Home > Home Buying > Home Buyer's Guide

Home Buyer's Guide

...safe and secure.

Chicago Bancorp Direct™ has the largest selection of home financing products. Use this resource to select and customize the mortgage that fits your individual needs. Contact us directly at 312-738-8500 or chat with us online if you can’t find the product that suits you.

• Fixed rate products
• 30-year fixed rate
• 20-year fixed rate
• 15-year fixed rate
• 25-year fixed rate
• 10-year fixed rate

• Adjustable rate products
• 10/1 year ARM
• 7/1 year ARM
• 5/1 year ARM
• 3/1 year ARM
• 1 year ARM
• 6 month ARM
• 1 month ARM
• 7 year balloon
• 5 year balloon

• Securities Based Loans
• 3-Year Fixed Term
• 5-Year Fixed Term
• 7-Year Fixed Term
• 10-Year Fixed Term
• Rates 2.5% - 4.5%

Fixed-rate mortgage

Monthly principal and interest payments do not change over the term (usually 30, 20 or 15 years) of the loan. Your mortgage expenses stay the same. If you believe you will stay in your home for the entire term or if you believe interest rates may rise, this loan may be right for you.

Adjustable rate mortgage products

These types of loans have interest rates that are fixed for a specified term (10, 7, 5, 3, or 1 year) and then adjust periodically based on changes in a pre-selected index. The most common indices for these mortgages are: Treasury bills, Certificate of Deposit (CD), LIBOR and COFI. Generally, adjustable rate mortgages have lower initial interest rates during the fixed initial term—lower monthly payments. These types of loans would be attractive to first time homebuyers, buyers who do not plan on living in the home for the full term of a long fixed rate product (i.e. 30 years) or if you plan to sell during the next 1 to 10 years.

Balloon mortgage products

A balloon mortgage has uniform monthly payments up to a predetermined date and a lump sum or "balloon" payment due at the end of the loan period to complete the payoff of the loan. Balloon mortgages usually have a predetermined refinance option (the terms are not negotiable) that the borrower may use if they believe they will have difficulty paying the balloon payment Generally, these mortgages have lower initial interest rates during the fixed initial term—lower monthly payments. These types of loans would be attractive to first time homebuyers, buyers who do not plan on living in the home for the full term of a long fixed rate product (i.e. 30 years) or if you plan to sell during the next 1 to 10 years.

Securities Based Loans

This type of lending allows the borrower to use their investments (stocks, mutual funds, bonds or other securities) to obtain funds for personal or business use. Using investments as collateral it is possible to borrow money at low interest rate financing for up to 10 years.

• Fixed interest rates between 2.5% and 4.5%
• Interest Only quarterly loan payments
• Loan terms of 3, 5, 7, or 10 years
• No closing costs, Banker or transaction fees
• No income or credit criteria
• Funds may be used for any purpose including real estate purchase, business expansion, etc*
• Non-Recourse Loan. The loan is only collateralized by the pledged securities - not real estate or other personal property
• Loans available for up to 80% of the securities’ value
• The borrower keeps all dividends and upside market appreciation of the securities

Prepayment penalty products

Loans with prepayment penalties generally offer lower interest rates, however the lender will penalize you if you wish to pay off part or all of the loan balance in advance of the predetermined schedule. Generally, prepayment penalties for ARM products would be incurred if you made full or partial prepayments within three years from the date of your note. A prepayment penalty on a fixed rate product would be incurred if you paid off the loan balance early. The penalty varies by product.