How To Find the Right Loan Option for You
Whether you're a first-time homebuyer, looking to refinance, or planning to renovate your summer camp, there are different loan options available that can help you see your project come to life. The best place to get started is with your local lender, who can help you determine the best options for you depending on a number of factors including what the loan will be used for.
What can loans be used for?
You might be surprised to learn that people use loans to finance many different types of projects and purchases. Loans can provide funds for:
Loans can also be used for special life events such as taking that bucket-list dream vacation, paying for college tuition, paying for wedding expenses, purchasing new kitchen appliances, and so much more!
What are the different types of loans?
There are lots of different types of loans. Here are a few to help you start thinking about which loans you might be interested in learning more about.
A mortgage loan is an agreement between you and a lender to finance the purchase or refinance of a home. There are several types of mortgage loans to meet specific needs.
Home Equity Loan or Line of Credit
In contrast to a mortgage, a home equity loan is used when you already have equity in your property. Home equity is the value of your home minus the amount of your mortgage debt. You can borrow from your home equity in two different ways, as a line of credit or as a loan. A home equity loan is a one-time lump payment based on how much equity you have in your home. With this option, you can lock in your monthly payment and interest rate amounts. A home equity line of credit is when you get pre-approved for a specific amount of money that you can use when you need it, similar to how a credit card works. The line of credit is reusable, so as long as you make the payments, you can reuse your line of credit as often as you need. Many people use a home equity loan or line of credit to cover major life expenses from vacations to wedding expenses and even upgrading appliances and furniture.
A construction loan is a short-term loan that funds the building of a new home, camp, or other real estate projects such as an investment property, manufactured home, or condominium. During the construction phase, you can typically expect to make low-interest payments. After the construction project, the loan converts to a fixed-rate loan with a variety of terms available.
A personal loan is exactly what it sounds like...personal. Many people who take out a personal loan use the funds to pay off credit card debt, help manage unexpected expenses, take a vacation, or even make a special purchase. These loans have flexible terms that your local lender can walk you through.
Auto loans are a popular option for anyone looking to purchase a vehicle such as a new or used car, truck, van, or SUV. You can also opt for a recreational vehicle loan, which is used to purchase a boat, camper, motorcycle, snowmobile, or ATV.
Which loan option is right for me?
Choosing a loan can be a big process, which is why it’s a smart choice to choose a local lending expert. At Katahdin Trust, you can meet with experts who help you determine the best loan option for you and can help you through the application process. You will also benefit from local service, competitive interest rates, and a quick approval decision and closing. In most instances, you will have a check in hand within 30 days of submitting your completed application to Katahdin Trust.
You can easily apply online for home and camp purchases, refinancing an existing mortgage, home equity loan, home equity line of credit, and construction loans and a local lender will follow up with you regarding your application. You can also pre-qualify online to help determine how much you can afford when shopping for a home.
To get started, check out Katahdin Trust’s loan and construction application checklists to give you a jump start on the documents and other information you will need to gather. You can also check out current rates to get an idea about which loan options will be an excellent fit for you. Once you're ready to apply, the online application process takes about 20 minutes. If you’d like to speak with someone to go over your loan options, contact Katahdin Trust at 1-855-331-3221 and get connected with a loan specialist in your area. Katahdin Trust is a locally-owned and managed community bank with 16 full-service branches throughout the state of Maine.
All loans are subject to credit approval. Member FDIC. Equal Housing Lender. Property insurance is required.