There are many different types of home loans that Columbia Bank offers. However, the majority of these loans can be broken down into three distinct categories: mortgage loans, home equity loans and home equity lines of credit. Each of these types of loans is described below:
Fixed Rate Mortgages - Longer Term
Traditional fixed-rate mortgages have a constant interest rate and monthly payments that never change. A long-term fixed rate mortgage 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 may be a better option for you. 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.
Fixed Rate Mortgages - Shorter Term
These loans are fully amortized over shorter periods of time. Since the rates are fixed these loans also offer constant monthly payments. Because these loans are amortized over shorter periods of time your monthly payment may be greater; however, your interest rate will typically be lower than a longer term fixed rate mortgage. Thus, while your payments may be slightly higher than a longer term mortgage, you will be saving in interest costs over the life of your loan.
Adjustable Rate Mortgages
Adjustable Rate Mortgages, often referred to as ARM's, are loans where the interest rate can change. ARM's may start with a monthly payment that is lower than a fixed rate mortgage; however, keep in mind that your interest rate and your monthly payment could increase. Be sure to carefully weigh your options between a fixed rate mortgage and an ARM.
Low Fee Mortgage Programs
Whether you are purchasing a home or refinancing an existing home Columbia Bank offers several low fee and no fee options to suit your needs. Listed below are two of our more popular programs.
$0 Refinance Program
$475 Low Fee Purchase Program
Construction to Permanent Mortgages
If you are looking to build or expand your home Columbia Bank offers a Construction to Permanent Loan Program. Under this program borrowers will pay interest only during the construction period. Once your home is complete the loan will convert to an amortizing mortgage loan. Borrowers can also lock in a mortgage rate from the very start of construction.
Home Equity Loans and Lines of Credit
Home Equity Loans
In addition the many mortgage programs that we offer, Columbia Bank offers a variety of fixed rate home equity loans. Short term and long term options are available. These loans are a great option for anyone looking to make home improvements, consolidate debt, finance college tuition, etc. Home equity loans are often referred to as "subordinate" or "junior" lien loans as the mortgage to secure these loans is typically behind an existing first lien mortgage loan.
Home Equity Lines of Credit (HELOC's)
Home Equity Lines of Credit, also known as HELOC's are loans where a lender agrees to lend a certain amount over a specific period of time. During this time the borrower is offered a "draw period" in which they can draw down these funds as they need them. This helps borrowers save on interest expense since funds are only drawn as they are needed. At the end of the draw period, the outstanding balance is converted to an amortizing loan.