With interest rates at historic lows, area residents are taking advantage of opportunities to upgrade their homes.
“Spring is tuypically the best time, anyway, for people wanting to remodel or repair,” said Jeff Johnson, president of Citzens Bank in Iola. “With interest rates this low, it makes for a rich environment for refinancing.”
Interest rates have hovered at or below 4 percent for more than a year, which leads to an active market — to an extent.
“We’ve had a lot of activity, but interest rates have been so low for so long, that many people who could refinance have already done so,” said Ken Gilpin, president of Iola’s Community National Bank.
Gilpin also noted that low interest rates have coincided with a sluggish economy, which has prompted many CNB customers to remain tight-fisted with their funds.
“People have played it pretty close to the vest,” Gilpin said.
Those looking to refinance, or to take out mortgages to buy or build new homes typically do so about now, said Mike Waldman, CNB’s senior vice president said.
But there is more than to consider than interest rates, added Katie Donovan, CNB’s consumer loan officer, added. While interest rates are low, costs for materials remains higih.
“A lot of builders are booked out for the next 120 days,” Donovan said. “They’re looking beyond that for things to keep them busy.”
While some are content for large-scale construction projects — such as building a new home from scratch — others are eager to deal with homeowners who are refinancing to remodel or expand.
“It’s a balancing act,” Gilpin agreed.
HEATHER CURRY, assistant vice president for mortgage lending at Citizens, noted a growing discrepancy between the numbers of those refinancing for repairs than those taking out new mortgages to buy or build.
“We’re just not financing a lot of purchases,” she said. “A lot of people are getting pre-qualified, but they’re not finding homes in their price range.”
