Wisconsin
Home Financing and
Mortgages
The Wisconsin Realtors’ Association (WRA)
has reported record home sales with an estimated 119,000 homes being sold in
2003. Median house price have also risen by 3.4% in the fourth quarter of
2003 to $140,000, compared to the same quarter in the previous year. There
are some pronounced county variations though: the median price in Iron
County, North Wisconsin rose by a staggering +76.9% to $190,000, compared to
a decrease of -1.2% to $168,000 in Pierce County, Western Wisconsin. With an
improved economy and continued low interest rates predicted for 2004, the
housing market is likely to remain buoyant.
When looking to buy a home you need to do
your homework properly to ensure your finance package meets your needs and
is value for money. Using the internet and consulting a real estate broker
can be a good start.
Essentially, there are two types of
mortgage: fixed rate and variable rate or ‘ARM’ mortgages. A fixed rate
mortgage attracts a
fixed interest rate for the life of your loan (which can range between from
10 and 30 years), so you can budget easily as the amount you pay each month
will always be the same.
Variable rate mortgages or
ARMs incur a fixed rate for an initial period, usually lasting between 1 and
7 years. Thereafter, the interest rate varies on annual basis until the loan
is fully repaid. Variable rate mortgages can offer lower interest rates
during the initial fixed rate period, which can make them attractive to
first-time homebuyers looking for a foothold on the property ladder.
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