Whether you’re a first-time homebuyer or a seasoned house hunter, you can count on our local mortgage experts.
- Competitive rates for home purchase, refinance, or construction
- Available for primary residence, second homes, vacation homes, or investment properties
- Several financing programs available:
- Fixed rate mortgages
- Adjustable rate mortgages (ARMs)
- USDA Rural Housing Loans
- FHA Loans
- VA Loans
- First Time Homebuyer specials
- Construction Loans
- Helpful loan advisors with working knowledge of the Southern Illinois real estate market
- Refinance your current home to potentially lower your rate
- Repayment terms customized to fit your needs
- Local decision-making and processing
- Attentive, friendly service from start to finish
The fixed rate mortgage is the most common type of mortgage. In addition to being simple, it provides the peace of mind of a set monthly payment (principal and interest) that does not change over the term of the loan. The loan balance is reduced monthly over the set term of the loan, and there is no prepayment penalty for making additional payments to principal.
An adjustable rate mortgage allows the borrower to take advantage of short term rates, generally resulting in lower initial monthly payments than fixed-rate mortgages. The interest rate resets at the end of the term, usually resulting in a lower amount of principal to re-price, or refinance. This is ideal for someone who is interested in qualifying for a larger loan, lower payments, and the ability to save money in the short-term. Borrowers who are comfortable taking on risks or who feel their income will increase to cover possible payment increases often make this choice.
When interest rates drop by at least 1.00% below your existing loan rate, it may be time to refinance your loan. A lower interest rate means lower payments. Refinancing to a shorter-term mortgage can save you interest charges over the life of the loan — and help you pay your loan off quicker. Contact Farmers State Bank to help you determine if refinancing can help you.