Mortgages

The Bank of Hindman offers competitive rates and great personal service. Whether you are buying a new home or refinancing, we offer a variety of mortgage banking products plus online planners and tools to help you get answers to your mortgage and home buying questions. As an experienced mortgage lender, we can help you choose a mortgage option that suits your needs and show you how much your mortgage payments will be.

Fixed Rate Mortgages

A fixed rate mortgage loan provides you with the security of a monthly principal and interest payment that never increases because the interest rate never changes during the term of the loan. The only change could be an increase or decrease in the amounts the lender collects for mortgage insurance, real estate taxes or property insurance (escrow payments).

Conventional Balloons

If you plan to live in your home for three to seven years and want the benefits of a fixed monthly payment, the Balloon Loan may be a good option. Balloon loans are fixed-rate mortgages based on a 30-year amortization; with a conditional right to modify and extend at the end of the balloon term (most commonly 5 or 7 year balloon terms).

The interest rates are lower than long term fixed programs and are very advantageous for borrowers who are likely to move within the balloon term. The lower mortgage rates and payments maximize purchasing power. Equity builds slower than with shorter amortization products and balloons usually require a larger down payment.

Adjustable Rate Mortgages (ARM)

Want the advantage of a low interest rate? If so, an Adjustable Rate Mortgage may be the right choice for you. With an ARM, the interest rate changes at predetermined intervals based upon an index, which reflects the money market rate. The change in interest rate will also change how much your adjustable rate payments will be.

The advantages of an ARM include:

• Initially, the loan rate is normally lower than fixed rates.
• If your interest rate increases, you can grow into your higher mortgage payment as your career advances and your salary rises
• ARMs could be less expensive over a long period than a fixed rate mortgage.
• If interest rates remain steady, you will continue to benefit from the lower initial rate and if rates drop, your monthly payments will decrease without refinancing.

To minimize interest rate increases, ARM loans offer the protection of Annual and Lifetime Caps

Construction Loans

Bank of Hindman keeps financing simple by offering construction loans that offer great flexibility during your building process. Draw funds as needed during your construction project, then upon completion the construction loan can be converted into one of our many loan options.

Refinancing

Obtain additional cash out of your primary home or take advantage of mortgage rate reduction. Loan-to-value ratios vary.

Alternative Financing

For customers with unique needs, such as self employment or credit that is less than perfect, we offer a variety of mortgage options and banking services, along with personal service from a knowledgeable team.