Your first home purchase will be one of the bigger events of your life. Often, your home purchase is the result of several factors that are both emotional and practical. It’s a commitment to your chosen hometown or to where you grew up if you decided not to relocate. Feeling confident enough to buy a […]
Assistant Vice President
Residential and Consumer Lender
Melynda is an innovative loan originator with 18 years of banking experience. Her primary goal is to make her customers comfortable during the mortgage application process by being reliable, efficient and confidential. Committed to providing the highest quality of service to her customers, Melynda is regarded as a respected residential and consumer lender. An active community member serving on the Board of the Northeast Kingdom Chamber and secretary of the St Johnsbury Meals on Wheels. Melynda is also a Relay for Life volunteer and looks forward to the event each year. A mother of three and sports enthusiast, she resides in Burke.
“My husband and I have worked with Melynda at Union Bank to get both a construction loan and a mortgage. She has been there for us every step of the way and has made the loan process as easy and stress-free as possible. We have been so impressed by the customer service at Union Bank and highly recommend them.”
– Anna Driscoll/Luke Allen, St. Jounsbury
Mortgage Loan FAQs
How do I know how much house I can afford?
Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.
What is the difference between a fixed-rate loan and an adjustable-rate loan?
With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.
How is an index and margin used in an Adjustable Rate Mortgage?
An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).
How do I know which type of mortgage is best for me?
There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Union Bank can help you evaluate your choices and help you make the most appropriate decision.
What does my mortgage payment include?
For most homeowners, the monthly mortgage payments include three separate parts:
- Principal: Repayment on the amount borrowed
- Interest: Payment to the lender for the amount borrowed
- Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
How much cash will I need to purchase a home?
The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
- Earnest Money: The deposit that is supplied when you make an offer on the house
- Down Payment: A percentage of the cost of the home that is due at settlement
- Closing Costs: Costs associated with processing paperwork to purchase or refinance a house