4 minute read
More For Your Money | Adams Bank & Trust Newsletter | 3rd Quarter 2022
OUR TAILORED MORTGAGE SOLUTIONS
by STEVE KRAUSE president
With interest rates for 30 year fixed-rate mortgages in the 7%+ range, many borrowers are reluctant to lock in long-term loans. They want to see what the future holds, but they have housing and financing needs today. That’s where Adams Bank & Trust can offer some alternatives. We offer a variety of in-house mortgage products to accommodate different needs. These include 5-year adjustable-rate mortgages, bridge loans, construction loans, lot loans, second mortgages, and home equity lines of credit.
Very few banks and mortgage lenders offer this wide of a range of loan products anymore. They’d rather stick to the easy scenarios. After all, in-house mortgages do involve more time, work, and risk for the bank. But when a particular loan is the best solution for the customer, that’s the loan we want to make.
Higher interest rates, skyrocketing home values, and a shortage of homes for sale in many markets have created some challenges for home buyers. However, Adams Bank & Trust has a seasoned
mortgage team, and this isn’t our first rodeo. Our bankers have seen the ups and downs of various housing markets, and they have a number of creative mortgage solutions at their fingertips. As a growing commercial bank, it’s all part of the way we take care of customers over the long haul.
No matter the rate environment and overall economy, there are always opportunities – if your bank is willing to tailor financing to meet your objectives. Ask our mortgage team about the alternatives that can work for you.
CHARLIE WORTMAN evp - mortgage banking NMLS #568737
Charlie Wortman says Adams Bank & Trust’s in-house mortgage solutions put the customer’s needs in the center. “We want to help customers get into the homes they want to be in, on their time frames.” He adds, “As a hometown bank, we can be more flexible and creative in our financing than the bigger banks. For example, the self-employed can have more difficulty proving income, but we can look at that a little differently. And unlike Fannie Mae and Freddie Mac’s fixed-rate mortgages, we can have a more flexible approach to collateral.”
Lender expertise is another advantage. Wortman says, “Our team is very experienced, and our lenders tend to remain at the bank for a long time. So you’ll likely have the same contacts throughout your loan period. You have a direct relationship with your local banker, not some big corporation. We’re going to walk you through any questions you have now and down the road.”
Wortman says the 5-year adjustable-rate mortgage (ARM) is a good product if borrowers want to avoid some of the larger costs of a 30-year fixed rate mortgage, especially in the current rate environment. “Our current ARM rates are a little lower than the fixed-rate mortgages. You’ll be able to take advantage of rate decreases that may occur. An ARM can also make sense if you know you won’t be in the home for a long period of time.”
The bottom line with all the bank’s in-house mortgage options? Wortman says, “We look for ways to make loans, not reasons to turn them down.”
Not many institutions offer bridge loans, but they are a long-time specialty for Adams Bank & Trust. “This option is very popular with customers who don’t want to miss out on securing their dream home if their current home hasn’t sold yet,” Wortman says. “We’ll place liens on both homes, and the lien on the original home can be paid off or paid down when it sells. You’re not locked into long-term financing when you just need a short-term loan. You won’t need to rent temporary housing or store your belongings in the interim. And it helps you to be more competitive in the buying market if you don’t have to make a bid contingent upon your first house selling.”
