Home Loan Center

Home Mortgage Loans

Here at Northwoods Bank, our mission is to help people fulfill their financial dreams and goals through the building of strong relationships with our customers.

Our friendly and professional Home Mortgage Lending Team is committed to assisting our customers with the quality knowledge and service they need to make their dreams of owning a home come true. Whether your looking for your first or your next home, we can help. There is no loan too big or too small.

Due to the fact that everyone’s mortgage needs are unique, we offer several different types of mortgages with competitive rates and terms that are guaranteed to fulfill virtually every type of home mortgage need. Each home mortgage category offers a range of financing options. The information below provides an overview of the types of mortgage programs most widely available.

• Long-Term Fixed-Rate
• Medium-Term Fixed Rate
• Adjustable Rate (1-year ARM)
• Intermediate ARM
• Balloon Loan
• New Construction Loans

• Key features: Interest rate remains the same for the life of the loan.
• Customer benefits: Provides protection against rising interest payments. Predictable payments make budgeting for the future easy.
• Homebuyer profile: Especially attractive in a low interest-rate environment and ideal if you plan to stay in your new home for at least 7 years.

• Key features: Same as Long-Term, but with slightly lower interest rates.
• Customer benefits: Principal is paid off sooner, saving substantial money in interest payments.
• Homebuyer profile: Investment-minded homebuyers who can or wish to make higher mortgage payments can build equity faster.

• Key features: Interest rate (and monthly payments) can rise or fall as a result of annual rate adjustments, which occur throughout the term of the loan in response to a changing economy.
• Customer benefits: The initial interest rate (and monthly payment) is lower than that of a fixed-rate mortgage.
• Homebuyer profile: An ARM may be a good choice in a higher interest rate environment if you need a lower rate to qualify for financing or if you want to save money in the first year.

Intermediate ARM

• Key features: Offers a fixed interest rate for a designated period (3, 5, 7, or 10 years) then adjusts annually. Often referred to as 3/1, 5/1, 7/1, and 10/1 ARMs.
• Customer benefits: Initial interest rate and monthly payments are lower than that of a fixed rate, so payments are more manageable during the introductory period. The rate is usually higher than the 1-year ARM, but payments are dependable for a longer period.
• Homebuyer profile: This option can be a practical financial-planning tool for forward-thinking homebuyers who intend to move in 3, 5, 7, or 10 years.

• Key features: Offers fixed payments for a period of time (usually short term), followed by one balloon payment of the remaining loan balance.
• Customer benefits: Interest rate is lower than that of a fixed-rate loan.
• Homebuyer profile: A popular choice of homebuyers who are certain they will move or refinance in 5 to 7 years.

• Key features: Offers two types of programs: one that finances the purchase of a newly constructed home and one that finances the actual construction plus the purchase of the finished home.
• Customer benefits: Loans for new construction offer cost saving benefits, when the construction and End Loan Financing are both done with Northwoods Bank.
• Homebuyer profile: Homebuyers purchasing a newly constructed home from a builder, or building their own home.

Northwoods Bank has a variety of rate, term and cost options to answer homebuyer needs. Our Home Loan Center Lenders can recommend the financing solution that’s exactly right for you. For more home mortgage advice an information, visit our Northwoods Bank Home Loan Resource Center.

• Should I refinance my home mortgage?
• What would my payments be for a fixed rate loan?
• What would my payments be for an adjustable rate loan?
• What would my payments be for a balloon loan?
• Should I rent my home or buy?
• Which loan is better, Fixed or Adjustable?
• What would I save if I make extra payments?
• How much house can I qualify for?
• How much house can I afford?
• Advanced mortgage calculator.