Do you own a home in Lake Elsinore, California and need some help with your financial situation? Either a refinance loan or home equity loan may be just what you need.
Refinance Loans
A refinance loan will replace your existing mortgage, which can change your mortgage type, your interest rate, and the term of the mortgage. With a lower interest rate or mortgage type, your mortgage payment will decrease. Think of all the bills you can pay or the vacation you can plan for with the cash you will have left every month. You will go through the same loan process that you did with your existing mortgage, from filling out the loan application to closing.
Home Equity Loans
Home equity loans allow you to borrow money on the equity you have earned in your home. The equity is the difference between the value of your home and the amount still left on the loan. This loan can either be in the form of a lump sum payment or a line of credit. If you receive a lump sum payment, you will pay interest on the entire amount. If you receive the line of credit, you will pay interest only on the amount you borrow. Home equity loans usually have terms of 10 to 15 years. This money will be available for you to pay education expenses, buy a new car, or even purchase another house.
Mortgage Options
It is important that you find a loan officer to help you through the loan process and mortgage selection. Mortgage types available in Lake Elsinore, California include fixed rate, adjustable rate, interest-only, and balloon.
Fixed rate loans are the most common types. These loans will have the same mortgage payment each month for the duration of the loan, which is typically 15 or 30 years.
The mortgage payments with an adjustable rate loan can change when the loan reaches an adjustment period if the interest rate is higher or lower than the original rate. Adjustment periods are typically 1, 3, or 5 years.
Interest-only loans have mortgage payments that go towards the interest for the first 10 years. The principal is added in at that time, so your mortgage payment will increase.
Balloon loans will have the same mortgage payment every month for the duration of the loan, but the loan will have to be paid in full at the end of 5 years. This can be done with a lump sum payment or even by the sale of the home.
There are other mortgage packages on the market that your loan officer can investigate and determine if they will work for your situation.
Documentation
It is important that you understand what documentation is needed to apply for a loan. You will be asked to fill out a loan application at the first meeting you have with your loan officer. This form will require you to provide a lot of personal and financial information. This information will include your employment history, credit history, current housing expenses, tax records, pay stubs, and information about the house you are trying to purchase. This is why it is important for you to find a loan officer you can trust to keep this information safe. Filling out this form completely and accurately will allow your loan officer to determine which mortgage type will work best for you. It will also influence the interest rate you receive, the term of the loan, and the actual mortgage payments you will have.
After you have been approved for your loan, a meeting will be set up to close the deal. Your loan officer will schedule the closing. You will be asked to sign your name on a lot of documents and to pay your down payment and closing costs. Make sure you understand the documents that you are signing and ask questions if necessary. At the end of this meeting, you will receive the keys to your new home.
Contact one of our knowledgeable loan officers to discuss your lending needs in Lake Elsinore, California.
