Find the Best Mortgage Lenders in Beaver Dam, WI

Different types of home loans in Beaver Dam

When choosing a mortgage, it’s important to keep in mind that this will be one of the longest commitments of your life. Mortgage terms typically run up to 30 years, not including any possible refinancing, so you might have to live with your choice for a long time.

Finding a good mortgage can make a big difference in how affordable your new home is, and this starts with choosing the right type of loan. We’ve compiled the main options below to help you compare:

• Conventional mortgages: A conventional home loan is a type of loan that doesn’t come backed by a government entity. These loans are offered through private lenders or banks and typically come with higher rates and fees, making them a better option for borrowers with stronger financial situations.
• Jumbo loans: A jumbo mortgage is a type of loan needed for homes over a certain price. In Dodge County, that number is $510,400 at the time of publishing, according to the Federal Housing Finance Agency. However, jumbo loans are not common in Beaver Dam because house prices here are fairly affordable.
• FHA loans: Also called Federal Housing Administration loans, FHA loans are a type of financing designed for low- to moderate-income borrowers who may have trouble getting approved through traditional lenders. The government backs a portion of each loan to make borrowers more attractive to lenders. Common FHA loan benefits include smaller down payments and better rates.
• USDA loans: A USDA home loan is a type of government loan backed by the U.S. Department of Agriculture that can be used to purchase a home in a rural or suburban area in Dodge County. These come with no down payment requirement and more competitive terms than some other options.
• VA loans: VA home loans are insured by the Department of Veterans Affairs for military members, veterans and their families. These loans come with no down payments and no mortgage insurance.
• Fixed-rate mortgages: A fixed-rate home loan offers a single interest rate for the entirety of your loan. When rates are very low, this is a great type of loan to take advantage of because it can help keep costs low over the course of your whole loan term.
• Adjustable-rate mortgages: An adjustable-rate mortgage offers an interest rate that changes over the course of the loan term. ARMs are better for when rates are not as good or when you need to have a lower rate at the beginning of a loan even if it may raise eventually.

Average mortgage rates in Beaver Dam

In Wisconsin, mortgage rates at the time of publishing average between 3.08% and 3.5%, according to S&P Global. Your interest rate can depend on a variety of factors, including:

• How much the home costs
• Your credit score
• Your down payment

Some lenders may offer lower interest rates in return for a larger down payment or an upfront payment through mortgage points. If you still can’t find favorable rates, consider working on your credit score or finding a co-signer for the loan.

Beaver Dam home loan FAQ

How much is a house in Beaver Dam?

The cost of a home in Beaver Dam usually range anywhere from $85,000 to $850,000, with the median house price falling at $158,333 at the time of publishing, according to Zillow. Homes along Beaver Dam Lake are usually more expensive, but most borrowers can find a property in their price range here. With close access to Madison, Fond du Lac and other Wisconsin cities, Beaver Dam is growing in popularity with families who want to experience a rural, hometown feel. As the town continues to grow and more individuals move here, prices are expected to continue to rise.

What is a mortgage broker?

A mortgage broker acts as the middleman between borrowers and banks. They gather all of your financial history and preferences to match you with a lender. A mortgage broker can shop multiple rates and options on your behalf, so it’s often easier to work with a reputable broker than shop around for yourself.

What's a good interest rate in Wisconsin?

In Wisconsin, 3.5% or lower is a good interest rate at the time of publishing.

When should you refinance?

It depends. Some say that the right time to refinance is when interest rates are at least 1% lower than your current rate and you plan to stay in your home for another five years. However, you also need to make sure you have enough money in the bank to cover the upfront costs, including application fees and an appraisal.