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Loan Program Summary

Loan Programs Characteristics
Long-Term Fixed-Rate Mortgages
  • Interest rate does not change.
  • Principal and interest (P & I) payment amount does not change.
  • Fixed-rate mortgages fully amortize over a defined period of time and are paid in-full at the end of the loan term.
  • Different loan terms are available (15-, 20- and 30-year terms are most popular).
  • The shorter the term, the faster equity is built and the loan is paid off.
  • No prepayment penalty.
Fixed-Rate Balloon Mortgages
  • Principal and interest (P & I) payment amount and interest rate do not change.
  • Regular monthly P & I payments are based on 15-, 20- or 30-year amortization, while the unpaid balance (balloon) is due at the end of a shorter, predetermined term, typically 5 years.
  • Most borrowers anticipate refinancing or selling prior to the end of the balloon term.
  • No prepayment penalty.
Construction Loans
  • Interest only during construction period.
  • Funds advanced as needed.
  • Typical term is 4- or 6- months.
Government Loan Programs
  • Rural Development Loans
  • FHA Loans
  • VA Loans
NEW!
IFA Mortgage Certificate Program
  • Clear Lake Bank & Trust is a participant in this program, which provides federal tax credits equal to 30% of annual mortgage interest paid up to a $2,000 credit/year for the life of the loan. For details and eligibility requirements, contact one of our lenders.

 

* First Home and First Home Plus IFA programs can be used in conjunction with the above government programs and conventional mortgages, subject to eligibility.


Considerations:
 

  • How important is payment certainty? If knowing that your payment will be the same every month is important, consider a fixed-rate mortgage.

  • How important is rapid equity buildup? If rapid equity buildup is a factor, consider a shorter amortization period, such as a 15-year, fixed-rate mortgage.

  • Other factors to consider include:
    • ability to qualify at market rates for loan amount selected
    • anticipated term of occupancy
    • existence of up-front costs
    • Interest Rates - View Today's Home Loan Rate