by Laura Kocum
on Thursday, March 21st, 2019 at 10:02am.
In the current economy, much is being said about rising interest rates. This has home buyers wondering what a mortgage will look like 3 or 6 months down the road. While you may hear conversation about climbing rates, this isn't time to be discouraged. Karen Wedvick, VP and Senior Loan Officer at Johnson Bank, says, "Mortgage rates are at such great levels. It's an excellent time to buy."
Wedvick understands the fears buyers have about rising rates. She has watched the rates closely, and insists that they are still near historic lows. If you look at rates beginning in the 1970s, and compare them to current years, the evidence is clear. Even so, Wedvick's office has tools available to help bring more certainty to the buying process. Johnson Bank offers several options to ease the anxiety of interest rate uncertainty.
One available tool is their fixed rate extended lock option. Once a buyer has an accepted offer on a property they can lock in their rate for up to 180 days. There is no fee up front to do this. Buyers can know that their locked rate is the highest possible rate they will see in their mortgage. As closing time gets closer, if the interest rates are lower, buyers may drop down to that rate, at no cost. They can do this one time. After the first rate reduction, they can still float down again, but there is a nominal fee to complete it each additional time. "It's really an insurance policy of sorts. It allows buyers to know their guaranteed ceiling, and to benefit if rates improve," she says.
This type of mortgage option is perfect for a buyer who has an extended period of time before closing. For example, it helps buyers who are purchasing a new construction property, where the closing date may be uncertain. It may also benefit a buyer who needs to sell their home before completing a new purchase. The variety of lock options provides unusual flexibility, and allows buyers to have more confidence in the process.
Wedvick believes these interest rate tools can ease anxiety and benefit many potential buyers. These programs are unique to her office, and one of the benefits of working with a local lender. You can reach Karen Wedvick at Johnson Bank by phone at 608-203-3934 or by email at firstname.lastname@example.org.
NMLS ID: 770831
Loans are subject to credit and property approval, bank underwriting guidelines, and may not be available in all states. Other loan programs and pricing may be available. Certain conditions, terms, and restrictions may apply based on the loan program selected. Property insurance is required; if the collateral is determined to be in an area having special flood hazards, flood insurance will be required. Private mortgage insurance required on loans with less than 20% down.