Loan Options for Various Stages in Life

Tailored Solutions from Your Community Bank

At every stage of life, financial needs evolve. Regardless of the financial need, having access to the right loan options can make a significant difference. At Jarrettsville Federal Savings & Loan Association, we understand these changing needs and offer a range of loans tailored to support you through each phase of life. 

Purchasing a home is one of life’s significant milestones. Whether you are a first-time homebuyer or looking to refinance, our mortgage loans provide you with the necessary funds to make your dream home a reality. Banks offer a variety of mortgage options, including fixed-rate and adjustable-rate mortgages, to suit your financial situation. Experienced loan officers are committed to guiding you through the mortgage process, ensuring a smooth and stress-free experience from application to closing.

For entrepreneurs and business owners, having access to capital is crucial for growth and sustainability. Business loans are designed to support your business at every stage, whether you are starting a new venture, expanding operations, or managing day-to-day expenses. Community banks offer a range of business financing options, including term loans, lines of credit, and commercial real estate loans. At Jarrettsville Federal Savings & Loan Association, we take the time to understand your business needs and goals, providing personalized solutions to help you succeed.

In every phase of life, Jarrettsville Federal Savings & Loan Association is here to support you with the right financial solutions, ensuring you have the resources you need to achieve your goals and secure your financial future. Here’s a closer look at how community banks can help with home mortgage loans, and business loans.

Home Mortgage and Construction Loans

Community banks understand that mortgage and construction loans are pivotal at key stages in a person’s life, enabling the realization of homeownership and personal projects. A mortgage loan is essential when buying a home, providing the necessary funds to make this significant investment manageable with structured repayments. Similarly, construction loans are vital for those looking to build their dream home or undertake major renovations. These loans offer short-term financing to cover construction costs, which can later be converted into a traditional mortgage once the project is completed. 

Community banks pride themselves on offering personalized service, competitive rates, and expert guidance, ensuring that these critical financial tools are accessible and tailored to meet the unique needs of our customers, helping them achieve stability and fulfillment in their homeownership journey.

Mortgage loans and construction loans serve different purposes in real estate financing. Here is a breakdown of the differences:

• Purpose:
  • Mortgage Loan: A mortgage loan is typically used to purchase or refinance an existing property.
  • Construction Loan: A construction loan is specifically designed to finance the construction of a new property or the renovation of an existing property.

• Disbursement of Funds:
  • Mortgage Loan: In a mortgage loan, the entire loan amount is disbursed upfront at the time of purchase or refinancing.
  • Construction Loan: Funds from a construction loan are typically disbursed in stages or “draws” as the construction progresses. This is done to ensure that the funds are being used appropriately and to minimize the lender’s risk.
• Interest Rates:
  • Mortgage Loan: Mortgage loans generally have fixed or adjustable interest rates that are determined at the time of loan origination.
  • Construction Loan: Construction loans can have variable interest rates, which may be tied to a benchmark such as the prime rate or LIBOR during the construction period, however they can also be offered as a fixed rate option. 
• Repayment Terms:
  • Mortgage Loan: Repayment of a mortgage loan typically begins immediately after the loan is disbursed, with regular monthly payments over a fixed term (e.g., 10, 15, 20, or 30 years).
  • Construction Loan: Repayment of a construction loan may not begin until the construction is complete. Once construction is finished, the loan may be converted into a traditional mortgage loan with regular monthly payments.
• Loan-to-Value (LTV) Ratio:
  • Mortgage Loan: LTV ratio for a mortgage loan is calculated based on the purchase price or appraised value of the property; whichever is less.
  • Construction Loan: LTV ratio for a construction loan is typically calculated based on the projected value of the property upon completion of construction. This may include the estimated cost of construction plus the value of the land.
• Requirements and Documentation:
  • Mortgage Loan: Mortgage loans require documentation such as income verification, credit history, appraisal of the property, and sometimes a down payment.
  • Construction Loan: In addition to standard documentation, construction loans may require detailed plans and specifications for the construction project, as well as oversight by a qualified builder or contractor that are submitted before loan approval.

Jarrettsville Federal offers both fixed rate conventional loans and construction loans. 

Fixed Rate Conventional Loans

• Competitive rates and closing costs
• 30, 20, 15 and 10-year terms available
• Easy budgeting and long-term planning
• PMI will be required if a 20% down payment is not made

Construction Loans

• Competitive rates and closing costs
• A single settlement saving you money
• Interest only payments for the first year
• Bank supervises the timeline for the draws

Commercial loans

Commercial loans vary and can be used for almost anything that a small or large business needs in order to operate or improve a business.  These loans can be helpful tools for owners looking to expand their inventory or buy new office space.  The loan amounts for small businesses can range from a few thousand dollars to over a million dollars.  When applying for a commercial loan, both your personal and business financial history will be evaluated.   Collateral is needed to secure repayment of the loan to the lender.

There are several popular commercial loan options available.

1. Installment loan – Just like with the consumer loan, this installment loan offers a lump sum of money all at once.  The business makes monthly payments to pay off the balance, interest, and fees.  Installment loans are excellent for expanding business operations or covering sudden unexpected expenses.
2. Lines of credit – This is similar to a consumer credit card.  A business line of credit makes sure that a business always has necessary funds available.
3. Equipment Loans – These loans are specifically used to purchase business equipment needed to run the organization.  This loan will only cover the cost of the equipment and a lender may require proof that the loan was used appropriately.

Business owners must borrow responsibly.  They are putting the future of their business, as well as personal assets, at risk.  Be prepared to have insurance for the item being financed.  Additionally, be prepared to send periodic financial statements to the bank.  No business will find funding options in the future if they default on a business loan!

Why use a Commercial Real Estate (CRE) loan?

A CRE loan is used to purchase the land or commercial property your business needs and to leverage your equity to expand or remodel as your business grows. Commercial loans typically have a term of 5 years, and the amortization period is often longer than the term of the loan. As your lender, for example, Jarrettsville Federal might make a commercial loan for a term of 5 years with an amortization period of 25 years. In this situation, the investor would make payments for five years of an amount based on the loan being paid off over 25years, followed by one final “balloon” payment of the entire remaining balance on the loan.

Tailored Financial Guidance

In addition to offering diverse loan options, community banks provide personalized financial guidance to help you make informed decisions. Experienced loan officers are able to:

• Assess Your Needs: Understand your unique financial situation and recommend the best loan options.
• Explain Terms Clearly: Ensure you fully comprehend the terms and conditions of your loan, avoiding any future surprises.
• Support Throughout the Process: From application to repayment, they are there to support you at every step, ensuring a smooth and positive experience.

Why Choose Jarrettsville Federal Savings & Loan Association?

As a community bank, we prioritize building lasting relationships with our customers. Our local expertise, personalized service, and commitment to the community set us apart. When you choose us for your loan needs, you benefit from:

• Personalized Service: We take the time to understand your needs and provide tailored solutions.
• Local Decision-Making: Our loan decisions are made locally, ensuring quick responses and flexibility.
• Community Commitment: By banking with us, you’re supporting the local economy and helping to foster community growth.

No matter what stage of life you’re in, Jarrettsville Federal is here to support your financial journey. Jarrettsville Federal has a secure online platform for your mortgage lending and refinancing needs. With competitive rates for the taking, now is the time to take advantage.  We offer a variety of reliable programs to assist all types of borrowers, from first-time homebuyers to long-term homeowners who are purchasing again or refinancing. From home mortgage loans to commercial loans, we offer tailored solutions to meet your evolving needs. Visit us today to learn more about our loan options and how we can help you achieve your financial goals. Together, we can navigate the financial milestones of life with confidence and success.