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Mortgage Loans

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 an easy process from start to finish. And, our response time is quick. In most instances, you can have your check in hand within 30 days of receiving your completed application.

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

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. Even if interest rates should increase, your mortgage interest rate will remain the same.

  • Fixed payment
  • Guaranteed interest rate for the life of the loan
  • Low down payment options
  • No prepayment penalties
  • Fast decision times

Flexible Options

  • Variety of terms
  • Weekly, biweekly, and monthly payments1
  • Automatic payments2
  • Rate buy-down options
  • Mortgage Life and Disability Insurance and Secure12 available
  • Escrow account for taxes and insurance available
  • Minimum loan amount is $2,800
1Depending on the term of your loan, weekly or biweekly payments can substantially decrease the amount of time required to pay off 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.
2Enjoy the convenience and security of knowing that your mortgage payment will always be on time with our automatic payment option. Whether you want weekly, biweekly or monthly, we'll automatically pay your mortgage from your checking account for you, no checks to write! 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 an automatic payment of your Katahdin Trust Company mortgage from your VIP Checking Account.
Subject to credit approval.

An Adjustable Rate Mortgage (ARM) is an excellent choice for those who plan to keep their home for a short period of time or who predict that their income will grow. Also suitable during higher interest rate environments.

  • Competitive market rates
  • Low down payment options
  • Fast decision time
  • No prepayment penalties

Flexible Options

  • Variety of terms
  • Automatic monthly payments1
  • Rate buy-down options
  • Mortgage Life and Disability Insurance and Secure12 available
  • Escrow account for taxes and insurance available
  • Minimum loan amount is $2,800
1Enjoy the convenience and security of knowing that your mortgage payment will always be on time with our automatic payment option. We'll automatically pay your mortgage from your checking account every month for you, no checks to write! 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 an automatic payment of your Katahdin Trust Company mortgage from your VIP Checking Account.
Subject to credit approval.

Afford a home of your own.

  • Great fixed rate. 0.25% lower than our fixed rate mortgage
  • Fast credit decision. Get approved quickly with local servicing
  • Quick turnaround. Close loan generally within 30 days

This type of loan provides reduced closing costs and reduced down payment with private mortgage insurance to new homeowners who may not qualify for a conventional mortgage loan.

Choose from a variety of payment terms along with the flexibility of weekly, bi-weekly or monthly payments. We can even set-up your payment to be automatically transferred from your Katahdin Trust Company checking account, so you'll never have to worry about a late payment. Enjoy these other great benefits:

  • No application fee
  • No seller points required
  • No recapture tax liabilities when you sell your home
  • No home inspection (although we always recommend one)
  • Free flood determination
  • Free credit bureau report

Do I qualify?

To qualify for a First-Time Homebuyer Mortgage:

  1. You cannot have owned a home in the past 3 years*
  2. You meet the following household income limits:

    AROOSTOOK COUNTY & PATTEN AREA
    1-2 persons < $65,880
    3 or more persons < $76,860

    BANGOR AREA
    1-2 persons < $67,600
    3 or more persons < $77,740

    SCARBOROUGH AREA
    1-2 persons < $85,160
    3 or more persons < $97,930
Subject to credit approval. Income limits effective 7/13/2013. Homebuyer education is required. Up to five acres of land allowed. Existing structures only. Our First-Time Homebuyer Program is not associated with the Maine State Housing Authority. *This includes a mobile home and the land it sits on, but if you have owned a mobile home only, not including any land, you do qualify.

Building a new home or camp? Take the stress out of your building project with our flexible approach to construction financing. We make the process simple and hassle free because construction and permanent financing are all rolled into one loan with only one loan closing.

  • One time closing
  • Interest only payments during construction
  • Fixed principal and interest payments following construction period
  • Fixed rate for term of the loan

Ready to get started? Review our construction application checklist. We'll guide you every step of the way from land purchase to the completion of your home project.

Types of Projects

  • Stick built
  • Modular
  • Home renovations/improvements
  • Double wide/Mobile home
The average construction period ranges from 6 to 9 months.

Maximum Loan Amount

Is based on the following percentages of the appraised value or project cost, whichever is less:

  • 80% of a complete construction project
  • 80% of a modular/double wide mobile home project
  • 80% of a home improvement/renovation project

Fees and Charges

A complete estimate of costs will be provided within three days of application. The construction fee will be:

  • 1.0% of the loan amount with a six-month construction period
  • 1.5% of the loan amount with a nine-month construction period

Minimum fees do apply depending on type of construction. If the original construction term is exceeded, a $200 extension fee will be assessed. Two draws per month are allowed; $50 per additional draw.

Subject to credit approval.

Contact Us

Please call your local branch for current rate information or to speak with a mortgage specialist today.

Application checklist

All loans are subject to credit approval. Conforming Loan Payment Notice 

Community Banking, since 1918.