Loan Products

What type of mortgage is right for you?

Conventional Fixed-Rate Purchase or Refinance

A fixed-rate mortgage is a mortgage that has a definitive interest rate for the entire life of the loan. Since the interest rate remains the same throughout the term, the mortgage payments, made up of principal and interest, don't change.

The fixed-rate mortgage is the most common type of home loan due to its security and predictability. These key benefits typically attract homeowners who have growing families and are looking to settle into a community for years to come. Fixed-rate mortgages are also straightforward and reliable. If interest rates increase, there is nothing you have to worry about because your loan's interest rate remains fixed. If interest rates decrease, you can take advantage of them by refinancing. 

New Construction Purchase Loans

Planning on buying a newly constructed home? In a fluctuating rate environment, you can feel confident knowing your rate is locked in for an extended time period. Financing a new home is a bit different than the typical financing of a previously owned home. You will work with a builder to select a property lot, floor plans, specifications, etc. This information will be provided to the bank to be approved for financing and you will have one closing upon completion of the home.

Construction-Permanent Loans

With this type of loan, you can borrow money to pay for the construction costs of building your dream home. After completion of the home, the loan is converted to a permanent conventional mortgage. This format is basically a two-in-one loan that has only one closing, so you will only pay one set of closing costs.

During the construction of your home, you will only pay interest on the amount of money advanced to you. The interest rate is fixed for the term of this loan, however your payment will fluctuate during the 8 month construction period based on the amount of funds that have been dispersed to you. 

At the end of the 8 month interest only period, the loan will convert to a conventional mortgage, with a loan term of 15-30 years, and you will make payments that cover both principal and interest. 

Adjustable Rate Mortgages 

Trustco Bank offers an adjustable-rate mortgage, an ARM, which is a type of mortgage that features an initial fixed interest rate for a set period of time, but can periodically change over the life of the loan based on market conditions. This type of mortgage can be attractive because during the initial period, interest rates tend to start lower than those associated with fixed-rate mortgages. Once the fixed period is over, interest rates are subject to adjustments based on a predetermined frequency. 

First Time Homebuyer

A first time homebuyer loan is designed to help individuals become homeowners. These programs vary depending on where you live and what your income level is, but the general idea is to provide financial assistance to qualified buyers. The first time homebuyer product allows for a low down payment and reduced closing costs. 

Home Equity Loans

Consider a Trustco Bank Home Equity Loan to consolidate existing debt, finance a home improvement project, or cover a large purchase. A home equity loan gives you a lump sum of money secured by your home. You repay the loan with equal monthly payments over a fixed term, just like a conventional mortgage. To qualify for a home equity loan, you first need equity in your home. You have equity when your home's value is higher than what you owe on any current mortgages on the property. 

Home Equity Lines of Credit

Home Equity Credit Lines are convenient for funding intermittent needs, such as paying off credit cards, making home improvements, or paying college tuition. You draw and pay interest on only the funds you need.

With a Home Equity Credit Line, you're borrowing against the available equity in your home and the house is used as collateral. A Home Equity Credit Line is a revolving line of credit, which means that as the principal balance is repaid, this amount will become available on the credit line again, much like a credit card. This gives you the freedom to borrower against your line of credit as needed. You can borrower as little or as much as you need throughout your draw period (typically 10 years) up to the credit limit. At the end of the draw period, the repayment period (typically 20 years) begins. 

Contact one of our mortgage professionals today for help determining which loan best suits your needs!