Energy Relief

Bank continues Energy Relief Program

SPRINGFIELD Although the energy industry forecasts a slight easing of home heating costs this year, there is still uncertainty about how much it will cost homeowners to stay warm this heating season. Many people are still wondering how they're going to pay their heating bills.

In response to what could be some very tough situations for area residents, Hampden Bank has decided to continue its Energy Relief Program introduced last year. The program is designed to give mortgage customers an option to make a smaller "interest only" payment on their mortgages for the duration of the heating season.

"We are reacting to the needs of our customers," said Senior Vice President Robert Michel. "While fuel prices have come down, filling up your car or paying the heating bill is still painful. With this program we allow our borrowers to make an interest only payment. They'll be able to use the savings each month to apply toward their heating costs," Michel added.

The program is simple, but the savings can be profound. For example, a $150,000.00 loan balance with a 20-year remaining term at an average 6.5% interest rate would yield a savings of almost $250 per month.

After the heating season ends in April, the borrowers 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 $14.00 per month.

"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.