Mortgages
At Merchants Bank, we make mortgages simple. If you are buying a home or looking to refinance, our experienced lenders provide helpful, personal service.
We maintain and service our residential mortgages in-house – keeping your mortgage in local hands, in Vermont. You can apply on-line or at a branch near you, and there’s no application fee.
The best part is we are here, in your neighborhood, whenever you want to pick up the phone or stop by. We are happy to answer your questions, help you choose the best loan for your situation or offer lending advice.
Our products include:
Fixed-rate mortgages
These loans can be used to purchase or refinance your primary residence or a second home suitable for year-round occupancy. They feature:
- Low fixed rates
- Bi-weekly payment options (may reduce total interest paid and time to pay off loan)
- Cash-out refinance option available
- Maximum loan-to-value ratio of 80% of appraised value
- Maximum loan amount of $417,000
Adjustable-rate mortgages (ARM)
An adjustable-rate mortgage can be used to finance your primary residences or a second home suitable for year-round occupancy.
- It may increase your buying power if initial rate is lower than fixed rates
- Maximum loan-to-value ratio is 80%
Learn more about our Adjustable-rate mortgages.
Free “You Win” Rate Protection Program
At Merchants Bank, you have the option to lock in the current interest rate for 60 days, free of charge – at any time from when you first submit your application to when your closing interest rate is set. You can lock in the rate during the online application process or by contacting your loan officer.
Whether or not you lock in your rate, the closing interest rate will be set 10 days before your scheduled loan closing date.
- If your rate is locked, and rates are higher when your closing rate is set, we will honor your lower locked-in rate.
- If rates are lower when your closing rate is set, you will receive the lower rate.
- If your rate isn’t locked, you’ll receive the rate in effect at the time.
After the loan closing date is scheduled and your closing interest rate is set, you will be charged a $250.00 re-documentation fee, plus any additional fees incurred for updating title work, for any subsequent changes you make which affect your loan closing date and/or documentation.
With a bi-weekly mortgage you make one-half of your monthly mortgage payment every two weeks, for a total of 26 bi-weekly payments each year. This reduces your principal balance more quickly – reducing the total interest paid and the length of time to pay off the loan. The bi-weekly payments will be made automatically from your Merchants Bank checking account.
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Questions?
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How do I apply for a loan?
How do I apply for a loan?
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How do I get pre-approved?
How do I get pre-approved?
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Do I need to have a Merchants Bank account to apply?
Do I need to have a Merchants Bank account to apply?
No. However, we offer a discounted interest rate if you have your monthly payment taken directly from a Merchants Bank account.
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Do you keep the mortgages in Vermont?
Do you keep the mortgages in Vermont?
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Do I have to apply online?
Do I have to apply online?
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Do I have to pay to lock in my interest rate?
Do I have to pay to lock in my interest rate?
Absolutely not, we have a free rate lock program that guarantees your interest rate for 30 days. Check our rate lock policy for full details.
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Do I need to live or work in Vermont to open an account or loan?
Do I need to live or work in Vermont to open an account or loan?
Merchants Bank opens accounts or loans for people living or working in Vermont or communities adjacent to our offices.
Mobile Banking
Make payments, check balances and more from your smartphone. Download our free Mobile Banking App here. ($3 monthly fee applies to Free Checking for Life account holders.)
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Home Equity Loans
Whether it’s home improvement, education expenses or a vacation,
put your home’s equity to work for you. Apply online.


