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Mortgage & Home Equity Loan Information

Southbridge Savings Bank has the home loan you need,
whether you're buying, refinancing, renovating or building.

Southbridge Savings Bank offers added value. Buying a home will probably be the most expensive purchase you ever make. That's why we make every effort to keep closing costs as low as possible. Some of the ways we do this include:

• No credit report charge
• No points option

We also offer Rural Housing Loans.

How much can you afford?

We're happy to pre-approve you for a loan amount before you go house hunting. Pre-approval enables you to know in advance the size mortgage you can afford, and helps you shop wisely and negotiate with confidence. It can be done over the phone, in person or via e-mail.

Fixed Rate or Adjustable Rate Mortgage?

Fixed Rate Mortgages have a fixed payment of principal and interest over the life of the loan and are available with various terms. The longer the term, the lower your monthly payments will be. This type of mortgage helps you plan your budget because you will always know in advance the exact amount of your monthly payment.

Adjustable Rate Mortgages can offer a lower initial monthly payment and initial interest rate. Interest rates and payments can fluctuate over the life of your loan. However, payments are protected from extreme interest rate changes by interest rate "caps." The initial lower interest rate and payments may help you qualify for a larger home loan, along with longer terms.

You can take advantage of our bi-weekly payment option which will lower your overall interest cost and shorten the time to payoff the loan.

First Time Homebuyers

We have a special mortgage option if you have a low-to-moderate income and would like to buy your first home. This option has a reduced loan rate with low down payment options available (of which 2% can be a gift).

Building a Home

We offer a Construction-Permanent Mortgage to help you save on closing costs and simplify the mortgage process. This loan will provide financing while you build and a permanent mortgage when construction is complete. We offer single closing loans, and you can select the final loan term and type--fixed or adjustable rate. Other options include, twelve months of interest only payments and up to four free inspections.

Home Equity Loan & Line of Credit

If you currently own a home, you may have access to thousands of dollars worth of equity. You can use this equity for home improvements, a new car, college education costs, bill consolidation or whatever you like.

• With a home equity loan, you borrow a specific amount for a specific period of time at a fixed rate of interest.
• A home equity line of credit is a revolving credit line. The money is available simply by writing a check. The interest rate could be either fixed or adjustable.

The interest paid on a home equity loan or credit line may be tax deductible depending on your particular tax status. Consult your tax advisor regarding tax deductibility of interest and charges under the plan. Southbridge Savings offers extremely low, competitive rates for whichever one you choose and either minimal or no closing costs. You are required to carry property insurance as a part of this plan.

Click Here for our simple worksheet to determine how much equity you may be able to tap into from your current home.

Mortgage application checklist.

(Bring these items when you apply)

1. Purchase agreement or if refinancing, copy of deed
2. Employers over the last two years (name, address & telephone)
3. Original W-2's for the last two years
4. Paycheck stubs for the prior month
5. Last three months checking and savings accounts statements
6. List of creditors - ­include name, account number, balance, number of payments & number of payments due
7. If current homeowner, name of financing bank or if renter, name and telephone of landlord