Conventional - Fixed Rate Mortgages
Conventional mortgages provide the stability of fixed payments over the life of the loan and are usually a good option if you plan on staying in your home for a longer length of time. Your interest rate will stay unchanged for the life of the loan, with principal and interest payments remaining the same each month. Terms of 10, 15, 20 and 30 years are available. Fixed rate mortgages are available for 1 to 4 family homes, owner or nonowner occupied, as well as vacation or second homes.
Adjustable Rate Mortgages (ARMS)
ARMS provide a lower initial rate than conventional mortgages which, in turn, allows you to afford more house for your money. This type of loan is a good option if you plan on moving in a few years. One or three year ARMS are available. Interest rate and monthly payments are adjusted annually or every three years, based on a one or three year Treasury Securities Index, respectively. Terms are available up to 30 years. There is a 2% cap on each rate adjustment and a 5% cap over the life of the loan. Available for 1 to 4 family owner-occupied homes, investment properties, vacation or second homes and JUMBO mortgages (mortgages over $417,000).
Hybrid - Adjustable Rate Mortgages
As fixed interest rates are slowly climbing, a Hybrid Mortgage may be a good option for you. The initial term of the mortgage (5, 7 or 10 years) provides a fixed interest rate lower than the rates on a conventional 30 year fixed rate mortgage. After the initial fixed rate term (5, 7 or 10 years) the interest rate automatically converts to a one year adjustable rate mortgage.
When your mortgage balance is highest, you get the benefit of a lower interest rate.
- Lower monthly payment during initial fixed rate term (5, 7 or 10 years). Payments are based on a 30 year amortization period.
- Settlement costs may be less for a Hybrid Mortgage compared to conventional fixed rate mortgages.
- The average life of a mortgage is approximately 8 years.
You may refinance the Hybrid Mortgage at any time or prepay principal. There is no prepayment penalty.
First Time Home Buyers Program
The purchase of a home is the largest expense many people will experience in their lifetime. QNB offers a less expensive way for you to realize the American Dream. Our 80/5 Mortgage allows you to purchase a home with only 15% money down and reduces closing costs.
The program works as follows:
80% of the purchase price is a conventional 10/1 Adjustable Rate Mortgage (ARM) amortized over 30 years. (The interest rate is fixed for the first 10 years and converts to a One Year ARM thereafter.)*
5% of the purchase price is a 20 year fixed rate home equity loan.
This combination of mortgage products will result in the following benefits to you:
- ONLY 15% down
- LOWER monthly mortgage payments
- REDUCED closing costs
- NO PMI (Private Mortgage Insurance)
QNB offers one time settlement construction loans. During the first six months or the construction phase of the loan, you pay interest only on the amount of funds drawn at the time of billing. Upon completion of the construction, the loan converts to an amortized mortgage at prevailing interest rates without a second settlement.