Interest Rates Boost N’West Iowa Homeowners | New

REGIONAL – 2020 has encouraged many to reinvest in the places they live, but Adam and Karin Rosman have done more than most.

The Rosmans, who live in Rock Valley, refinanced their mortgage and bought a new home in a year, taking advantage of last year’s drop in interest rates to make their money more efficient.

The Rosmans had recently renovated their home, and an appraisal indicated that refinancing their mortgage would provide them with additional cash and earn a better interest rate.

“We saw an opportunity to take some of the principal off the loan, pay off some of the debt and be out of debt that way,” Adam said. “We used that money to reinvest, so we worked for ourselves instead of staying at home.”

This financial leverage came in handy in August when the Rosmans bought a bigger house in Rock Valley where their sons, Elijah, 8, and Noah, 7, could have a backyard to play. Adam said the upgrade would have taken place. in a few years anyway, but their new financial situation “progressed over time.”

The Rosmans weren’t the only ones benefiting from interest rates which fell in 2020 to the lowest level many area mortgage lenders have seen in two decades or more.

Cindy Van Regenmorter, senior mortgage officer at Peoples Bank in Sioux Center, said interest rates in 2020 were the lowest she had ever seen.

“We’ve hit all-time lows,” said Cindy Van Regenmorter, senior mortgage officer at Peoples Bank in Sioux Center. “We were seeing 30-year mortgage rates in the 2 percent, 15-year rates that were 2 low or even had a 1 in front of them.”

Before the coronavirus pandemic, mortgage interest rates in N’West Iowa were closer to 4%. Rates fell at the start of the year due to market uncertainty, and although they have started to recover slightly, they remain unusually low.

As a result, potential buyers or owners like the Rosmans have seized the opportunity to get the most out of it.

Refinancing is where Van Regenmorter has seen the most action. Peoples Bank of Sioux Center refinanced nearly twice as many mortgages in 2020 as the previous one.

“2019 has already been a very good year. 2020 has arrived and has blown 2019 out of the water, because things have escalated so much, ”said Van Regenmorter. “2020 has been a crazy year in the mortgage industry and I know it was nationwide.”

While 2020 has been a good year for mortgages and 2021 is starting to look the same, the results of a recent study indicate that if you were to get a mortgage in 2020, N’West Iowa was a particularly good place to go. make.

A study by SmartAsset, a New York-based financial technology company, ranked Iowa counties based on the cheapest mortgage market. The results were determined by comparing loan acceptance rates, estimated costs over five years, property tax and annual payment.

While not a foolproof or exhaustive comparison, the ranking includes three N’West Iowa counties in the top 10. Sioux County was ranked number one, followed by Lyon County in fourth position. and O’Brien County in sixth place.

Kristin Kleinwolterink, assistant vice president of Iowa State Bank in Sheldon, said N’West Iowa’s high ranking likely had a lot to do with taxes and the overall cost of living, which is lower than in d other more densely populated parts of the state.

“In O’Brien, we have a lot of small towns where the property taxes are pretty low,” she says. “You go to your Hartleys and Sanborns and they’re pretty low.”

As interest rates edged up from historic lows they hit in 2020, Kleinwolterink said it was still one of the most affordable times to get a mortgage. His advice to future buyers considering this step is to start by reviewing their credit history and existing debt.

“How much money do you have each month that isn’t going into debt each month that you can invest in a house?” she said. “If you have two car payments and student loan payments, it’ll take down the rest of your income, so you’re buying a smaller house.”

And if you’re not looking to buy, refinancing an existing mortgage can free up money to improve your home.

“A lot of people refinance or get money to do repairs or upgrades that they delay,” Kleinwolterink said. “The prices being low, they say to themselves: ‘We might as well do these repairs.’ It’s about buying and refinancing to get the best possible rate. “

Although COVID-19 has contributed to the low interest rates that have helped many homeowners switch to a better home for less money, it has depleted the housing stock in many communities in N’West Iowa. Fewer new homes were built last year as supply chains were disrupted by COVID-19, making it harder and more expensive to get the materials needed.

Van Regenmorter expects continued housing demand, driven by interest rates that have remained low, to result in more construction this spring and summer.

“The constructions should be very solid, new constructions, just because of the low inventory,” she said. “The prices may increase a bit, but I think they will stay high and you will still see a strong movement of homes in the communities.”

About Stephen Arrington

Check Also

IPOE Stock: Practice Patience with Hedosophia Holdings Corp. V

In early March 2021, I wrote another article on Social Capital Hedosophia Holdings, the company …

Leave a Reply

Your email address will not be published.