Beautiful Mobile, AL has almost five hundred thousand residents in the metro area. With a pleasant climate, a variety of industries, and a number of entertainment options, Mobile, AL a great place to own a home. Whether you are looking for a new mortgage, or you would like to refinance your current mortgage, the first step is to choose the right loan for you.
Most Mobile, AL refinance and mortgage products are similar. You will choose a loan that works with your current financial situation. Choose from traditional loan products like adjustable rate loans and fixed rate loans, or non-traditional mortgage products. Ask your lender about special options that might be right for your situation, but have some idea of the loan products you are interested in before you speak with a lender.
Traditional loan options
Traditional loan options include adjustable rate loans and fixed rate loans.
Adjustable rate loans have an interest rate that will remain the same throughout your first adjustment period. Choose a period of one, three, or five years for your first interest rate. After that first period, your loan’s interest rate may go up or down depending on market conditions. All lenders have an index they base their interest rates on, and if you want to know what your loan’s interest rate might do while you are paying for it, ask for a historical analysis of the index performance. Keep in mind, though, that your loan payment could go up after your initial adjustment period, so if that will not work with your budget, you should probably avoid this type of loan.
Fixed rate loans: One way to avoid an increase in payments is to choose a fixed rate loan. This type of loan comes with an interest rate that will last the life of the loan. Your payments will remain the same each month. Choose from a fifteen or thirty year term.
Non-traditional loan options
Non-traditional loan options for your refinance or mortgage loan in Mobile, AL are practically limitless. With the growth in the mortgage industry market, new loan options present themselves regularly, so no matter what your needs, there is probably a loan to fit them.
Balloon loans: If you plan to live in your Mobile, AL home for just a few years, enjoy one of the lowest interest rates on the market with a balloon loan. Keep in mind, though, that this loan reaches maturity in just five years, so if you are not expecting to sell or pay it off in a lump sum, this may not be the best option.
Jumbo loans: If you are looking at a much bigger property than most are, consider a jumbo loan. These loans do not conform to industry standards, so they come with a higher interest rate, but in the case of very expensive homes, it may be the only option.
FHA loans: If you need something that comes with a low down payment, ask about your eligibility for an FHA loan. With just a three percent down payment required and government regulated closing costs, it might be the perfect option for your initial mortgage or refinance loan.
Special Refinance Options
If you are refinancing, think about whether or not you want a cash-out option with your loan. This type of option allows you to convert the equity you have built up in your home to cash. Equity is the difference between the value of your home and the loan’s balance. Use the extra cash for whatever you like.
Remember that with a refinance loan, you will replace your old mortgage, so if you prefer to keep your old mortgage, but you would like to get that equity in cash, consider a home equity loan or line of credit. This will allow you to leave your initial mortgage in place, but it will still give you the cash you need.
Whether you need a refinance, mortgage, or home equity loan in Mobile, AL, take a moment to fill out the form below. One of our lenders will contact you right away to discuss your needs.
