At Bangor Savings Bank we offer a variety of home loans to fit your needs. 


Fixed Rate Mortgage

The traditional fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer.  When rates are low, fixed rate loans provide the security of a mortgage payment that doesn’t change over the life of the loan.  If you have taxes and insurance included in your monthly payment, those amounts can change however.

Adjustable Rate Mortgages (ARM)

If you plan to move within seven years, then adjustable-rate loans are usually cheaper.  An adjustable rate mortgage, known as an ‘ARM’, is a loan that typically offers a lower initial interest rate than most fixed rate mortgage loans.  The interest rate, however, can change periodically and is usually tied to an index.  The monthly payment will go up or down accordingly.

The tradeoff to the initial lower monthly payment may be a higher monthly payment in the future should the rate of your ARM increase.  It is important that you weigh the risk.  Often times, an ARM may be well-suited for borrowers looking to finance for shorter terms of 3-7 years, for example.

Please consult with your Mortgage Loan Officer for additional information.

Veteran Administration (VA)

The Department of Veterans Affairs provides a home loan guaranty benefit and other housing-related programs to help purchase or refinance homes for primary occupancy.  Service members, Veterans, and eligible surviving spouses may be eligible under this program.  Suitable credit, sufficient income, and a valid Certificate of Eligibility (COE) are required to be eligible for a VA-guaranteed home loan. The home must be for primary occupancy.

State Housing Authority Mortgages - Maine, Massachusetts and New Hampshire

The State Housing Authority mortgage programs provide low fixed rate mortgages and other assistance to help make homeownership affordable.  Programs available for first time homebuyers and others.  These programs offer options with little or no down payment required.  Should you still need help with the cash required for closing, some programs also offer down payment and closing cost assistance.  Guidelines for these programs differ by state.

Federal Housing Administration (FHA)

The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders to include Purchases, Rate and Term and Cash-Out Refinances. FHA provides lower down payment requirements than conventional loans on single family and multi-family homes in the United States and its territories.  FHA lending limits vary based on a variety of housing types and the state and county in which the property is located.

Rural Development (RD)

Rural Development loans are primarily used to help low to moderate income individuals or households purchase homes in rural areas.  Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.  In addition, applicants must have reasonable credit histories.

Construction Loans

We offer single close construction loans for borrowers who wish to build their home.  The unique characteristics of a construction loan require additional underwriting and administration. Prior to closing, a construction loan requires receipt and review of a construction contract/construction budget signed by the borrower and the general contractor.

Land Loan

Purchase of land and intended for construction of a residential property within the foreseeable future.  Maximum financing is 65% of the sales price or appraised value whichever is less.