Construction
Piedmont Federal offers two adjustable rate mortgage options for those who desire a lower initial rate. An adjustable rate mortgage or ARM, is a home loan with an interest rate that changes periodically, meaning the monthly payments can increase or decrease.
An ARM can help you save money in the early days of your loan by offering a lower initial rate than a fixed-rate mortgage.
Piedmont Federal offers two adjustable rate mortgage options for those who desire a lower initial rate. An adjustable rate mortgage or ARM, is a home loan with an interest rate that changes periodically, meaning the monthly payments can increase or decrease.
An ARM can help you save money in the early days of your loan by offering a lower initial rate than a fixed-rate mortgage.
- Initial Interest Rate is the Secured Overnight Financing Rate (SOFR) Daily Average Rate + 1% margin
- The interest rate is fixed for the first five years and adjusts every year thereafter. The first adjusted interest rate has a cap of +/- 2.00% and subsequent adjusted interest rates cap at +/- 2.00%. The lifetime maximum rate is the initial interest rate +/- 5% over the duration of the loan, with the lowest rate floor at 4.00%
- This loan may be for a primary residence or second home and may be used for a single-family detached home, condominium or townhouse. (Manufactured homes and mobile homes are not eligible.)
- First-time homebuyers are eligible for this loan product.
- ARM products are not eligible for the Homebuyers Dream Program.
The 10-year adjustable rate mortgage (ARM) is offered to qualified applicants at one-half percent below our current 30-year fixed rate mortgage product. This loan is popular with buyers who plan to be in their homes less than 10 years because of the lower interest rate.
It provides you the security of an interest rate and a monthly payment that is fixed for the first 10 years; then, makes available the option of paying the outstanding balance in full or elect to amortize the remaining balance over the final 20 years at our current 30-year fixed rate, but no more than 3% above your initial interest rate.
- This product is offered to qualified applicants at ½% below our current 30-year-fixed rate mortgage product.
- The interest rate is fixed for the first 120 payments (10 years).
- After 10 years, the interest rate will be adjusted to our current 30-year fixed rate, not to exceed 3% above the introductory rate, but not less than the initial interest rate. Your payment of principal and interest will be adjusted accordingly beginning with the 121st payment and will remain unchanged for the remaining term of the loan (20 years).
- This loan may be for a primary residence or second home and may be used for a single-family detached home, condominium or townhouse. (Manufactured homes and mobile homes are not eligible.)
- First-time homebuyers are eligible for this loan product.
- ARM products are not eligible for the Homebuyers Dream Program.
Want to build your dream home and enjoy peace of mind during the process? Our Construction-To-Permanent Financing may be the best option for you.
- With only one application, one closing and one loan, you save money.
- Save money by paying closing costs only once, not twice.
- Rate protection available at time of application for permanent phase.
- Draw request and inspections that meet both the builders and your needs.
- Make interest-only payments on funds that have been disbursed during your construction period.
- Ask us to help you determine how much home you can afford.
- Select your builder, finalize your plans and write your offer to purchase.
- Apply for and closing your construction to perm loan with Piedmont Federal Bank.
- At closing, Piedmont Federal Bank will add any unpaid balance owed on the lot to your loan.
- We will set up your line of credit that holds the funds needed based on the contract with your builder.
- As your home is built, you/your builder can request up to six draws for payment. Each draw covers only the work completed and materials installed to date based on that draw request.
We work directly with your builder to draw the funds specified for the work completed.
The bank employs a local company to inspect the construction site to verify that work being requested for payment has been completed.
For the final draw, a copy of the Certificate of Occupancy and a final inspection must be provided. The appraiser for the bank also makes a final inspection and certifies that your home has been completed per the plans and specifications you signed at the time of your application.
The bank will convert your existing line of credit to a permanent loan, set up an escrow account and modify the terms to the loan if necessary.
You are now ready to move in to your new home.
Permanent Financing Program with 9 Month Rate Lock
Get peace of mind with loan approval and an interest rate locked for 9 months before you begin construction. Our commitment program locks in your mortgage rate for your permanent financing after the completion of your home, beyond the normal 60 days, protecting against interest rate changes.1
A 1% commitment fee (which replaces the origination fee usually paid at closing) allows the customer to lock our current basic rate in for 9 months for the term chosen.
The commitment is available for 30-, 20-, 15- or 10-year home loans.
Specially designed for borrowers that have received approval for Down Payment Assistance program.
One of the primary barriers to homeownership for first-time home buyers is saving money for the down payment and closing costs. To assist with this gap seen in our assessment area, Piedmont Federal is offering a product that is specially designed for low-to-moderate income borrowers that have received approval for down payment assistance from an approved program. The Homebuyer Dream Program also provides closing cost assistance to credit worthy first-time homebuyers making less than 80% of the median income based on the designated Bank’s Assessment area.
Each applicant is required to receive home buyer education and counseling, before and after the mortgage purchase, to acquire the knowledge and confidence needed to navigate the home buying process and become successful homeowners.
- Designed for first-time homebuyers. Loan requests are limited to the down payment program that is used.
- No loan origination fee.
- Appraisal fee refunded at loan closing.
- An affordable monthly payment with our competitive interest rate could mean a monthly payment lower than your current rent.
- Private Mortgage Insurance Waived.
- Use “non-traditional” credit sources such as proof of timely rent payments, utility payments and other monthly obligations to compensate for a lack of credit history.
- Must be a primary residence and not owned a home in the previous three years.
- Single-family detached and attached (manufactured housing, mobile homes and a-typical homes are not eligible).
- 30 year fixed rate term only.
- A minimum of $1000 or 1% must come directly from the buyer and Down Payment Assistance may not exceed guilelines set forth by the program.
- Pre-Purchase and Post-Purchase Education is required per guidelines set forth by approved city/county program.
- Most recent tax returns required to determine income eligibility.
- Mortgage payment must be drafted from a Piedmont Federal Deposit Account (Checking, Savings, Money Market, CD or IRA) for which you automatically qualify.
- Loan Approval subject to standard underwriting guidelines.
- Loan requests are limited to the down payment program that is used.
• 359 payments of $324.30 at an interest rate of 6.750%
• 1 payment of $323.91 at an interest rate of 6.750%
This payment schedule is based on a $50,000 loan on a $200,000 property in Forsyth county, NC. If an escrow account is required or requested, the actual monthly payment will also include amounts for real estate taxes and homeowner's insurance premiums.
The interest rates, annual percentage rates (APRs), and fees are subject to change without notice.
Piedmont Federal strives to make home ownership as easy and affordable as possible for qualified, credit-approved first-time homebuyers.
The benefit of a lower down payment requirement as well as minimal fees at closing and are available to first-time homebuyers who have not previously owned a residence. Applicants must have a record of paying their bills on time. If little or no credit has been established, payments made on time for insurance, power, cable, telephone, etc., will be considered for credit purposes.
A verification of rent is required for applicant(s) currently renting. No prior bankruptcies will be allowed. Each applicant will need to complete a short program on home ownership which will be arranged through Piedmont Federal. The program covers many important topics such as budgeting, maintaining good credit, home maintenance and other aspects of home ownership.
Plus first-time homebuyers qualify for a free Pinnacle checking account, from which you can have your loan payments automatically deducted.
- No loan origination fee.
- Appraisal fee refunded at loan closing.
- Accepts loan requests: $400K up to 95% and $450K up to 85% loan-to-value, with no PMI (private mortgage insurance).
- Must be for a primary residence and used for single-family detached, condominium, townhouse or modular homes. (Manufactured housing, mobile homes and a-typical homes are not eligible.)
- Borrower’s total monthly payments (home loan, auto loan, credit card payments, etc.) should not be more than 40% of the borrower’s gross monthly income.
- Borrower must provide proof of employment and income (Income sources include full- and part-time salary, bonuses and commissions, social security, retirement, pension, alimony, child support).
- A minimum of 10% must come directly from the buyer to avoid Private Mortgage Insurance and may come from a gift.
A fixed rate mortgage provides you with the security of a monthly payment that doesn’t change. Fixed rate loans are one of the most popular loan options today.
Piedmont Federal offers four terms for a fixed rate mortgage:
30-Year Fixed Rate
By choosing a 30-year fixed rate loan, you will have the lowest monthly payment of all the fixed rate loans we offer.
20-Year Fixed Rate
By choosing a 20-year fixed rate loan, you will have the monthly payment that is greater than the 30-year fixed rate, but you will be building equity in your home faster.
15-Year Fixed Rate
Choose a 15-year fixed rate loan if you’re comfortable with a higher payment and you will have the benefit of substantial interest savings.
10-Year Fixed Rate
If you’re comfortable with a higher payment and wish to pay off your loan quickly – the 10-year fixed rate loan may be exactly what you are looking for.
Updating your kitchen? Need money for a new car? Seeking a little extra cash to help with college tuition or expenses? Or just want to consolidate debt? If so, then the Piedmont Home Equity Line of Credit/Home Equity Loan may be right for you.
Enjoy the flexibility of using your home equity line for multiple projects or cash needs. This revolving, open-ended loan allows you to borrow the funds, repay and borrow again.
- Finance up to 85%1 of your home’s value (primary residence or second home).
- Credit line amounts range from $10,000 to $500,000.
- Standard loan costs paid by Piedmont Federal2. No maintenance fees, no prepayment penalties and interest only payments during the draw period.
- The loan rate is the Prime Rate as published in the Wall Street Journal and will vary, but will be no less than 3% or greater than 16%.
- The interest you pay on your equity line may be tax deductible. (Consult a tax advisor regarding the deductibility of interest.)
- With our home equity line, you’ll have the ability to access funds, up to the amount of your credit limit, by simply writing a check or transferring funds to your Piedmont Federal checking account through online banking. No office visits, no waiting – use the money you need, when you need it, and pay it back on a monthly basis.
- The minimum draw amount is $300.
- You can also use the Piedmont Home Equity Line of Credit as overdraft protection for your Piedmont Federal checking account.
- The ability to open an equity line is subject to loan approval and a current appraisal.
Have questions? Reach out to your local banker for any assistance at (336) 770.1000.
2 Borrower may be responsible for title insurance cost and/or attorney fees in excess of $500. Borrower is responsible for all fees associated with temporary financing.
Piedmont Federal offers personal loans for your convenience. Whether you are seeking extra funds for unexpected expenses or for debt consolidation, we provide competitive rates, a variety of terms, and a simple application process.
Refinancing a loan from a higher fixed rate to a lower rate, or from an adjustable-rate loan to a fixed-rate loan, might mean substantial savings for you in the long run and guarantee your monthly payments won’t increase.
You may want to refinance if you’ve built up enough equity in your home, and you need extra funds for home repairs or other financial needs.Piedmont Federal offers two ways to refinance your mortgage; both will replace the terms of an existing mortgage:
Refinance Existing Balance
A “rate and term refinance” is the refinancing of your existing mortgage for an amount equal to or less than the existing outstanding loan balance plus additional settlement costs.It is done primarily to lower the interest rate charge on the loan and/or to change the term of the mortgage (usually to shorten your loan term) while keeping the existing balance unchanged.
Refinance With Cash Out
A “cash-out refinance” allows you to tap into the equity in your home. You will obtain a new mortgage that provides funding in excess of paying off the existing loan balance and settlement costs.
If you elect to take “cash out” when refinancing your existing mortgage, your new loan will include the amount of the original loan plus the desired cash-out amount.
Expect the size of your mortgage and mortgage payment to increase in return for the cash.
Note: If you’re interested in borrowing against your home’s available equity to pay for other expenses, you also have the option to take out a home equity line of credit/home equity loan. It is a separate loan with its own term and repayment schedule, and is considered a second mortgage.
