Provident Home Loans Mortgages

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.

With a fixed-rate mortgage, the monthly principal and interest payment remain constant for the life of the loan. Fixed-rate mortgages work well if you’re on a fixed income or plan to stay in your home for more than 5 years because they offer stable payments and long-term protection against rising mortgage interest rates.

After a predetermined fixed-rate period, an adjustable rate mortgage (ARM) adjusts annually in accordance with current market rates. It usually offers lower initial rates than a fixed-rate mortgage, but can increase after the fixed-rate period. ARMs are ideal if you don’t qualify at higher fixed interest rates, you can financially manage fluctuating payments, or you’re planning to sell within 5-10 years.

A Jumbo Mortgage Loan is a loan with a loan amount that exceeds the maximum loan amount set for conventional mortgages by the Federal Housing Finance Agency (FHFA). In 2025, this limit is generally $806,500 for single-family homes in most parts of the U.S. Loan amounts exceeding this amount are considered jumbo loans.

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 downpayment. 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.

A prequalification is an initial assessment of your creditworthiness and affordability based on your self-disclosed income, assets and credit history. This allows you to understand your budget and narrow your search for a home or other purchase. You can authorize the loan officer to pull a current credit report or you can provide a copy of your free credit report (AnnualCreditReport.com) for them to review. Prequalification doesn’t guarantee loan approval, but it provides a general idea of your borrowing capacity and can be a valuable tool in your financial planning. Once your loan officer has finished the prequalification process, they can provide you with a letter that states your qualification for a mortgage amount and this can be provided to your realtor and/or a seller if you make an offer to purchase a home.

When you make loan application, the lender will provide you with a Loan Estimate which lists all expenses related to the mortgage transaction. After you have reviewed and accepted the disclosures, the lender will ask you to pay for the credit report, appraisal and application fee.