Mortgage Types

Old National offers mortgage options for every lifestyle and budget.

We’re here to help with smart mortgage options, proven expertise and one-on-one personal service that makes you feel right at home.

Fixed-Rate Mortgage

If you’re looking for the security of a fixed interest rate and a variety of term options, a fixed-rate mortgage could be the key to your homeownership dreams. 

With an interest rate that remains constant for the life of the loan, a fixed-rate mortgage makes budgeting easy. Choose the term that works best for you, from 10 to 30 years.

• No "payment shock" as interest rates rise
• No prepayment penalty

A shorter term provides even more benefits:

• Enjoy lower interest rates
• Build equity faster
• Great refinancing option
• Pay less interest over the life of your loan

Balloon Mortgage

Whether you’re a first time homeowner planning to upsize, expecting to relocate in the future or you just need the budget flexibility, a balloon mortgage¹ may be the right fit for you.

A balloon mortgage is a short-term loan, 5 to 7 years, with a payment that is calculated on a term of 30 years. This loan typically provides buyers with a lower interest rate and the option to pay off or sell their home, refinance or convert their loan to a traditional mortgage at the end of the loan term.

• Start with low monthly payments
• Have money to grow for future plans
• Find the lowest initial interest rate
• Benefit from a fixed-rate with future options
• Increase your purchasing power

Adjustable Rate Mortgage (ARM)

An ARM is a mortgage loan with fluctuating monthly payments tied to an economic index. It may be an ideal choice if you:

• Plan to own your home for just a few years
• Expect a significant increase in future earnings
• Believe the prevailing interest rate for fixed-rate mortgages is too high

Construction Mortgage

Create your dream home or get started on that major addition or renovation.

• Avoid multiple closings and origination fees
• Enjoy rate-lock options and choose from a variety of permanent loan options

FHA Mortgage

A Federal Housing Administration (FHA) loan is great for first time home buyers and people without a lot of liquid savings.

• Accept a monetary “gift” from a relative or employer to help with closing costs
• FHA Loans are assumable, which could make your home easier to sell

VA Mortgage

For veterans, a VA loan is a terrific option.

• Enjoy 100% financing
• No cash reserves required after closing
• Some VA loans are assumable

How much can I afford?

As a general rule, your mortgage payment should not exceed 28% of your gross monthly income. Use our simple online mortgage calculators.