Home to some of the top shopping locations in Sacramento County, California, Arden is a great place to live. It has a specialty shopping center that is nearly fifty years old, with upscale dining and shopping. If you enjoy contemporary lifestyle with traditional architecture, you should consider a home in Arden.
If you think that you could be in the market for a refinance or mortgage then it is important to make sure you choose the right loan to meet the needs of your situation. There are a few different types on the market in Arden that may be able to get you what you need.
Nontraditional Mortgages
Interest-Only Loans: If you think your income could be increasing over the next few years, this may be the right loan for you. It is a type of adjustable-rate loan, but for the first part of the loan you’ll pay only toward the interest, making your payments a lot lower than they might be with a traditional fixed- or adjustable-rate mortgage. After the ten years are up, though, expect much higher payments, as the principal will also be figured into your payments.
Balloon Loans: If you’re looking for the lowest interest rate you can possibly get, this type of loan may be the one for you. The drawback to this loan is that it reaches maturity in just five years, so unless you plan to sell your home or refinance again before maturity, you have to be prepared to pay a large balloon payment at the end of the loan’s term.
Options ARM: These loans work really well if you are not sure how much you can pay each month. Choose from a minimum payment, an interest-only payment, a fifteen-year amortized payment, and a thirty-year amortized payment each month so that you can adjust to accommodate your immediate financial needs each month.
Traditional Mortgages
Fixed-Rate: These loans come with one interest rate for the life of the loan. These are great loans for individuals who need to carefully follow a budget each month, because they are safe and easy to plan for.
Adjustable-Rate: These kinds of loans have an interest rate that can change as the loan progresses. When you apply for this type of loan, your lender will want to discuss several terms with you. The adjustment interval, the time between interest rate adjustments, can vary greatly. The index is how the lender figures the interest rate on your loan each time, and can be a big influence on this loan. The caps are the protections your lender puts in place to make sure you payment amounts don’t change too much in one period. This type of loan is great for individuals who need lower starting payments since they can offer lower rates than a fixed-rate loan, because you are taking on more risk than the lender is with a fixed-rate loan.
Once you have decided which Arden loan is best for you, you will need to figure out who you will get the loan from. Shopping for a lender is all about homework: look around for the best interest rate and loan costs you can get. Additionally, ask around about penalties and mandatory arbitration, which can be red flags for dealing with a predatory lender.
Once you have chosen your Arden loan and lender, you are ready to get started. If you want to investigate some of these options, take a few moments to fill out the form below. In a short time, you will be in touch with a qualified lender that can give you all the information you need.
