Bristol, CT is a city of approximately 62,000 people located in Hartford County. Bristol is within close proximity to the city of Hartford, which is only 20 miles away. Real estate sales in Bristol are on the rise as more and more people look to get out of the big city, but still stay within commuting distance.
If you are looking to purchase a home in Bristol, CT, then you are also looking for a mortgage. If you already own a home in Bristol, CT, then you may be looking to refinance your mortgage or take out a home equity loan. Regardless of the financial product you need, the terms that are often used during the process of application can be daunting. We want you to understand the whole process of obtaining a mortgage, refinance or home equity loan.
Types of Mortgages
Mortgages come in two main varieties: fixed and variable rate mortgages. A fixed rate mortgage has a stable interest rate that is set at the onset of the mortgage term. A variable rate mortgage has an interest rate that changes throughout the term of your mortgage at different times, depending on the schedule set by your lender. There are many types of mortgages available, such as balloon mortgages and jumbo mortgages, but even most of the other types of mortgage revolve around the concept of fixed and variable interest rates.
Refinancing
Refinancing your mortgage is getting a new mortgage for the home you already own. The mortgage that you had is paid off and you have a new mortgage with a new lender with new terms and an interest rate. However, there are often penalties with your old lender that you will have to pay for paying out your mortgage before the term was up. A qualified lender will help you decide and figure out if refinancing your mortgage is financially responsible. You have to take in consideration the amount of the penalty you will have to pay and figure out how long it will take you to make up that penalty with the amount you will be saving with your new mortgage. In some cases, the savings can take more than a year to pay the penalties off, and if you are not planning on staying in your home that long, then you may want to reconsider refinancing your mortgage.
Home Equity Loans
Home equity loans give you the cash value of your home minus the amount owing on your mortgage to you in cash. There are two types of home equity loans: closed home equity loans that only allow you one loan and a lump sum of cash that is given to you upon approval. An open home equity loan is more of a revolving line of credit. You will have an account with a card to access the funds as you see fit. With a closed home equity loan, you would begin paying monthly payments back to the bank until the loan is paid off. With an open home equity loan, you make payments each month for as little as the interest that is due. If you make a larger payment to the principal of the loan, that money is once again available to you for your use. Many people take home equity loans to renovate their home, pay off bills or pay for their child’s college tuition.
Whether you are looking at buying a home, tapping into the cash value of your home or looking to refinance your mortgage with a better term and interest rate, there are many reasons to take out a mortgage. Regardless of your reasons, our qualified professionals can help you out. Fill out the form below to get started and one of our qualified lenders will get back to you shortly.
