Oakland Deposit Bank Mortgage Division

Loan Programs

There are many loan programs to fit almost any need. Please call and ask which loan program best fits your situation.

15 & 30 Year Fixed Rates: Principal and interest payment and rate will remain the same from start to finish
Adjustable Rate Mortgage (ARM): Offers a lower start rate. Rate will adjust either every 6 months or every 12 months depending on program and grade and is based on the economy. Maximum 6% increase in rate over the life of the loan for prime and 7% ceiling rate for sub-prime.
3/1 and 5/1 and 7/1 Fixed Rate: Rate is fixed for the first 3, 5 or 7 years, then shifts to an adjustable rate mortgage (ARM).
Construction Loans: A short term loan, usually 6 months to one year, to construct a home for your primary residence. We are one of the few lenders who will permit you to act as your own contractor.
Land and Lot Loans: Permits the purchase of a lot or land on which you intend to build a home.

Which Program is best for me?

Here are a few things to keep in mind when selecting a loan program.

15 & 30 Year Fixed Rates

Advantages: Disadvantages:

Maximum interest deduction for taxes, sometimes easier to qualify, stable predictable payments, high loan to value, lower down payment, possible secondary financing if needed.

Pay more interest over the life of the loan, higher starting interest rate, Lower debt ratio (Larger Income to qualify) Higher monthly payment.

Adjustable Rate Mortgage (ARM)

Advantages: Disadvantages:

Lower starting rate than 30 year fixed. Great for refinancing from a higher rate. Use when you plan a move in 5-7 years. Some are convertible to 30-yr fixed or a treasury ARM, low fees, good rates.

Payment increases after initial fixed rate period may affect your budget. Not recommended for those on a fixed income or employed in jobs providing little potential for salary growth.

3/1 and 5/1 and 7/1 Fixed Rate

Advantages: Disadvantages:

Lower starting rate than Fixed Rate Programs. Payment is known for a fixed period of time. Especially beneficial if you don't intend to occupy the home for more than 3 to 7 years.

If you occupy the home past 3 to 7 years, the interest rate is adjustable and payment increases may affect your budget.

Construction Loans

Advantages: Disadvantages:

Our program allows you to build with minimal cash investment. You can borrow up to 85% of the estimated completed value of your proposed construction and lot. In many cases, this permits you to borrow the full cost of construction and lot. A major advantage of our program is you are permitted to act as your own contractor if you wish.

Your final interest rate on the completed home is not set until the house is complete. The rate can usually be "locked" within 30-45 days of completion. Longer locks are available, but may require a fee.

Land and Lot Loans

Advantages: Disadvantages:

Allows you to finance up to 85% of the appraised value of the property. Terms are available up to 20 years. When you are ready to begin construction, the balance owed on the land can be included in your construction loan. Quick approval - usually within 1 to 2 days of receiving a completed application and supporting documentation.

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Additional Comments

We offer over 100 different Loan Programs to meet the needs of our Customers. This list is only a small portion of the Loan Programs available to serve you. Please give us a call or email us for information on other plans available.