If owning a home is on your bucket list, you may be able to check off that box sooner than you think. A residential mortgage loan is one that you receive to buy a house or other residential property (think: condos, townhouses, or vacation homes). This loan is secured by the real estate purchased with the monies received until the principal balance and the interest has been paid, in monthly installments. However, this can vary based on your debt to asset ratio and payment preferences.

 

Residential Adjustable Rate Mortgage (ARM)

An adjustable rate mortgage has an initial rate for a designated term with periodic rate adjustments at defined frequencies thereafter. This allows your payments to rise and fall with the economy, while still allowing you the ability to plan your budget accordingly. All ARMs have caps on them, meaning that your interest rate can only increase by a certain percentage. Our ARM can only increase by up to five percent during the term of your loan. Many customers find that ARMs work to their advantage, offering lower interest rates in the short-term, allowing them time to earn more and plan accordingly moving forward. 

 

Residential 5/5 ARM

At Shore United Bank, we know that accomplishing your financial goals can seem impossible. That’s why we offer competitive mortgage rates and options. With our 5/5 ARM1 your interest rate will stay fixed for the first five years of your loan, and after that, the interest rate will be adjusted to suit the demands of the economy once every five years after that. So, based on a typical 30-year loan, our ARM rates will be adjusted up to five times, with a limit of increasing the interest rate by five percent total during the span of the loan’s lifetime. This option may allow you to have lower initial payments and locks your interest rates in place for the first 60 months. With our ARM, you can accomplish your financial goals now while planning for the future.

Contact us to learn more about our ARM  |  Apply for a residential loan today at your nearest branch

 

Residential 10/1 ARM

We understand that your financial goals may be different than others, therefore, we have a second ARM product available with you in mind.  With our 10/1 ARM your interest rate will stay fixed for the first ten years of your loan, and after that, the interest rate will be adjusted to suit the demands of the economy once every year after that. So, while your rate may adjust annually after the first ten years, the interest rate will be limited to an increase of five percent total during the span of the loan’s lifetime. This option may allow you to have lower initial payments and locks your interest rates in place for the first 120 months. With this ARM loan option, you can accomplish your financial goals that are most important to you.  

Contact us to learn more about our ARM  |  Apply for a residential loan today at your nearest branch


20-Year Fixed Residential Mortgage

If you want peace of mind knowing that your monthly principal and interest payment will remain the same each month, then our 20-year fixed mortgage loan may be a good option for you.

In addition to locking in your interest rate for the life of the loan, a 20-year fixed mortgage loan can help you pay off your home faster and build equity more quickly than a traditional 30-year mortgage. This benefit makes the 20-year fixed mortgage a good option to consider if you are planning to buy a new home or refinance your existing mortgage loan.

At Shore United Bank, we offer a competitive interest rate as low as 3.5% with an Annual Percentage Rate (APR) of 3.561%3 for terms up to 20 years for your primary residence. The maximum loan to value for primary residences is 85%. Based on the loan amount borrowed, closing costs will vary and are due at the time of closing.

Additional rates and terms are available for 15 year fixed residential mortgages and for secondary residences.  Contact us to learn more about our mortgage options, or apply for a residential loan today at your nearest branch.

 

List of Mortgage Loan Originators (NMLS)

 

1Adjustable Rate Mortgage (ARM) rates are subject to change every five years during the term of the loan. For example, terms for a $250,000 5-year ARM amortized over 360 months for a single-family primary residence with a down payment of 15% or more would be an initial interest rate of 3.00% effective for 60 months with monthly payment for months 1 – 60 of $1054.21. Beginning at month 61 and every five years thereafter interest rate would adjust. Based on the current (November 9, 2020) index rate of 2.91% plus a margin of 0.75% the interest rate for months 61 – 360 would be 3.625% and the monthly payment would be $1,127.91. The APR for this loan example would be 3.45%. Payments in this example do not include taxes or insurance. Your payment may be greater. Borrower must maintain insurance on the property securing credit.

2 Adjustable Rate Mortgage (ARM) rates are subject to change every year, after the initial ten years, during the term of the loan. For example, terms for a $250,000 10/1 ARM amortized over 360 months for a single-family primary residence with a down payment of 15% or more would be an initial interest rate of 3.25% effective for 120 months with monthly payment for months 1 – 120 of $1088.23. Beginning at month 121 and every year thereafter the interest rate would adjust. Based on the current (November 9, 2020) index rate of 3.20%  for months 121-360 would be 3.25% and the monthly payment would be $1,088.23. The APR for this loan example would be 3.294%. Payments in this example do not include taxes or insurance. Your payment may be greater. Borrower must maintain insurance on the property securing credit.

3The Annual Percentage Rate (APR) is based on the following example. $250,000 loan for a single-family primary residence with a 15% down payment with an interest rate of 3.5% would result in 240 monthly payments of $1,450.08. $250,000 loan for a single-family secondary residence with 20% down payment with an interest rate of 3.75% would result in 240 monthly payments of $1,481.53. Payments do not include taxes or insurance. Your payment may be greater. Borrower must maintain insurance on the property securing credit.

All loans are subject to credit approval, and the borrower must maintain insurance on the property securing credit. Interest rate and APR may vary based upon loan amount or loan term.  Additional rates and term are available for secondary residence.