Davie, a family-oriented and diverse community that retains its hometown feeling, offers customer friendly services to its residents and is a unique jewel of a town in central Broward County, FL. Davie treasures its environment, rural and equestrian lifestyle, while attracting, encouraging, and retaining many economic and educational opportunities. Located in the Miami-Fort Lauderdale metro area, Davie is a great place to live. Whether you’re a new resident or a longtime local, the question of choosing the right home loan is an important one. We’d like to help you decide which mortgage, refinance, and home equity loan is right for you whether you’re a longstanding resident or new arrival.
There are many options available for loans today. How can you know which one to choose? There is a way to find the right mortgage, refinance, or home equity loan for you. One way to start is to ask yourself these questions.
Do you want a Traditional Fixed Rate Mortgage?
If you want a set interest rate for the life of the loan, you need your payment to stay the same for the entire fifteen or thirty year term, or you need to follow a monthly budget, then you probably want this type of loan.
Would you prefer an Adjustable Rate Mortgage?
If you need lower starting payments and you plan to stay in the home for only a few years you may want to choose this kind of loan. Just be certain that you can adjust to an interest rate that may change. Be prepared to discuss the following with your lender:
Adjustment interval - how frequently the interest rate on the loan changes
Index - how the lender determines the interest rate on your loan
Caps - limits your lender has to make sure that your payment amount doesn’t change too much during one period
Is an Interest Only Loan a better option?
If you think your income will rise during the next few years or you need lower payments for a few years but expect to be able to make higher payments later on, this may be your loan. This is a type of adjustable rate loan, where you pay only the interest for the first ten years. After those first ten years, however, you can expect much higher payments when the principal balance is also figured in.
Should you choose an Options ARM instead?
If you are uncertain of how much you’ll be able to pay each month and would like to be able to choose from a minimum payment, an interest only payment, a fifteen year amortized payment, and a thirty year amortized payment each month, then this is your best bet. As always, remember to read the fine print and be sure that your lender explains all the terms so that you understand them.
How about a Balloon Loan?
If your biggest concern is getting the lowest interest rate available right now, this may be the one for you, but only if you plan to pay off or sell your home within five years. The drawback to this loan is that it reaches maturity in only five years, so make sure that you are prepared for a big change when that happens.
When you have chosen the right mortgage, refinance, or home equity loan, then you need to choose the right lender. Be certain to shop around and compare interest rates and loan costs. You should also get the terms in writing from each lender you speak with. This will help you to make your final decision. Ask about any term you are unfamiliar with and read all of the fine print. That’s the way to protect yourself from predatory lenders.
Be sure to tell to your lender about your individual needs. There are many options for today’s refinance, mortgage, and home equity loans. When you are ready to apply for the loan, you will need some documents, so gather these ahead of time. Put together the last few months of paystubs, bank statements, and cancelled rent or mortgage checks. You will also need the last two years’ federal tax returns, W-2s and 1099 forms. Be ready for lenders to ask you about your current employment, employment history, and any assets that you have.
You can start your search for the perfect loan today! All you need to do is fill out the form below, and a lender will contact you to discuss your individual home loan needs.
