Mortgages

Whether you are a first time homebuyer, an experienced buyer, looking to refinance, or maybe getting ready to purchase a second home, we're here to make your mortgage a quick and easy process from start to finish.

At Katahdin Trust Company we take pride in meeting the needs of northern Maine's homebuyers and homeowners. We understand that one size doesn't fit all. That's why we'll customize a mortgage package especially for you.

We invite you to explore the many options available to you. If you would like further information on any of our mortgage programs, or if you have questions contact us and a mortgage specialist will be in touch with you.

How Much Can I afford? | Pre-Qualification
Mortgage Programs | Quick Steps to Owning Your Home | Application Checklist

How Much Can I Afford?
In determining how large a mortgage payment you can afford, keep in mind that your monthly mortgage payment generally should not exceed 28% of your gross monthly income, 40% when you include your other monthly debt. You should also consider the amount of payment that is comfortable for you. Remember this is only an estimate. Often times when we review your total financial picture we are able to find ways to help you afford more than you thought possible. Our loan specialists will be happy to work out a plan that best fits your financial needs.

For help in determining how much mortgage you can afford click here for our Mortgage Calculator.

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Pre-Qualification
If you're just starting to shop for a home we suggest you complete our quick pre-qualification application. Pre-qualification will help determine the amount of mortgage you may be approved for and allow you to shop with confidence within a pre-determined price range. Contact us to get started.

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Mortgage Programs
Our various mortgage programs provide a variety of competitive market rates to fit your individual needs. As mortgage rates are subject to change frequently we ask that you please contact us for current rate information.

Our mortgage programs provide:

Low application fees

Fast decision times

Low down payment options

Reasonable closing costs

Weekly, biweekly, and monthly payment options*

Automatic payment option**

Rate buy-down options

No prepayment penalties

Mortgage Life and Disability Insurance options

* Depending on the term of your loan, weekly or biweekly payments can substantially decrease the amount of time required to payoff your outstanding mortgage balance. We'll even change your selected repayment option during the loan term if that's what works for you. Some restrictions may apply.

** Enjoy the convenience and security of knowing that your mortgage payment will always be on time with our automatic payment option. As an added bonus, you qualify for a VIP interest bearing checking account with no monthly service fee and no minimum balance requirement when you set-up automatic payment of your Katahdin Trust Company mortgage from your VIP checking account.

Fixed Rate Mortgages
Available for a variety of terms, our traditional fixed rate mortgage provides you with a guaranteed interest rate for the life of the loan. This is an excellent option for those who plan to keep their home for a long time or who don't predict much change in their income. Contact us to get started.

Adjustable Rate Mortgages
Adjustable Rate Mortgages, referred to as ARMs, can be an excellent choice of financing under certain conditions such as short-term home ownership, rising income expectations, and during higher interest rate environments. These are an excellent option for those who plan to keep their home for a short period of time or who predict that their income will grow. Available for a variety of terms, our ARM mortgages provide competitive market rates with competitive term adjustments and lifetime interest rate caps. Contact us to get started.

Construction Loans
If you're looking to build your new home our construction loan programs can be tailored to fit your needs. Our flexible approach to construction financing makes the process simple and hassle free. We offer single-closing programs that guarantee the terms and conditions of your permanent financing and we'll work with you throughout the project to help make the process easy. During the construction period monthly payments of interest only are charged on the oustanding principal balance. Contact us to get started.

Balloon Loans
Balloon loans are offered for a variety of terms. This is an excellent option for those who want the affordability of a lower monthly payment and the security of a fixed rate as the balloon term can be matched to the length of time they expect to keep their home. Weekly, biweekly, and monthly payment options are available. Contact us to get started.

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Quick Steps to Owning Your New Home:

1) Contact a mortgage specialist at Katahdin Trust Company or view our online mortgage information to learn about financing options and how to get started.

Complete a quick Pre-qualification Application to determine the amount of mortgage you may be approved for, allowing you to shop with confidence within a pre-determined price range.

2) Start looking for your new home

Select a Realtor or builder to help you create your home-buying "wish list" and then research the local real estate market.
Your may want to look at several properties before you find your dream home.

3) Negotiate your sale price

Make an offer and counter-offer if needed
Settle at or below the amount for which your were pre-qualified

4) Make formal application and close on your loan

Contact your Katahdin Trust Company mortgage specialist to complete the application process.
Provide us with your purchase and sale contract and all material pertaining to the property you are purchasing.
Wait while we complete the necessary underwriting of your request.
Attend the loan closing at Katahdin Trust Company. (It usually takes 30 days or less from formal application to closing.)

5) Move into your new home

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Application Checklist

We want to make your application process as easy and convenient as possible. So, when you are ready to submit your formal application, collect the following information and bring it with you when you meet with us.

Be sure to include both borrower and co-borrower information.

W-2 statement for the last 2 years, or other income verification information, and your most recent pay stub(s). If self-employed, copies of your last two year's tax returns with supporting schedules and current Personal Financial Statement.

Names and addresses of your employers for the last two years.

Names and addresses of all landlords for the past two years.

List of assets - what you own. Cash value of life insurance policies; make, model, year and value of vehicles; depository institution names and addresses, account numbers, and current balances of all deposit and/or investment accounts or copies of your last two month's statements.

List of liabilities - what you owe. Financial institution names and addresses, account numbers, monthly payment amounts, and balances for all outstanding personal and auto loans; credit cards; real estate owned; and any other installment payments (including alimony/child support payments).

Copy of the purchase and sale agreement on the home being purchased.

Legal description of the property being purchased.

Construction estimates, permits, plans, and specifications or other documents related to proposed new construction (if applicable).

(This checklist is a general overview of the information required for a formal mortgage application. Individual situations may require additional documents prior to making a credit decision.)

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All loans subject to credit approval

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