Home Loans in Madison & South Central Wisconsin: Buying and Financing your Madison, WI Home

Found 18 blog entries about Mortgages.

Last year was a roller coaster ride, for sure. But in 2023, rates have fallen more than a full percentage point below the 2022 peak. In fact, as of this writing, a 30 year fixed rate mortgage from UW Credit Union is now available for as low as 5.75%

30 year mortgage rates Feb 2023

How much home can you buy in 2023?

Reach out to our realtor team if you're curious about your purchasing power in today's market. We'll connect you with a local lender who will help you make sense of your current financial position -- and pre-approve you for your mortgage, too. A lender who will give you all the time you need on the phone, and if you wish, even meet with you in person. Now there's a novel concept :)

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The Mortgage Bankers Association conducts a weekly survey designed to capture the demand for mortgages across the country. And according to the latest survey released on November 23rd, mortgage applications (for purchase loans, excluding "refis") decreased 41% compared to the same week in 2021. Note from the chart below, mortgage demand slipped considerably in the months of September and October.

Madison WI Mortgage Applications

How does this trend impact the Madison area real estate market? 

Well, up until just a few weeks ago, inventory was continuing to trend along historically low levels. But now that buyer demand has decreased, we are beginning to see inventory slowly grow again. And as inventory grows, days on market are beginning to slowly increase as some sellers become

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Recently a friend called us and asked for a referral to a trusted lender. Her daughter Emma, a first-time home buyer, was already talking to a mortgage lender. But Emma wasn't getting the time and the information that she needed to better understand the mortgage process.

So we referred Emma and her mom to Karen Wedvick from Wintrust Mortgage. And as it turned out, Karen's approach was exactly what Emma and her mom were looking for. Karen gave Emma a great introduction to the mortgage process and helped Emma map out all of her next steps. 

Emma's story is a common one. With so many lenders to choose from in the Madison area, sometimes it can take a little time to find the right fit. 

At Mad City Dream Homes, we're always available to refer you to

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According to Freddie Mac, interest rates for a 30-year fixed-rate mortgage have more than doubled since the beginning of 2022, and as of this post they are now above 7 percent.

30 year interest rates Oct 2022

Where will mortgage rates go from here?

We certainly can't predict the future, but it's conceivable that rates for a 30-year fixed rate mortgage could approach 8 percent by the end of the year. So, for anyone that absolutely needs to sell right now, these last few weeks of 2022 are especially important, because buyer demand continues to decrease as mortgage rates increase.

We'll have much more to share about the market in the coming weeks and months. In the meantime, please reach out to us anytime you're in need of a real estate conversation. We would love to be a

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As mortgage rates have risen in recent months, many buyers are now turning to the Adjustable Rate Mortgage (or ARM) in order to lock in a low interest rate over a five, seven or ten year period. As many as 40% to 50% of all buyers are now choosing an ARM over a fixed-rate mortgage, based on our recent conversations with local lenders.

adjustable rate mortgage

Why would you choose an adjustable rate mortgage?

An ARM allows you to lock in a lower monthly payment during the initial period of your loan. For example, with a 7-year ARM, during the first 7 years of your loan you would lower your interest rate by a full percentage point compared to the traditional 30-year fixed rate mortgage. After the initial 7 years is up, your rate would adjust subject to market conditions

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While every real estate situation is unique, our team has noticed that sellers often view offers from buyers more favorably if they’re working with a local lender -- especially someone who takes the time to vouch for them. Even if your offer isn’t the highest or it includes financing or has other contingencies, having a local lender as part of the transaction can help distinguish your offer in a competitive market. Online or out-of-state lenders can cause listing agents to worry about appraisers, communication, and accountability. Sellers want a smooth closing, and a local, knowledgeable, and service-minded mortgage lender can help pave that path early on. 

For example, the determining factor in Mad City Dream Homes REALTOR Jake Johnson’s clients

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Spring is in the air, and that has golfers eager to hit the links! Golf course communities have long been attractive places to buy or build a home due to the on-site amenities and sweeping views. Below we round up 15 neighborhoods that are within a short distance of a golf course in the Madison area. Click on the community name to read our full neighborhood profile and see current listings.

Neighborhoods near Madison area golf courses

Bergamont - Located in Oregon, this community surrounds the Legend at Bergamont 18-hole golf course. In addition to great views, the community has many amenities including a restaurant, fitness center, and a swimming pool. Homes in this neighborhood are upscale and many have unique features like home theaters and chef-quality kitchens.

Bishops Bay - Along the

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Having weathered a year of the COVID pandemic, it's not hard to see the many ways our lives have been affected. For some homebuyers, job changes or furloughs may have decreased the amount of home they can afford. Other potential buyers have shifted to more self-employment work and aren't sure how that affects their financing. Patrick Averill of Thompson Kane has been helping many of our clients secure financing during this unique time. He recently shared a few insights with us about the current lending climate.

Q: How has the lending market changed with COVID? Is it more difficult to secure a loan?

Patrick Averill of Thompson Kane

Patrick: Due to COVID, underwriting guidelines have become more strict than they used to be. More up-to-the minute income information is required

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At some price points, cash offers and escalating prices have made it more difficult for financed buyers to be competitive - especially if they’re only able to put 3-5% down. But, there are ways buyers can stand out in this situation. One way to appear more competitive in a tight market is through your lender. Dave Grauwels of Guild Mortgage helps many of our clients. He recently chatted with us to share how he and his team help his customers go through the offer process with a competitive edge. Read his top three strategies below.

Dave's Tips for Being Competitive as a Financed Buyer

Dave Grauwels of Guild Mortgage

  1. Get your pre-approval underwritten so your offer is nearly as appealing as cash. If a buyer starts the pre approval process early in their search, we can
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Madison mortgage rates keep falling, and are now at their lowest levels since November of 2016. Check out this chart from Freddie Mac, which shows how interest rates have trended over the last 3 years. 

Madison WI Mortgage Rates 

Locally, some Madison area lenders are publishing rates for a 30-year fixed rate loan as low as 3.5%. 

How do lower rates help you right now? 

If you're planning to buy right now, here are the two big benefits:

First, today's low rates give you more homes to choose from by lowering your monthly mortgage payment, which is a big plus in our low inventory market. 

Second, the timing of this rate drop is very beneficial to anyone who's serious about buying right now. That's because many sellers are becoming more flexible with their pricing

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