Whether you’re interested in buying, refinancing, or building a new house, getting a new car, or using the equity in your home, The Northumberland National Bank offers the perfect loan to fit your needs.
Adjustable Rate Mortgage Loans
We offer a variety of Adjustable Rate Mortgage Loans. These loan programs are “in-house” mortgage loan programs maintained by the bank. This means you will receive the VERY personal and flexible service you expect from your local and independent community bank. They range in initial fixed rate term periods and all offer the stability of a 5 year adjustment period thereafter. They all may be amortized for up to 30 years. Automatic biweekly payments are available from a NNB checking or savings account. All programs feature periodic and life time rate caps so you know what to expect in the future. Refinance transactions usually do not require the services of an attorney or title company. The bank can usually obtain a property lien search, which results in lower costs to you as the customer. Escrowing of taxes and insurances may be required.
The three standard programs we currently offer are as follows:
- 5/5 Adjustable Rate Mortgage offers an initial 5 year fixed-rate until first adjustment and then adjust every 5 years thereafter.
- 7/5 Adjustable Rate Mortgage offers an initial 7 year fixed-rate until first adjustment and then adjust every 5 years thereafter.
- 10/5 Adjustable Rate Mortgage has an initial 10 year fixed-rate until first adjustment and then adjust every 5 years thereafter.
A rate discount may apply for certain higher credit scores. In-house mortgage loans may be limited to 80% of the value of the home as a maximum loan amount. (Borrowers with limited down payment may want to consider a “Family Backed Mortgage”).
10-Year and 15-Year Fixed-Rate First Mortgage Loans
This in-house mortgage loan offers a fixed-rate for the entire 10 year term. Escrowing of taxes and insurances may be required.
Secondary Market Real Estate Loans
These fixed-rate mortgages are sold on the secondary market, however, terms include: 10, 15, 20, and 30 years. Financing above 80% loan to value requires private mortgage insurance. Escrowing of taxes and insurances may be required. Closing costs are conservative and competitive.
PHFA Mortgage Loans (Secondary Market)
This is a purchase mortgage product sold to the Pennsylvania Housing Finance Agency. There are different programs available for various levels of income including the First Time Homebuyers program. Financing above 80% of purchase price is available with lower expense than traditional private mortgage insurance. This is a fixed rate loan that can be amortized for 30 years. Escrow of taxes and insurances is required. Title insurance is required. Closing costs are restricted to administrative fees plus the bank’s costs. This is a great way to get into that first home!
Rural Housing Services (RHS/USDA) Mortgage Loans
This program assists in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible geographic areas. Eligible applicants may borrow up to 102% of the appraised value to help cover closing fees. Initial and ongoing guarantee fees may apply but are less expensive than traditional mortgage insurance. Escrow of taxes and insurances is required. Another great way to get into that first home!
Home Equity Loans and Lines of Credit
Home Equity Line of Credit
A Home Equity Line of Credit allows you to use the equity in your home to have a revolving line of credit. You apply only once for this loan, but use it over and over again. This line of credit may provide overdraft protection to your NNB Checking Account or you can draw funds as needed. The interest may be tax deductible. Financing is available for up to 80% of the value of your primary residence. Automatic payment from your NNB checking or savings account is available for this loan type. An interest rate discount may apply for certain higher credit scores. Interest rate is variable.
Option Home Equity Line of Credit
An Option Home Equity Line of Credit is the same as above, but with an additional feature. This product allows portions of the revolving balance to be paid back over a fixed-term with a fixed interest rate. The fixed-rate term out portions are called “Fixed Rate Advances” or FRAs. You may have up to three FRAs out at a time. The interest rate on the FRA will be determined by the interest rates we are offering (as published) at the given time on Fixed Rate Home Equity Loans (see below) of similar term length. This means you would be receiving the same interest rate offered as if you came in for a new loan; however, since it is a revolving line of credit you can use it over again without the hassle of always arranging for a new loan. See one of our lending officers for further details or a loan program disclosure.
Home Equity Loan/Junior Mortgage
This is a fixed-term loan that is based on the equity in your home. Financing is available for up to 10 years. The rate is fixed for the term of the loan and there are no bank fees. You may borrow up to 80% of your home’s value. We may also allow up to 90% of the equity in your residence to be borrowed provided NNB is the only mortgage holder. Automatic payment from your NNB checking or savings account is available for this loan type. A rate discount may apply for certain higher credit scores. Payments quoted in the table are principal and interest only. Loans requiring escrow of taxes and insurance will have higher payments.
Please call to inquire about special promotional home equity loan interest rates that are available from time to time.
Loans Secured by NNB Savings or Certificate of Deposit Accounts
This type of loan allows us to hold your NNB Savings or Certificate of Deposit Account as collateral. Your rate will be 2% above the rate your Certificate of Deposit account is earning, and allows flexibility to fit your borrowing needs. When using a Savings Account, your rate will be 3% above the rate the account is earning. Automatic payment from your NNB checking or savings account is available for this loan type.
Loans Secured by Marketable Securities
You can use equity in stocks you already own as collateral for this type of loan. We offer flexible terms and can initially finance 60% of the current market value of your stocks.
Unsecured Personal Loans
This type of loan is a term loan that does not require the borrower to pledge collateral. We offer competitive rates and flexible terms. Unsecured personal loans are an excellent alternative to paying the higher rates and fees usually found on credit card accounts. Automatic payment from your NNB checking or savings account is available for this loan type. A rate discount may apply for certain higher credit scores.
Reduced interest rates on personal loans are available to customers that maintain their home loan financing with NNB. Please call us today for details.
Personal Line of Credit
A Personal Line of Credit is an unsecured line of credit you can draw on as needed. It may be used as overdraft protection for your NNB Checking account and to help you avoid costly overdraft fees. You only need to apply once for this loan type, but you may use it over and over again. There is a low annual fee which is very economical when compared to credit card plans with “hidden” costs and higher rates. Automatic payment from your NNB checking or savings account is available for this loan type. A rate discount may apply for certain higher credit scores.
With our vehicle loans, you can finance the purchase of a new or a used vehicle with as little as 5% down cash or trade. Your new car purchase can be financed for as long as six years and your used car purchase can be financed for as long as five years. We also offer financing for the purchase of vintage and collector cars. We offer competitive rates and flexible terms based on your credit qualifications. Automatic payment from your NNB checking or savings account is available for this loan type. A rate discount may apply for certain higher credit scores.
Residential Investment Properties
An in-house 5/1 Adjustable Rate Mortgage is used to finance rental properties. The initial rate is fixed for the first five years and may adjust annually thereafter. This loan program can be amortized for up to 20 years. Biweekly automatic payments are available from a NNB checking or savings account.