Wisconsin Mortgage & Refinancing

Last Updated on September 11, 2020 by Andrew Lee

There are plenty of good reasons why Wisconsin has garnered the nickname “America’s Dairyland,” and one of them is because of its strong and thriving agricultural industry. The other sectors that also contribute to its economy include information technology, tourism, and manufacturing. Residents also take pride in their beautiful cities, including Madison, Appleton, and Janesville.

And with the state offering numerous options for outdoor activities, such as watersports, skiing, hiking, and snowmobiling, it’s easy to see why the locals don’t want to leave and why a considerable number of home buyers have taken interest on it. (Source: Livability.com)

The cost of becoming a homeowner in Wisconsin

Compared with some other states, the cost of living in WI is slightly lower. The component that has the biggest influence on this is real estate pricing, which is lower than the national median. (Source: Sperling’s Best Places)

In the entire United States, home values average at $195,300. In the state though, the average home value is just $162,800. (Source: Zillow)

One thing to keep in mind is that the price of a residential property still depends on building classification, which come in four major types:

  1. Single-family homes: Average value of $103,821.81; comprising of 93.50% of the housing market
  2. Condominiums: Average value of $96,440.09; comprising 5.90% of the housing market
  3. PUD homes: Average value of $131,763.26; comprising 0.30% of the housing market
  4. Townhomes: Average value of $112,049.54, comprising 0.30% of the housing market

Housing loan facts

Thanks to the more affordable housing prices, home ownership rating in the state has gone up to 66.6%. (Source: U. S. Bureau of Census)

However, even if the state remains one of the most affordable places in the country to buy a house in, most home buyers still need to depend on mortgages. And they have two distinct types of housing loans to choose from: the fixed-rate and the variable-rate (also commonly referred to as adjustable-rate) mortgages.

Consumers have to know what sets these two apart, as it will help them determine which ones is better suited for their budget, needs, and preference. Their knowledge of the differences between the two will also help them develop a sound plan for mortgage management.

Determining suitability of a fixed-rate mortgage

A fixed-rate mortgage is a good choice for consumers who want/need the following:

    • Feelings of ease that no matter how the market performs, their interest rate will stay the same throughout their chosen term.
    • Security of easily-predictable monthly mortgage payments.
    • Low monthly payments for the entire duration of the loan contract.
    • A house to stay in for a long period of time.

Best candidates for adjustable-rate mortgages

In the event that a fixed-rate loan doesn’t meet the requirements of a borrower, an adjustable-rate may just do the trick. This type of mortgage best suits those who:

  • Prioritize having the lowest possible interest rate, even if it only applies to the first few years of the mortgage term.
  • Only wish to reside and occupy the same house for a short period of time.

Improving one’s eligibility for a housing loan

There are many different factors lending institutions use to measure the eligibility of mortgage applicants, and one of them is credit score rating. The higher the FICO score is, the greater a borrower’s chances of securing a loan, and one with a lower interests rate. Those who have a poor credit score, on the other hand, can expect to have some difficulties securing a mortgage. And even if they do qualify for one, they most likely would have to deal with a higher interest rate.

This is why consumers should make sure their credit score report doesn’t have any mistakes, or that they first polish it before sending in a loan application.


Wisconsin Housing and Economic Development Authority

USDA Rural Development

Home Affordable Refinance Program