Do you have an adjustable rate loan in Madison, Alabama and expect interest rates to rise soon? Does your existing mortgage have a higher interest rate than the rate on the market today? Now would be a great time to check into a refinance loan.
Refinance Loans
A refinance loan means that you take out a new loan to replace your existing mortgage. You will go through the entire loan process, from filling out the loan application and providing the necessary documentation to closing. You will choose a new mortgage type, a new interest rate, and a new term.
There are many reasons you might choose to refinance. You might want to switch from an adjustable rate mortgage to a fixed rate mortgage. This is most beneficial to you if interest rates are rising and your loan is close to an adjustment period. You could also benefit from switching to an adjustable rate mortgage from a fixed rate mortgage. Adjustable rate mortgages typically have a lower interest rate in the beginning. Your mortgage payments will decrease with either of these choices. The money you save by lowering your mortgage payment can help you pay off credit card bills, medical bills, or education costs.
With the help of a knowledgeable loan officer you can research the possibilities and qualify for a loan that will work best with your current situation.
Home Equity Loans
Home equity loans are also an option if you have lived in your home for a while. Equity is the difference between the value of your home and the actual amount you owe on the loan. You can borrow money on the equity you have earned in your home. You have a choice of either a line of credit or a lump sum payment. Home equity loans usually have 10 to 15 year terms. You can use the money for anything from remodeling or repairs on your home to taking a family vacation or even buying a new car.
Mortgage Options
If you are relocating or moving from one house to another in Madison, Alabama you may be in need of a mortgage. With the many mortgage types available, your loan officer will be able to explain them and help you determine which will work best for you and your family.
After discussing your situation with your loan officer, you will be asked to fill out a loan application and provide personal and financial information. Necessary documentation needed will be your employment history, credit history, tax records, current housing expenses, pay stubs, and bank accounts. Make sure you fill out the form as accurately as possible so that there will be no delays getting your loan approved. All of this information will allow the loan officer to determine how much you will be able to borrow.
Mortgage types available include fixed rate, adjustable rate, interest-only, and balloon.
Finding the right mortgage for you is an important decision you and your loan officer will make. If you do not plan on living in your home for a long period of time, then an adjustable rate or balloon loan may be a good choice. Both of these start out with a low interest rate in the beginning. An interest-only loan will work for you if you expect your income to rise in the next few years. This loan type has lower mortgage payments in the beginning, since you only pay on the interest. When the principal is added in, obviously your payment will increase. With a fixed rate loan, your mortgage payment will be the same for the duration of the loan. Your loan officer will be able to explain these types of loans to you in detail.
Contact our office today to make an appointment with a loan officer to discuss a mortgage, refinance loan, or home equity loan in Madison, Alabama.
