Home Loans
Need a Home Loan? We can help.
Whether it's to buy that first home, move up to the next one, or refinance an existing mortgage, our friendly staff and competitive terms will make the move a smooth one. We also have some nice home equity alternatives for those smaller projects.
Purchasing a Home
City State Bank new home financing plans include the following features:
- Financing for first homes, retirement homes, vacation homes and investment properties.
- Reduced out-of-pocket costs, competitive rates, a zero-point option and a no-cost, 60 day rate lock option.
- Low down payment options on our fixed rate mortgage products.
- Fast loan decisions and expedited closing. What's more, upon approval, City State Bank can arrange your title work and closing quickly and efficiently.
- Professional mortgage counselors. A City State Bank loan officer will help you make key decisions, such as the type of loan that makes sense for you.
For more information contact our loan department.
Refinancing A Home
Refinancing an existing mortgage is a popular option for home owners who want lower monthly payments, a shorter mortgage loan term, or equity for home improvements or other needs. When you refinance, you essentially take out a new mortgage to replace the one you currently have.
When Should You Refinance?
Most people will tell you that it's best to refinance when you're sure you can decrease your interest rate somewhere between one and two percentage points. You should also consider how much it's going to cost you up front to refinance (i.e. closing costs).
Benefits of Refinancing
- Your overall monthly payments may be reduced due to a lower interest rate if the loan term remains the same.
- You may shorten the term of the loan. This may mean higher monthly payments, but because you'll be paying off your mortgage sooner and paying less interest, the equity in your home will build up faster.
- You may want to combine two existing mortgages into one new mortgage, possibly with a lower interest rate.
- You may want to use the equity in your home for home improvements or other financial needs.
For more information contact our loan department.
First Time Buyers
What is a mortgage?
A mortgage is a loan which is secured by real property. Most people use mortgages to purchase or refinance their home. As with other loans, you must apply for a mortgage approval. The amount you can borrow depends on several things, such as your income, your total debt and your monthly expenses.
Once your mortgage is closed, you receive the total amount of the loan at once, which is used to pay the seller (in a sale transaction) or pay off any existing loans on the property (in a refinance transaction). You then repay the loan in monthly payments according to a predetermined schedule. Most mortgages today are for periods of 15, 20, or 30 years.
To determine the right type of mortgage for your needs, you should consider the following:
- How much cash you have available for the down payment and closing costs
- Whether you think interest rates will rise or fall
- How long you plan to stay in the home you are purchasing or refinancing
What you should understand
Closing Costs - There are several kinds of fees associated with a mortgage. Many lenders charge an origination fee and a processing fee. Other fees associated with loan closing include, but are not limited to, your attorney's fees, filing fees, mortgage taxes, title search and title insurance. You may also be asked to pay real estate taxes and/or establish escrow accounts for real estate taxes and home owner's insurance.
Annual Percentage Rate (APR) - Annual percentage rate or APR is the actual cost you are paying for the mortgage loan. The APR reflects the cost of your mortgage loan as a yearly rate. It will generally be higher than the interest rate paid on the mortgage, and any mortgage insurance premiums are considered when calculating APR.
Common Mortgage Types
- Fixed Rate Mortgages
- Balloon Mortgages
- Adjustable Rate Mortgages
- Conventional Mortgages
For more information contact our loan department.
Home equity
Financial advisors often recommend a home equity loan or line of credit as the best way to finance a major purchase like a home addition or a child's education. City State Bank's many advantages make it an even better way.
Why you should get started today
It's Smart
Home equity loans and lines of credit are a low-cost way to borrow, a privilege just for homeowners. Interest rates are lower than most credit cards or other types of consumer loans and 100% of the interest is usually tax-deductable. (Consult your tax advisor.)
It's Affordable
At City State Bank, monthly payments are lower than those offered by many other financial institutions.
It's EASY!
We make obtaining a home equity loan or line of credit as easy as possible. We will arrange a closing date that is convenient for you.
Choose the right one for you
Home Equity Loan
Use your equity to obtain a loan if you need a certain amount of money all at once. The interest rate is fixed and your payments will be the same each month.
Home Equity Line of Credit
Use your equity to obtain a line of credit if you prefer to have ongoing credit available that you can access multiple times, as you need it. The interest rate is variable and your monthly payments will differ depending upon the amount you borrow each month.
For more information contact our loan department.