Mortgages

Why a mortgage from The First National Bank of McHenry?

In a word – attitude. Being a local community bank, we want to make loans, not turn them down. Our reputation goes a long way in the community. With such a wide variety of mortgage products, we’re sure to custom fit a mortgage loan that works for you, not works for us. Besides getting helpful, personalized service from the staff at The First National Bank of McHenry, you’ll find a laid back atmosphere that’s sure to please you. Our staff takes great pride in having all the documentation done right – the first time. When funding a mortgage through The First National Bank of McHenry you can be assured that there will be no last minute surprises during closing. Because all mortgages are held and serviced locally by the bank, you’ll find answers to all your inquiries just a phone call away. Chances are, your original loan officer will answer your question without referring you to a call center or voice mail. Take all of these reasons, and add fast approval time with competitive rates, you’re sure to find that applying for and receiving a mortgage from The First
National bank of McHenry is a non-threatening and pleasurable experience.

What type of mortgage is best for me?

Several factors go into determining which mortgage is best for you. The amount of money you have available for a down payment, how long you plan on staying at the residence, and how much monthly payment you can afford. Below are various types of mortgage programs offered by The First National Bank of McHenry.

Monthly Fixed Rate Mortgages (30 / 20 / 15 year)

This is the ideal mortgage program for homeowners working with a predetermined budget. Traditional in nature, our monthly fixed rate mortgage can be tailored to fit into 30, 20, or 15 year repayment schedules. Generally, the longer the term of the mortgage, the lower the monthly payment. Because of the longer terms, this mortgage program is frequently used by individuals planning on staying in the home for long term. By working with our staff, we can help you find a low, fixed monthly payment that allows your household to adequately budget a comfortable amount for living expenses. Fixed rate mortgage holders also receive comfort in knowing there is no upside interest rate risk. In times of rising rates, rates remain fixed, and in times of declining rates, refinancing can be considered. Other benefits of a First National Bank of McHenry fixed rate mortgage include no junk or hidden fees, and prepayment is always an option without penalty.

Bi-Weekly Fixed Rate Mortgages (20 / 15 year)

For homeowners wishing a more rapid payoff, a First National Bank of McHenry Bi-Weekly fixed rate mortgage introduces itself as a very convenient and beneficial mortgage program. Because payments are directly deducted from your checking account every other week, payments are in effect “split in half.” This allows principal to reduce quicker creating more equity, which in turn, ultimately results in you paying substantially less in interest over the term of the loan.

Balloon Mortgages ( 7 / 5 / 3 year)

The perfect short term mortgage for homeowners not planning on staying in their current home for the long term. This allows balloon mortgage holders the option to upgrade to another home as their family grows. Because payment amortize over 25 years, rates are typically lower than traditional monthly fixed rate mortgages, resulting in lower monthly payments. First time home buyers will find a balloon mortgage affordable because of the variety of terms offered by The First National Bank of McHenry. At the end of the initial term, balloon mortgages can be paid in one lump sum payment, refinanced into another balloon mortgage with a different term, or converted to a longer term mortgage.

Monthly Adjustable Rate Mortgage

This loan is an adjustable rate mortgage (ARM) that calls for periodic adjustments to the rate and payment according to a predetermined schedule. With an initial rate lower than most fixed or balloon mortgages, the adjustable rate mortgage offers an attractive alternative to other traditional mortgages. In a decreasing rate environment, you may find your current rate is actually less than your initial rate. This allows your rate to decrease without the expense of refinancing. However, in a rising rate environment, the opposite is true. Consequently, we’ve installed a 5% lifetime “cap” designed to protect you from rapid changes in your payment.

Where can I find out more about a mortgage from The First National Bank of McHenry?

That’s simple! Call us at either (815)385-5400 or (847)526-1770 and ask to speak to a mortgage specialist and you will be connected to one immediately. Or send us an e-mail and we’ll be happy to follow up with you at your convenience.

For more information on home lending issues in general visit www.consumer.gov, or write to the Consumer Information Center, Pueblo, CO 81009 or visit the center’s website at www.pueblo.gsa.gov

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