Fixed-Rate Mortgages, ARMs and Other Home Loan Options
Purchasing a home is an exciting event that requires a lot of planning, the perfect home and most importantly, a mortgage loan that fits your needs AND your budget. The mortgage lenders at CBI Bank & Trust are well known throughout the area for their dependability and professionalism. They will work with you to understand your needs and to help you find a mortgage that’s a perfect fit.
- Fixed-Rate Mortgages Explained: Fixed-rate mortgages feature interest rates that are locked in for the life of the loan. They are one of the most common ways to finance a home purchase.
- Best For: Those who want a stable, consistent mortgage payment for budgeting purposes; for new purchases during periods of low interest rates; and for those who will be living in the same home for a long period of time.
- Types Available: Conventional, FHA (Federal Housing Authority) Loans and VA (Veterans Administration) Loans
- Benefits: Choice of terms; rate buydowns are often available;, easy monthly payments; in-house servicing of your loan at CBI Bank & Trust
- Adjustable-Rate Mortgages (ARMs) Explained: Available in many different terms, adjustable-rate mortgages feature interest rates that fluctuate based on market conditions. Interest rates and payments are often lower than those of comparable-term fixed-rate mortgages. To protect borrowers, any changes are tied to an independent index, and are often subject to periodic (for example, annual) and lifetime caps.
- Best For: Those expecting an influx of income; those who can afford fluctuating payments; individuals who are looking to live in a home for five to seven years.
- Types Available: 5-year and 7-year ARMs; the interest rate and monthly payments are adjusted once after the 5-year term and 7-year term, and then once a year afterward.
- Benefits: Lower initial interest rates, monthly installment payments, in-house servicing at CBI Bank & Trust
First-Time Home Buyer Programs
Purchasing your first home can be full of hurdles, especially if you don’t have the funds available to make a larger down payment. These programs help to eliminate the barriers many first-time home buyers face:
- Iowa Finance Authority First Time Home Buyer Programs: Financing is available through the Iowa Finance Authority (IFA) to help first-time home buyers get the home they want without high down payments. Learn more about the programs the IFA provides by contacting CBI Bank & Trustor visiting the IFA website.
- USDA Rural Development Loan Program: CBI Bank & Trust is an approved lender for guaranteed loans with fixed rates and zero down payment from the U.S. Department of Agriculture. Other key features include no requirement for private mortgage insurance, escrow services, and convenient monthly payments.
Other Home Loan Options
You will also find other home financing opportunities at CBI Bank & Trust such as:
- Bridge Loans: Financing to cover the period when you are in between selling your current home and purchasing your new one.
- Construction Loans: “Pay-As-You-Go” financing that helps you make the necessary purchases and pay contractors to build the home of your dreams.