Residential Mortgages

Residential mortgages assist you in purchasing a property to live in. The loan is secured against the property and can come in various forms. Presence Bank is a local, trusted bank with over a century of experience helping clients reach their goal of owning a home. Whether you’re purchasing your first home or getting your dream home, you can count on us to provide a competitive interest rate with quality service.

Understanding Residential Mortgages

Residential mortgages are any loans taken against the property where you plan to live. These mortgages are a practical way for people to afford and invest in their own homes. Typically, the buyer provides the deposit for the house, and the lender covers the rest of the cost. The buyer then repays the lender with interest over time. There are multiple types of residential mortgages:

Fixed-rate mortgages: These mortgages charge consistent interest rates. You make monthly repayments for a set amount, usually between two and five years. The repayment period can be negotiated with the lender.

Variable-rate mortgages: Variable-rate mortgages or tracker mortgages have varying interest rates, which depend on the market or current bank base rates. These changing interest rates differ monthly, so the amount you pay follows suit.

Interest-only mortgages: These mortgages require you to pay only the monthly interest rates on the sum you owe. Once you reach the payment term, you repay the original amount you borrowed. Interest-only mortgages are less popular and are difficult to qualify for.

Repayment mortgages: With capital repayment mortgages, you pay both the interest payment and the original amount you borrowed in monthly installments. This mortgage type means you cover all outstanding amounts by the end of the mortgage term.

Why Choose Presence Bank for Your Residential Mortgage?

Presence Bank is committed to building long-term partnerships with clients, helping them at various life stages. We offer:

Knowledge and experience: Since 1919, we’ve been helping people realize their financial goals and fulfill dreams like owning a home. With more than a century’s experience, you can feel confident that your home and loans are in knowledgeable hands.

Trusted mortgage solutions: We are a state-chartered FDIC banking institution delivering industry-best solutions and rates. You can access our solutions online or in person, as you prefer.

Client-centric approach: As a local bank, we care for each client. We want to journey with you, support you in reaching all your savings and financial goals during your lifetime and help you build a legacy for your loved ones.

The minimum credit score you need for a mortgage may vary depending on the loan type. At Presence Bank, our mortgage experts can assess your financial situation and provide options that meet your circumstances and needs.

Fixed-rate mortgages come with consistent rates for predictable payments, while variable-rate mortgages change with the market, which may mean lower costs. The right option for you depends on your particular situation. You may desire an option offering more stability or a mortgage with lower costs over time.

Our financial experts can discuss your situation and current market conditions to discover a mortgage option that is right for you.

Your down payment is the cash you pay upfront for a home loan. The amount you pay will vary based on the loan program and your home’s purchase price, but you can generally expect to pay between 5% and 20%.

The down payment is deducted from your total mortgage amount and helps you begin building equity in your home. Our mortgage experts can provide more details about down payments to help you find the right solution.

Your monthly mortgage payments vary based on home price, down payment amount, loan term and interest rate. Gather all this information to discover what you will pay monthly. Before taking out a mortgage, determine how different home prices, down payments and loan terms impact your payments.

Residential mortgage rates can vary from day to day, so you will get the best idea of current rates by talking to our mortgage experts. Mortgage rates may also vary based on:

Loan amount: A lower loan amount in comparison to property value may result in a lower interest rate.
Down payment: If you pay a larger down payment, you might get a lower interest rate.
Credit score: A high credit score means you are more likely to repay the loan, which can give you lower interest.
Loan type: When you take a variable rate loan, your interest rate will change over time, unlike a fixed loan.

You will need various documents to apply, including:

Identification
Bank statements
Proof of income
Tax returns
Employment verification

Prequalification can make the mortgage approval process more straightforward. Our team at Presence Bank can also guide you in gathering all the necessary resources.

Enroll Today to Invest in Your Dream Home

Residential Mortgages