Hampden Bank offers Energy Relief Program
SPRINGFIELD For the fourth consecutive year, Hampden Bank is offering its mortgage customers the opportunity to participate in its Energy Relief Program the program designed to give customers the option to make smaller "interest only" payments on their mortgages for the duration of the heating season.
"With the experts predicting heating costs to double this year the program couldn't come at a better time for many of our customers," Senior Vice President Robert Michel said. "Although in past years the program has been well-received, we expect participation this year to be off the charts. We want to get the word out to our customers early so they can take full advantage of this opportunity."
With increases in energy, fuel and food costs skyrocketing, the uncertainty about how people will pay their heating bills is compounded by much anxiety this season. Many have already experienced "sticker shock" as they begin to fill their oil tanks with little relief in sight.
Hampden Bank's program is simple, but the savings can be profound. For example, a $150,000 loan balance with a 20-year remaining term at an average 6.5 percent interest rate would yield a savings of almost $250 per month. After the heating season ends in April, the borrower's loan would be "recast" to amortize the new loan balance. In the example above the recast payment would increase the monthly payment on the loan by about $14 per month.
"As a local community bank we have the ability to react quickly to the needs of our customers. This program will help people when they need it most. That's what makes a bank like Hampden Bank in tune with the community it serves," Michel commented.