Normally, first mortgages are primary
financing on the residence of the borrower. These can be
variable or fixed rate loans. Interest paid is normally
deductible for personal income tax purposes. Check with your
tax advisor to determine deductibility.
With a Balloon Loan, the note
term is shorter than the full amortization of the loan. For
example, a 15 year mortgage with a note that renews
annually. At the renewal date, the balance (or balloon) is
refinanced for another short term period at the interest
rate in effect at that time. Payments are based on the
full term of the loan.
A fixed rate loan is usually a longer
term than a variable rate. The interest rate and payment
amount is locked in for the entire term of the loan, for
example 15 or 30 years. These loans may be sold on the
secondary market, however, all payments are serviced through
will help you the amount of mortgage you qualify for and
Second mortgages and Home Equity loans
are additional borrowing over the amount of the first
mortgage and are normally used for vehicle purchases, home
improvements, etc. These loans are made based on the equity
in the borrower's residence. Equity is the difference
between the amount borrowed against the residence and the
value of the residence. Interest paid is normally deductible
for personal income tax purposes. Check with your tax
advisor to determine deductibility.
A Home Equity Line of Credit allows
you to borrow and repay on a revolving basis against the
equity in your home. Interest is tied to Prime Rate and
adjusts annually. Monthly interest payments are required.
There is a $25.00 annual fee.
Home Equity Borrowing
calculator to determine the borrowing power of your home
loans can be used for the purchase, expansion or refinancing
of a business. Types of commercial loans are manufacturing,
service industries, retail, commercial and residential real
estate development, etc. Fixed rate commercial loans have a
rate that is locked in for the term of the loan, normally
one to five years. Variable rate loans are tied to an index
rate with the loan rate fluctuating whenever the index rate
changes. Loans can be secured by real estate, fixtures,
inventory and accounts receivable, etc.
established once per year for a certain amount, these loans
can be drawn against or paid on anytime during the year.
These loans are normally required to be revolving in nature
and paid to zero at least once per year.
Agricultural Real Estate loans are primarily for the
purchase, refinancing or improvement of real estate property
such as construction financing for expansion purposes.
These loans can be for the small family farm to large
corporations for production agriculture including dairy,
cash crop, custom work, etc.
Agricultural Personal Property Loans are primarily for the
purchase or refinancing of equipment, machinery and
Agricultural Revolving Line of Credit loans are set up for a
predetermined amount which can be borrowed, repaid and
borrowed again up to an aggregate set amount. These loans
can be tied to a checking account to provide overdraft
protection. An annual fee is assessed for these loans based
upon the original amount. Funds used for operating expenses
or seasonal purchases repaid within a year. The line
typically must be cleared annually for thirty consecutive
Assignments can be established so the loan payment comes
directly to our bank from the milk company. The payment is
deducted from the milk check proceeds either monthly or
semi-monthly. This automatic payment option ensures that
loan payments are made on time.
These loans can be unsecured or
secured with collateral such as automobiles, recreational
vehicles, household items, etc. There is no set monthly
payment however interest is normally payable monthly,
quarterly, semiannually or at maturity. Principal payments
made at any time.
these loans are for the purchase of automobiles, household
items, recreational vehicles, etc. Typically, monthly
installments of principal and interest payments are required
for the term of the loan until paid.
This loan is tied to a specific
checking account and serves as a reserve in the event the
checking account is about to become overdrawn. Funds from
the line of credit are transferred in increments of $100.00
to the checking account to cover the potential overdraft
amount. The Personal Line of Credit amount, term and
collateral are determined at the time of inception based
upon the borrowers credit history. Minimum payments are
automatically deducted from the checking account monthly or
the entire balance can be paid off at any time.
loans are used to fund higher education fees, such as
college or technical school tuition. The repayment can be
deferred while in school. Student loan funding is provided
Sallie Mae .
Application packets are available at our bank. The
Financial Aid office at your post-secondary school can
provide more information on higher education funding.
disability insurance to cover the loan principal balance in
the case of death and monthly payment in the case of
disability. Premiums are based upon loan amount. Coverage
is available for installment loans, residential real estate
mortgages, agricultural and commercial loans.
existing deposit account at our bank, your loan payment can
be automatically transferred on the due date. This saves
you the time involved to make the payment in person and,
provided your deposit account has sufficient funds, ensures
that your payment is always made on time. There is no
charge for this service.