Fixed rate residential real estate
Terms with amortization schedules of up to 30 years or 360 months are available. These loans will be sold on the secondary mortgage market with servicing retained by the Bank. Included in these programs are the USDA Rural Development loans. These loans require no down payment and are guaranteed 100% to the bank. This is a fixed interest rate loan amortized for 30 years. With Rural Development loans, customers are required to escrow for their home owners insurance as well as real estate taxes.
Adjustable Rate Mortgages & Residential Real Estate Loans
ARM loans or Adjustable Rate Mortgages have amortization schedules reflecting maturities of 10 to 30 years. We offer 3/1, 5/1 and 7/1 ARMS. This means the loan is locked for the first 3, 5 or 7 years and then switches to an annual adjustment. The amount of adjustment as well as the index and margin are addressed in the note. These loans have interest rate floors and ceilings which limit rate movement to specific movement up or down. Rates vary from time to time.
Home Equity Lines of Credit
Home Equity Lines of Credit is typically a junior or second mortgage which secures a preset line of credit that a borrower can access. The balance fluctuates as funds are advanced on the line and reduces as the borrower repays the funds. Interest rates are typically variable and reflect a base rate usually Prime or Prime + 1. These loans are written as 5 year balloons. Customers have several options as far as repayment. It can be interest only, monthly or quarterly or 1% or 2% of the balance. We also offer a fixed rate second mortgage also ballooning at 5 years but can be amortized up to 10 yrs.
FHA and VA
These loans are also offered by Sauk Valley Bank. These loans are sold on the secondary market to another lender as well as the servicing.