Nodaway Valley Bank originates residential real estate loans for construction, purchase or re-finance, secured by a first lien on the property.  Borrowers have the option of obtaining a fixed rate long-term loan or an adjustable rate mortgage (ARM).  Fixed rates loans are typically sold to other investors through the “secondary market,”  while adjustable rate loans may be retained for the bank’s portfolio.  Bank-retained loans typically have lower closing costs.  You will be furnished a summary of the estimated closing costs in order to compare loans.   

Fixed rate mortgages offer “peace of mind” that neither the interest rate, nor payments will change over the life of the loan. Adjustable rate mortgages can be structured with lower monthly payments at the start of the term, but the interest rate may change over the life of the loan. 

Sometimes, it makes economical sense to refinance an existing mortgage in order to consolidate debt or take advantage of a lower interest rate.  Our lending staff can calculate which type of loan program best suits your circumstances.