CONSUMER LOANS

Our focus is to help our clients have a better life, and lending money to individuals is an important part of that. You'll discover our wide range of credit products, quick approval process, flexible terms, and convenient repayment options make borrowing easier for you.

• Mortgage Rates
• Home Equity Loans
• Home Equity Line of Credit (HELOC)
• Fixed Rate Home Equity Loan
• Home Mortgage Loans
• Online Mortgage and Home Equity Application
• Auto Loans
• Personal Loans
• VISA Personal Credit Card Services
• Financial Calculators
• Consumer Credit Center

HOME EQUITY LOANS

As a home owner, our Home Equity Loans are the best way to borrow money for today or tomorrow. FREESTAR Bank offers all the benefits of Home Equity Loans plus the quality service provided by the FREESTAR staff. Consult your tax advisor regarding the deductibility of interest.

HOME EQUITY LINE OF CREDIT (HELOC)

This just may be the last loan you'll ever need. Use the equity you've established in your home to finance the things you want and need.

• Instant credit.
  You can use it whenever you need to, for whatever you choose: investments, automobile purchases, vacations, home improvements, college expenses, appliances, shopping, and anything else!
   
• Apply only once.
  When you use it and pay that principal, your line automatically replenishes itself and is ready to use again and again, all without signing loan papers! Your FREESTAR line is a 15 year agreement, one of the longest in the business.
   
• Quick Approval.
  Since you may have already completed your home loan with FREESTAR Bank, we already have the paperwork we need!
   
• Flexible Terms.
  Terms include low rates, no points, and flexible repayment terms. The modest annual fee can be off-set entirely or in part by interest paid on the loan over the year.
   
• Tax deductible.
  Perhaps the best advantage, over consumer loans and credit cards is the potential for a tax deduction on the interest you pay. Please consult your tax advisor for details.

FIXED RATE HOME EQUITY LOANS

Some clients choose our fixed rate home equity loan, where you borrow a specific amount and make regular fixed monthly payments. These terms can help you plan your budget, while still retaining the tax advantages of a home equity-secured loan. Please consult your tax advisor for details.

ONLINE HOME EQUITY LOAN APPLICATION -Complete your application online.

HOME MORTGAGE LOANS

Just as shopping for a home includes working with a Realtor and the evaluation of many different home styles and options, finding the right financing is equally important. FREESTAR Bank will provide you professionalism and experience while offering you competitive interest rates and outstanding service. Our job begins with fully understanding your needs and both short and long term goals and finding a loan that is right for you. We will discuss various options with you and learn what type of financing is right for your situation. We evaluate the market, all of the current products, rates and underwriting guidelines to find the very best loan product for your needs. At FREESTAR Bank, “life keeps getting better” for our clients who take advantage of the expertise and vast product offerings we bring them.

It wasn't too long ago that a 30 year fixed rate mortgage was your only option. Many loan programs exist today and to help you explain how they work, we have provided the history and descriptions of the basic loan programs available. Our mortgage professionals will explain the various loan programs offered.

The following factors should be considered when evaluating loan programs:

• Importance of payment security.
• Ability to qualify at market rates for loan amount selected.
• Anticipated term of occupancy.
• Expectation of stable versus rising income.
• Level of market rates - high versus low.
• Possibility of significant rate changes.
• Existence of up-front costs.
• Desire for rapid equity build-up.

The following program descriptions are intended to help you understand the benefits and drawbacks of each of the various instruments. If you'd like more information on personal mortgages please contact one of our vendors listed below.

ONLINE MORTGAGE APPLICATION - Complete your application online.

• Or, click here to print out a mortgage application.

Types of Mortgages

Fixed Rate Mortgage: A standard fixed-rate loan has a fixed interest rate, a fixed monthly payment, and is fully amortizing over a given number of years (for example, 15 or 30 years). A portion of each monthly payment covers the interest due on the loan. The remaining portion is applied toward the reduction of the principal balance. Regular payments systematically reduce the loan balance until the loan is paid in full.

The standard fixed-rate mortgage is still the most popular mortgage loan type. Its popularity is tied to the security that a fixed rate and fixed payment offer to borrowers who are reluctant to assume the risk of fluctuating interest rates. The availability of different loan terms offers borrowers the security of a fixed payment but allows for flexibility in the size of the monthly mortgage payment as well as how quickly the principal balance can be paid down. Several fixed-rate loan terms exist:

30-Year vs. 15-Year

30-Year Mortgage:

How it Works: The borrower pays down the entire principal in 360 equal monthly payments.

During the first 10 years, more than 84% of the monthly payment is applied to interest and therefore is tax deductible. Pay-down of principal occurs slowly. It is not until the 22nd year that 50% of the principal balance is paid off. Therefore, a 30-year term is appropriate for borrowers for whom an affordable monthly payment is more important than the rapid reduction of principal.

15-Year Mortgage:

How it Works: The borrower pays down the entire principal in 180 equal monthly payments.

Historically, the interest rate is approximately 1/4- 1/2% lower than that of a 30-year, fixed-rate loan, but because of the reduced loan term, the monthly payments are approximately 28% higher. About 50% of the principal balance is paid off in the first nine years. Clearly, this product appeals to borrowers whose main concern is rapid equity build-up.

When rates are low, this product is also popular with borrowers who are refinancing 30-year loans. Such borrowers will often forgo the savings in monthly payment that lowering the interest rate on their 30-year loan would produce and instead select a 15-year term and its corresponding accelerated amortization. This choice not only shortens the payment period, but also substantially reduces the borrower's total interest paid on the loan.

Other loan terms have been created over the last decade, such as 20 and 25-year terms. While not as popular as the 30 or 15-year terms, they do offer additional options regarding size of monthly payments and speed of principal pay-down.

Balloon Mortgages:

How it Works: The borrower makes equal monthly payments that are typically based on a 360-month pay-off schedule.

Instead of taking 30 years to pay down the mortgage, payment in full of the outstanding principal balance is due at a specific time prior to the end of the 360-month period. Hence the name "balloon." This balloon payment, typically after 60, 84 or 120 months (or 5, 7, or 10 years), allows lenders to offer slightly lower interest rates than a 30- year, fixed-rate mortgage because their funds are not tied up for 30 years and therefore are available to be reinvested at market rates. Most borrowers who take advantage of the attractive interest rates offered by balloon mortgages anticipate selling or refinancing the property prior to the end of the balloon period.

Adjustable Rate Mortgages:

Adjustable-rate mortgages (ARMs) have fluctuating interest rates and the potential for changing payment amounts. ARMs help lenders cover the cost of lending money in a changing economy by transferring a portion of the interest rate risk to borrowers. In exchange for borrowers sharing the risk, lenders offer an initial interest rate that is substantially lower than the rate for fixed-rate loans.

1-Year ARM : A one-year ARM adjusts annually, with each adjustment typically limited to a 1% to 2% increase. A maximum lifetime cap of 6% is common. One-year ARMs offer attractive initial interest rates to borrowers who are willing to accept the uncertainty of future rate and payment changes. If the borrower puts less than 20% down, the borrower is typically qualified using the maximum first-year adjustment rate.

3-Year, 5-Year, 7-Year or 10-Year ARM: These ARMs have initial adjustment periods of three years, five years, seven years or ten years respectively, after which they convert to annual adjustment periods similar to a one-year ARM. Each adjustment is typically limited to a 2% increase with a lifetime cap of 5% or 6%. Variations of the basic ARM programs do exist.

Convertible Arms:

Many ARM programs offer the option to convert from an adjustable rate to a fixed rate at specified times during the term of the loan. This option is attractive to many borrowers, but is not without additional cost. Lenders generally collect a fee of between $100 and $250 to cover the administrative costs of the conversion. In addition, the new rate is generally higher than the market rate at that time for a fixed-rate loan. Borrowers should be sure to weigh the benefits of choosing a convertible ARM versus the potential costs of a traditional refinance if rates change.

New Construction

We can also finance the new construction of your home with a Residential Construction Loan. We make your building process easier by streamlining the draw process so you can pay your sub-contractors on time and keep the work moving.

Calculator

We look forward to working with you. Please call:

McLean County
Gary Richardson PH: 309.661.9993, Email: gary.richardson@freestarbank.com
Sandy Marshall PH: 309.661.9993, Email: sandy.marshall@freestarbank.com
Brandon Endress PH: 309.747.3408, Email: brandon.endress@freestarbank.com

Champaign County
Patty Carter PH: 217.351.6565, Email: patty.carter@freestarbank.com
Annette Casagrande PH: 217.344.1300, Email: annette.casagrande@freestarbank.com

Livingston County
Roger Corrigan PH: 815.842.8127, Email: roger.corrigan@freestarbank.com
Rebecca Underhill PH: 815.842.8128, Email: rebecca.underhill@freestarbank.com

AUTO LOANS

In need of a new car or second car? New, or used, FREESTAR Bank can put you on the road with a loan tailored to meet your needs.

We offer quick service, competitive rates and flexible repayment plans to fit your budget. Your payments can be automatically deducted from your bank account each month.

PERSONAL LOANS

Whether you're buying a boat, RV, new appliances, remodeling, financing an education, or consolidating bills, we have a loan just right for you. Long-term or short-term, we can customize a loan to fit your individual needs.