Community & Education

Breaking down the construction process,  what you need to know

First Federal Saving Bank is your construction lending  partner, here to help bring  your vision to life.

We offer construction-to-permanent loans.

What is a construction-to-permanent loan?

A construction-to-permanent loan finances the construction of a house, then automatically converts to permanent financing on completion. This type of loan is sometimes called a single-close loan, as you only have to go through the closing process once. This type of financing only requires one round of  closing costs. At the time of the loan application, you can lock in the interest rate for the life of the loan.  Interest only payments are due during the construction phase.

How does a construction-to-permanent loan work?

Once you have closed on your loan you can get started on your construction. The construction term is typically 9 months. During this phase, you are only required to make interest payments along with an escrow payment, if applicable. The interest is calculated based on the loan proceeds that have been paid out to your builder to complete work on the home.

During construction, you’ll pay money to the builder for the work that has been completed. For your  protection and to make sure the amount needed to complete your project is always available, the bank authorizes payment only for items that are complete and installed. We work with you on all requests for payment, and you authorize every draw.

Once construction is complete, typically 4-5 draws over 6-9 months, your entire loan balance is drawn. Your loan then converts to fully amortizing loan of payments of  principal and interest over the term you selected.  There is no additional  closing, this happens  automatically, and your rate, term, and program have already been determined and locked in.

Enjoy your new home!

Apply now!

Insurance Made Easy

Insurance- something we all need, but seldom get excited about. It can be difficult to know what exactly you need to make sure you are properly insured. At First Fed, we are here to help. Let us be your guide into the oftentimes confusing world of insurance.

Here at First Fed, we offer a full suite of insurance products to meet your needs.

Products we offer

• Homeowners Insurance
• Renters Insurance
• Landlord Insurance
• Auto Insurance
• Umbrella Policies
• Commercial Insurance
• Pet Insurance
• Event Insurance
• Bonds
• Recreational Lines- Motorcycle, Boat, RV, ATV, snow mobiles, golf carts
• NEW! - Compact Tractor & E-Bike

Quoting Made Simple

Need coverage for your vehicles? There are several different coverage options to choose from:

Full coverage- protects you from comprehensive and collision claims as well as liability claims.

Liability only- this coverage applies only when damage is done to another party (physical damage or bodily damage).

Storage coverage- protects your vehicles that are not being driven at certain times of the year (antiques). A quick conversation with one of our agents can help you figure out the best fit for your needs.

Need coverage for your home, condo, or apartment? Be ready to tell your agent all about the place you call home. We may ask you about the square footage, how many bathrooms there are, whether you have a garage, and if you have a basement. Having your current policy on-hand can also come in handy in the quoting process.

The types of things your agent ought to know

Got a new roof recently? Send over an invoice from the roofing company and you will see a decrease in your price! 

Have a youthful driver who just got their permit? It is time to add them to your auto policy to make sure they are covered to drive.

Recently added additional square footage to your home? Call your agent! Let us make sure your home is insured to value.

Added a pool or trampoline to the backyard? Call! Let us make sure those are covered on your policy.

Discounts you do not want to be missing out on

Does your insurance company offer telematics discounts? If you are unsure, you may want to check as it is a fantastic way to take savings into your own hands! Here at First Fed, we have two companies that offer this discount. Essentially, this is a safe-driving rewards program that acts as an app on your phone. The better you drive, the more you save!

The more safety features on your car- the better! If you have anti-theft, automatic braking, or even lane assist on your vehicle, you can save!

Do you have deadbolts on your outer doors? Smoke alarms inside? Home security system? What about a fire extinguisher? If so, you may qualify for a protective-device discount on your homeowner’s policy!

Have a student in your household? Turn in their report card showing a 3.0+ GPA and you can get a discount on your auto policy!

Are you 65+ and have completed a safe-driving course? You guessed it... you can save!

Bundling is another great way to tag on those discounts. Are you in the market for home, auto, umbrella, life insurance, or even commercial insurance for your business? First Fed is a one-stop shop for all your needs. Depending on the rates, bundling may be the best option. Here, we will often mix and match within our companies to ensure you are receiving the best rate possible!

Feeling more comfortable about addressing your insurance needs? Call us for a complimentary quote! 815-434-0563

2023 Trends & 2024 Outlook

It is the time of year when we reflect on the past twelve months and make plans for the next twelve months. As Community Bankers, we need to be on top of finance trends that are impacting consumers, as we follow the markets and provide the best possible rates, products, and banking experience for our current and future customers.

Biggest Finance Trend From 2023 – Buy Now, Pay Later

If you’ve done any type of online shopping, you’ve seen Buy Now Pay Later, and many of you have probably used it. This innovative product allows you to break up purchases into four or less payments, typically at no additional cost to you. This product is filling a space that Banks are not; very small, very short-term loans. When used properly, it’s a great way to break up the cost of a larger purchase.

If you are using Buy Now, Pay Later, just beware of some downsides, which include:
• Getting overextended
• Paying high interest and fees
• Not building a credit history

If you have concerns about any of these, a more traditional bank credit product may be a better fit.

Biggest Surprise of 2023

Banking in person is back. 2023 was really our first year truly coming out of the pandemic, and we were so happy to see customers back in our offices, attending our events, working with our team in person. Face-to-face service, convenient location, knowledgeable and available staff, those things are still very important to our business. We cannot live without technology and convenience, but that needs to come hand in hand with in-person service.

Get out the crystal ball…where are rates going in 2024?

In 2023, the Federal Reserve raised rates to the highest level we have seen in decades in order to curb persistent inflation. While nobody likes high interest rates on home and business loans, we don’t mind high rates on CDs and investments. What we really want is a healthy economy with balanced short- and long-term rates.

In December, the Fed started to see the economic signals they were looking for, indicating that the rising cycle is likely complete. We do expect a declining rate environment in 2024, with most economists looking to spring for the first declines. The best economic news is that many economists feel we may have avoided a recession, which is good news for everyone.

Consumers also may not realize that while the Fed controls one interest rate, market forces react to Fed decisions. The outlook for 2024 rate declines has already caused home loan rates to come down over one percent since reaching highs back in October. We hope to see continued improvement in the housing markets sparked by lower rates in 2024.

Final Thoughts

Thank you to all our customers for choosing First Federal Savings Bank!

As a community bank, we strive to deliver competitive products, the latest technology, and personal service. When you bank with us, you are supporting your community. Your deposits will in turn be used to make loans-home, business, and personal loans. Our leadership and decision-making team are experienced, knowledgeable, and most important, local to our communities. We feel this is what sets us apart from our competitors.

If this sounds like the type of bank you are looking for, we want you to know:

The Feeling is Mutual.