Green Bay plans 1% interest, 20-year fixed mortgages for college graduates

GREEN BAY – Green Bay’s mayor says he has big plans for college graduates looking to buy a house in the city.

Mayor Jim Schmitt talked about his plan Tuesday night during his state of the city address.

Schmitt’s plan would use millions of dollars in expected excess stadium sales tax revenue. However, current law states that money must sit in a fund until 2031.

Schmitt is calling his plan the GRAND program. It stands for Graduate Recruitment and Neighborhood Development.

“This program will work to elevate higher education, energize our talented workforce, reinvest in our neighborhoods, and encourage hundreds of perspective homeowners,” said Schmitt.

Schmitt’s preliminary plan would let someone who graduated college within five years eligible to receive a one percent, 20-year fixed mortgage to buy a house. There would be no closing costs. Eligible homes would be in city limits and at least 50 years old.

“Neighbors and neighborhoods located next to college graduates tend to do better from an appreciation standpoint and a maintenance standpoint,” said Eric Witczak, executive vice president of Nicolet National Bank.

Nicolet National Bank would partner on the program.

The bank used a $109,900 Kellogg Street home as an example to show the potential value of the program. This example uses the minimum 10 percent down payment.

With the GRAND Program, payments over 20 years would be about $454 a month. Under a conventional 30-year mortgage, at 4 percent interest, monthly payments would be about $520.

Nicolet estimates the five-year value of buying the home under the GRAND program would be $19,164. After 10 years, the value would be $35,614.

City Council President Tom De Wane says the mayor’s plan is premature, considering a plan hasn’t been finalized for the excess sales tax revenue.

“That hasn’t passed, so you can’t put it into one category or can’t promise it to one group until it passes,” said De Wane.

more of this at: http://fox11online.com/2015/05/27/green-bay-plans-1-interest-20-year-fixed-mortgages-for-college-graduates/