Online Banking

Mortgages

Whether you're a first time homebuyer, or a homeowner looking to build a new home, refinance or expand your existing home, we'll explain ALL of your options and find the program that best fits your needs. Come to Putnam Bank and see why we are consistently ranked as one of the top lenders in Windham County.

• Free Pre-Qualifications - We'll help you determine the home price that best fits in your budget. In today's market, the value of being pre-qualified is greater than ever. Don't begin your search for a home until you talk with us.
• Convenient Service - Come to our office, or we'll visit yours. Our dedicated Personal Banking Account Executives are available to sit with you during or after regular banking hours, at our place or yours.

For application information, please contact one of our Account Executives:

• Sherry Greene (Northern Windham County)
• Linda Brule (Southern Windham County & Northern New London County)
• Leslie Robbins (Southern New London County) 
  • or for even greater convenience, visit our Online Loan Center and apply online.

Here are some helpful hints when applying for a residential mortgage.

Putnam Bank offers the following mortgages:

• Fixed Rate Mortgages - monthly or bi-weekly payment option
• Adjustable Rate Mortgages
• First Time Buyer
• Flex Pay Payment Options
• Rehabilitation Mortgages (R.O.M.E)
• CHFA, FHA, VA & USDA Rural Housing Loans
• Construction Loans
• Land Loans
• Reverse Mortgages
• Insured Mortgages
• Jumbo Mortgages
• 90% Cash Out Refinance
• Equity Loans to 100% LTV
• Home Equity Line Program (H.E.L.P.) to 100% LTV

Fixed Rate Mortgages

In an unstable financial world, a fixed rate mortgage from Putnam Bank is a great way to put some stability into your finances.  With a fixed rate mortgage, we offer flexible repayment terms.

Fixed rate Jumbo Mortgages up to $500,000 are also available.

Bi-weekly Fixed Rate Mortgages

With a Bi-weekly fixed rate mortgage you:

• Save thousands of dollars in interest over the life of your loan.
• Have your loan paid more quickly than a traditional monthly repayment plan.
• Enjoy the convenience of automatic payments.

Bi-Weekly Payment Due Date Calendar

Here are some helpful hints when applying for a residential mortgage.

Adjustable Rate Mortgages (ARM)

We'll not only give you a great ARM, we'll throw in a helping hand. Putnam Bank offers a variety of Adjustable Rate Mortgages to meet your individual needs:

• ARM (1-1) annual rate adjustments
• ARM (3-1) fixed rate for first 3 years, annual rate adjustments thereafter
• ARM (5-1) fixed rate for first 5 years, annual rate adjustments thereafter
• ARM (7-1) fixed rate for first 7 years, annual rate adjustments thereafter
• ARM (10-1) fixed rate for first 10 years, annual rate adjustments thereafter
• Flex Pay Payment Options - Make interest-only payments for a fixed period of time. This option is available for 3, 5, 7 and 10-Year ARM programs. Our Flex Payment option is also available for the R.O.M.E. and 90% Cash Out Refinance Programs. Some restrictions may apply.

To help determine your likely maximum affordable home price, visit our Online Loan Center!

First Time Buyer/Government Programs

Putnam Bank participates in both the Connecticut Housing Finance Authority and Down payment Assistance Programs for the first time homebuyer. These two programs allow first time buyers, depending on the situation, the ability to obtain a fixed rate mortgage at below market rates and sometimes to borrow the down payment and closing costs. There are restrictions regarding income and home purchase price with these programs.

We also offer loans insured by the Federal Housing Authority and the Veterans Administration, which are not exclusively for first time buyers. These programs allow lower down payments and higher qualifying ratios than conventional financing.

Here are some helpful hints when applying for a residential mortgage.

To apply for a mortgage online, or check the status of your online loan application visit Putnam Bank's Online Loan Center.

Flex Pay Payment Options

With a Flex Pay 30 Year Mortgage you pay ONLY the interest due on the mortgage for the initial fixed period of the selected adjustable rate program. The mortgage reverts to a fully amortizing mortgage for the remaining term of the loan after the first interest rate adjustment.

You benefit in the following ways:

• You make smaller payments during the fixed period of the loan.
• Qualifying ratios are based on the interest-only payment, which means you can afford a larger mortgage.
• During the interest-only period you can choose to make principal payments to reduce your future payments.
• You may be able to take advantage of increased mortgage interest tax deductions.*

The Flex Pay Mortgage is a great choice for people:

• Purchasing a second home.
• Who need a "jumbo" mortgage.
• Who anticipate moving within a certain time frame.

Rehabilitation (R.O.M.E.) Loans

Putnam Bank's R.O.M.E. (Rehabilitation Opportunities Made Easy) Loan is the perfect solution for the almost perfect house. With the R.O.M.E. Loan you can add on, improve and convert the 1-4 family house (owner-occupied) you want to buy or currently own into the home you've always wanted. Anticipated completion time for repairs or remodeling is 90 days or less in most cases. Licensed contractors, approved by the Bank, are required.

The R.O.M.E. Loan is designed for repairs/remodeling that exceed $10,000. The mortgage is fully funded at the closing, with a "holdback amount" determined by the rehabilitation costs. Monthly mortgage payments include principal and interest, even during the rehab phase. Holdback funds are placed in an interest-bearing Putnam Bank statement savings account; access to the account is restricted until all holdback funds are distributed. Progress payments are made from the savings account as work is completed, after inspection by the Bank's agent.

Putnam Bank also offers other mortgage options for repairs/remodeling expenses less than $10,000.

Here are some helpful hints when applying for a residential mortgage.

Construction Loans

Putnam Bank offers a wide variety of construction loans for single family, owner-occupied properties within our lending area, including:

• 10, 15, 20, 25, & 30-year Fixed Rate Construction Loans.  Rate is fixed for the life of the loan.  Monthly or Bi-weekly payment options.
• Any of our Adjustable Rate Mortgage Programs.

For your convenience, only one closing is required with any of our construction loan programs. Following a typical nine-month construction period of interest-only payments, the loan automatically converts to regular monthly or bi-weekly principal and interest payments. 

• 5% *down payment options available.
• Land and building packages available.
• Construction loans can also be used for additions and major remodeling projects.
• Local decision-making and experienced staff to assist you every step of the process from application through the final Certificate of Occupancy.
• A registered General Contractor is required in most cases. Putnam Bank also requires:
  1.)  A copy of the construction budget including specific purchase price, projected expenses and actual expenditures made to date on the project.
  2.) Copies of plans, specs, materials lists and a fully executed building contract.

You can apply in person with one of our Mortgage Originators or online at www.pbolc.com. 

*Other down payment options are available. An example of a 5% down payment option for a $100,000 loan amount, 9-month construction phase. 15- or 30-year repayment term with 0 points would be Interest payments due during the 9-month construction phase, followed by 180 monthly payments of $791.36 or 360 monthly payments of $585.04 respectively (consisting of principal, interest and private mortgage insurance). This example assumes an Annual Percentage Rate of 4.34% for 180 monthly payments and 5.35% for 360 monthly payments and is subject to change. Please refer to our Online Loan Center for current rates. Additional amounts may be required for taxes and insurance premiums and the actual payment obligation may be greater.

Land Loans

Putnam Bank offers two competitively priced financing options for your purchase of land, whether you are anticipating building in the near future or several years down the road - Fixed-to LTV 65% or fixed-to LTV 75%.

• Rates and terms vary depending on Loan to Value ratio.
• Maximum Loan to Value of 75%
• Property must be an approved building lot.
• Other terms available for commercial land.

Reverse Mortgages

A Reverse Mortgage enables homeowners 62 years of age or older to supplement their retirement income with tax-free cash. With a Reverse Mortgage, you don't make payments - you receive them. It's the perfect mortgage for people on a fixed income. This type of loan is not due or payable as long as you occupy your home as your primary residence.

There are many benefits, including:

• Proceeds are tax-free.
• No monthly mortgage payments are required.
• You can use the cash any way you choose.
• You can continue to own your own home.
• There are no income qualifications.

To qualify for a Reverse Mortgage you must:

• Be at least 62 years of age.
• Occupy your home as your primary residence.
• Own your home free of debt or have a small mortgage balance remaining.

For more information about Reverse Mortgages contact Kathy Corbine at 860-963-4953 x3011.

If you're 62 or older you may qualify.  Approval is subject to age and property qualifications.  Terms, fees and conditions may apply.  Homeowners Insurance is required. 

Special Programs 90% Cash Out

If you need cash, you can borrow up to 90% of the equity in your home. This program offers one convenient payment and potential tax benefits*.

This program offers a competitive rate without private mortgage insurance. Property must have been owned for a minimum of one year.

*Consult your tax advisor regarding the tax deductibility of mortgage interest.