Home Loans Solutions

Fixed Rate Mortgages – A fixed-rate mortgage means your mortgage interest rate – and your total payment for Principal and interest – will stay the same for the entire term of the loan. This offers you consistency that can help make it easier for you to set a budget.

When does a fixed-rate mortgage make sense?

• If you are planning on owning your home for a long time (generally longer than 7 years).
• If you think interest rates could rise in the next few years and you want to keep the current rate.
• If you prefer the stability of a fixed principal and interest payment that doesn’t change.

Adjustable Rate Mortgage (ARMs) – Adjustable-rate mortgages (ARMs) have an interest rate that may change periodically depending on changes in a corresponding financial index that’s associated with the loan. Generally speaking, your monthly payment will increase or decrease if the index rate goes up or down. ARM loans are usually named by the length of time the interest rate remains fixed and how often the interest rate is subject to adjustment thereafter. For example, in a 5y/6m ARM, the 5y stands for an initial 5-year period during which the interest rate remains fixed while the 6m shows that the interest rate is subject to adjustment once every six months thereafter.

When does an adjustable-rate mortgage make sense?

• If you plan to move before the end of the introductory fixed-rate period, so you aren’t concerned about possible rate increases.
• If you want an initial monthly payment lower than a fixed-rate mortgage usually offers.
• If you think interest rates may go down in the future.

Alternative Mortgage Options – Some eligible homeowners may qualify for an FHA (Federal Housing Administration), VA (Department of Veterans Affairs) or USDA (US Dept of Agriculture) loan. These loans are government-insured loan programs that could be a good fit for borrowers seeking a lower down payment or credit score requirement, as compared to conventional loans.

Provident Bank participates in many programs with local housing authorities, municipalities and state housing finance agencies that provide grants, flexible lower down payment options and down payment and/or closing cost assistance.

Reverse Mortgages – Reverse mortgages allow homeowners aged 62 or older to convert a portion of their home’s equity into cash, while still retaining ownership. The loan is repaid when the borrower no longer lives in the home, usually upon their death or sale of the property.

You can apply online, reach out to your local branch and ask them for the name of a loan officer, or contact a mortgage loan officer in your area.

For a preapproval, you will need current paystubs, your credit score and the amount of funds that you have available for down payment. If you are self-employed, you will need to provide two years most current, filed personal and/or business tax returns. If you do not know your credit score, you can authorize the mortgage loan officer to pull a credit report for you.

Yes, Provident Bank offers the Community Advantage Loan Program in the Newark Lending Area and the Welcome Home Loan Program throughout the Bank’s footprint. Both loan programs are meant to provide lower down payment options for first-time homebuyers and low-to-moderate income borrowers. For more information on these loan programs, please visit their informational pages.