Loans - Rates and Terms
Loan Fees
Loan Interest Rates & Maturity Limits
Loan Fees
- Application fee - $500 on loan commitments of $250,000 or more (regardless of the amount of new loan funds required). This fee is credited toward the loan closing fee.
- Loan closing fee - 1% of loan funds actually advanced.
- Line of credit fee - .25% of loan funds actually advanced.
Payment Options
- Construction loans - During the construction phase, the borrower will be billed monthly for interest only on loan amounts disbursed to date. An anticipated completion date will be established, at which date the loan is expected to become an amortized loan, with fixed monthly payments.
- Amortization loans - Monthly loan payments will be based upon the approved loan amortization term. Payments will be applied first to accrued interest to the date of loan payment, with the remaining payment amount, if any, being applied to the loan balance.
- Lines of credit - The borrower will be billed monthly for interest only on the outstanding balance of the line of credit, during the term of the agreement. Payment in full is expected at the maturity date.
- No prepayment penalty will be charged. However, it is expected that an interest payment or regular loan payment will have preceded any extra payment on the loan principal balance.
- Alterations to normal payment structures may be developed and agreed upon by staff, provided such payment structures will retire the loan within the approved amortization term.