GreenLeaf Bank Mortgage Options
- These are products which are offered with several term options including 10-year, 15-year, 20-year and 30-year
- The interest rate is set at the time of closing and remains constant over the entire loan term
- Many loans are subject to a 20% down payment, although other loan options may be available
- Loans with less than 20% down payment will typically require Private Mortgage Insurance
- Borrowers must meet minimum credit requirements in order to be eligible for these products
- This is a type of loan that does not fully amortize over its term, meaning the loan will not be paid in full after the 5 years of payments have been made
- Thus, a balloon payment is required at the end of the term to repay the remaining principal balance of the loan
- Balloon loans can be attractive to short-term borrowers because they typically carry lower interest rates than loans with longer terms
- Borrowers must be aware that the balloon payment will pay off the existing balance which could require refinancing, at the risk of a higher interest rate
- These loans are available to provide funding to build a residential home
- The terms are a one-year loan with interest only payments
- Funds are distributed as work on the new home progresses