Very recently the State Farm Insurance Company, famous for their car insurance and all other types of insurance, has moved into the market by providing another type of product; retail financial services. They offer checking, savings and credit card services as well as a limited list of home loans. This is a huge and very credible institution; there is little question that they have the capital to fund a venture into the banking business. However, their home loan offerings are slim, if competitive, and they only offer fixed rate, adjustable rate, jumbo, and high balance mortgages, at 15-year, 30-year fixed rates and 7/1 adjustable rate loans. As far as options go, theirs are very limited compared to most banks and mortgage lenders. Their rates are excellent, however, and they no doubt have a very experienced underwriting staff to assess loans inhouse.
Home Equity Loans and Refinancing Available
State Farm is offering both home loans to purchase property as well as home equity loans that allow clients to draw cash against their equity in their home and add it to the mortgage. These loans are usually to help with construction projects or some type of upkeep or upgrade of their home. The fact is that an equity home loan’s proceeds are entirely up to the borrower to spend as they see fit. The State Farm Bank website offers its interest rates and apr’s in real time, and their method of application allows you to lock in a rate for your loan for a given period of time, although there may be fees attached to locking into a rate.
The Good Deals are Early to Attract Business
Right now State Farm is offering a $500.00 discount on closing costs for home loans and a $250.00 discount on home equity loan closing costs. This is a limited time offer but borrowers can count on State Farm to do some deals to attract business here at the beginning of their venture.