multiple payments to the builder during construction, and you make interest-only payments during the construction period.
Renovation Mortgage:
For major home improvements to your current home with multiple payments to the contractor during the renovation process and you make interest-only payments during this period.
Purchasing your first home can feel like an overwhelming process. The people you know and trust at First Federal Bank are committed to understanding your specific financial situation, explaining all of your mortgage options and making the process as hassle-free as possible. We have designed a special kit just for first time homebuyers to help guide you through the process.
Low Down Payment/No Down Payment Options 
Special loans are available with little or no money down if you meet certain income and housing criteria. Programs are also available through agencies such as the USDA Office of Rural Development and the Federal Home Loan Bank. The following are several options available to you to make your dream of owning a home a reality:
100% Financing
100% Financing provides you with an option to own your own home sooner than traditionally possible while building your investments by eliminating your need for a down payment. If you already own a home, you can refinance up to 100% of your home's value. 100% Financing may be the best mortgage option for you if you:
- Are looking for the maximum financing available
- Have limited or no funds available for a down payment or would rather keep your funds in other investment options
- Are looking for flexible options for additional home buying potential
There are also special programs available through the USDA Office of Rural Development.
FHA
FHA improves your purchasing power, regardless of income amount or geographic location, by allowing you to purchase or refinance your home with as little as 3.5% down; which can be a gift or loan from family members, or 3.5% equity, respectively. FHA may be the best mortgage option for you if you:
- Are looking for a loan that allows down payment funds to come from a combination of sources
- Have limited funds available for a down payment or would rather keep your funds in other investment options
- Want to avoid extra fees typically required with 100% financing
