In-House loans are underwritten, funded and serviced right here at First National Bank North. We offer competitive rates on primary and seasonal dwellings as well as vacant land and lakeshore. With our own underwriting we are able to offer quick, flexible and convenient financing for most any situation, understanding your unique circumstances.
With a fixed rate mortgage, the interest rate remains unchanged for the full term of the loan. The monthly payment of principal and interest stays the same for the duration of the loan. Fixed rate loans can either balloon after the term expires or be fully amortized, to be paid off without a balloon.
ADJUSTABLE RATE MORTGAGES (ARM)
An adjustable rate mortgage usually starts with a lower initial interest rate than a fixed rate mortgage. After an initial fixed period of 1 year, the interest rate is reviewed annually and adjusted annually, based on the movement of a specified index. ARMs are subject to a lifetime cap and annual adjustment cap. Your monthly payment changes as the rate changes. ARM loans can be beneficial when interest rates remain steady or decrease, because your initial rate will be lower. If the rate increases, you may adjust to a higher payment as your income increases.
FIRST TIME HOMEBUYERS
This First National Bank North product offers first time home buyers the opportunity to purchase their first primary dwelling without complications. This loan combines convenience, efficiency, a low down payment and a special low rate.
Building a home can be complicated and frustrating, but financing doesn’t have to be. First National Bank North offers construction loans for primary and seasonal residences or improvements to an existing residence. We will work to approve your construction loan while reviewing your qualifications on the permanent loan when your construction period ends. This can save you time and money to enjoy your new home.
A home equity loan, either fixed or variable rate, is a loan that uses the equity in your home as security. Home equity loans can be for home improvement, purchase of an auto or other consumer goods. Home equity loans may also provide a tax deduction (consult a tax advisor for details).
HOME EQUITY LINES OF CREDIT
Home equity lines offer financial convenience. First National Bank North offers a line of credit secured by the equity you have in your home. It can be used to purchase an auto, boat, computer, education, finance a wedding, etc. Once your application is approved and a credit line determined, you can conveniently access your loan account by simply writing a check. Rates for these lines of credit are variable rate based on Wall Street Prime and set up for a 5-year term with monthly payments determined by the amount advanced to date.
Another option, if you are thinking of a home equity line of credit, is a more traditional second mortgage loan. This type of loan provides you with a fixed amount of money repayable over a fixed period of time. Usually, second mortgages require fixed payments that will pay off the loan within a set time frame.
SECONDARY MARKET LOANS
First National Bank North provides access to the Secondary Real Estate Market and is able to offer the best available terms, rates and programs. Secondary market loans are processed, closed and funded at First National Bank North and then assigned to a servicer. Whether you're looking at purchasing or refinancing, a conventional or government loan, First National Bank North is able to get you there. If your needs do not fit into the Secondary Market, First National Bank North has a variety of In-House products to satisfy your financial needs.
A conventional loan through the Secondary Market can be a fixed rate, adjustable rate or balloon mortgage. For as little as 5% down, you can purchase a home to be used as a primary residence, second home, or an investment property. You may also refinance your existing mortgage to take advantage of debt consolidation or cash out. The experienced lenders at First National Bank North will help you determine which loan package is best for you based on how long you plan to live in your home, the current rates and your personal financial picture.
The Federal Housing Authority (FHA) offers all qualified home purchasers an insured or guaranteed loan with low down payment and the option for either a fixed or adjustable rate. FHA loans are limited in size, but they are typically generous enough to accommodate most buyers.
The Veterans Administration (VA) offers an insured or guaranteed loan to those individuals qualified by military service or other entitlements. This loan features low or no down payment and can be either a fixed or adjustable rate. VA loans are limited in size, but they are typically generous enough to accommodate most buyers.
First National Bank North offers the Rural Development Loan Program. The program offers a guaranteed fixed rate loan with zero down payment. With few restrictions, this is a great program for buyers to get into a home with little cash.
Minnesota Housing Finance Agency offers home improvement and home energy loans to qualified borrowers at a low fixed rate. This loan is subject to maximum income limits and maximum loan amounts.