Once you’ve found a home, you need a method of payment to purchase the home. For most people in the US, this means obtaining a mortgage.
Mortgages can be scary concepts. Some lenders have a tendency to throw all these big words at you and number figures that you do not understand. We can help you understand the terms used when ]obtaining a mortgage in Costa Mesa , CA .
Terms
If you are looking for a home equity loan or refinance loan, the same terms that follow will apply to you.
Adjustable rate --this term means that the interest rate changes at set intervals throughout the term of your mortgage, home equity loan or refinancing loan.
Fixed rate --this term means that the interest rate is stable throughout the term of your loan and is set at the start of the mortgage or loan.
Interest rate --usually the interest rate is set by the national prime interest rate plus points that the lender will charge.
Points above prime --this is the percentage rate that the lenders charge you above the original prime interest rate.
Term --the length of the loan or mortgage that you have taken out.
Mortgage --the money loaned to you by a lender to purchase a home.
Home equity loan --the money that you have essentially ‘saved’ since the purchase of your home by making mortgage payments. The equity is determined by the value of your home minus the amount owing on your mortgage. For example, if your home is worth $150,000 and your mortgage has $90,000 left owing on it, you have $60,000 worth of equity built up in your home.
Refinancing --most people choose to refinance their mortgage or loan when the interest rates are at an all time low or have been stably low for a period of time. Other reasons include steadily rising interest rates and an adjustable rate mortgage.
Balloon payment --a type of mortgage in which you must pay the balance owing on the mortgage at the end of the term.
These are just the basic terms that are used when you apply for a mortgage, home equity loan or refinance loan in Costa Mesa, CA or anywhere in the US. One of the keys to understanding the contract that you sign with a lender for a loan or mortgage is to ask questions. If you are not sure of a concept or term, do not be afraid to ask.
We can help find you the mortgage, home equity loan or refinancing loan that is best for you. We can match you with the product that will best suit your needs. By filling out the form below with your personal and financial information, we can get to work finding you a mortgage or loan. Just fill out the form below and a lender will contact you as soon as possible.
