CSB Offering a variety of attractive loan programs for buyers
UNION GROVE – As we enter the spring home buying/building season, Community State Bank’s Joe Canfield is a popular guy when it comes to discussing the local real estate market.
Is now a good time to buy/sell? How can I afford a home in this market? Where are interest rates headed? Why is inventory so low?
These are common questions that often don’t have easy answers.
“There’s no perfect time to buy,” said Canfield, CSB Assistant Vice President | Mortgage Loan Officer. “There’s going to be up markets. There’s going to be down markets.”
Higher interest rates have scared some potential buyers, who took advantage of historically low interest rates in 2021 when rates dipped below three percent.
“People are holding on to their mortgage rate, not their house,” Canfield said. “We have too many people sitting on the sidelines.”
When interest rates climbed with inflation and reached eight percent, it seemed astronomic for many when compared to recent, historically low rates.
“We need to experience these rates for a little while longer to establish them as the new norm,” Canfield said. “The normal rate for a fixed 30-year (mortgage) should be 5 to 6 percent.”
Instead of waiting for rates, inventory, and prices to all align, buyers are better off finding the right property that holds value through fluctuating markets, according to Canfield.
“Research the municipalities, the school districts and pick an area that is growing and will continue to grow,” Canfield said. “These are the properties that are likely to hold their value through downturns and appreciate over the years.”
For first-time buyers or buyers with low to moderate income, Community State Bank offers some of its lowest mortgage rates through the Wisconsin Housing and Economic Development Authority (WHEDA).
If you're planning on selling or moving within the next five years, an Adjustable Rate Mortgage (ARM) might be a great option. An ARM offers lowers early payments than a fixed-rate mortgage. Your interest rate is fixed for five years and becomes variable for the remaining loan term, adjusting every year after that.
For new construction, Community State Bank offers an exclusive 18-month construction loan special with flexible down-payment options, great rates and exceptional terms to make home building seamless and stress-free.
For more information, call CSB today at (262) 878-3763.
