Sarasota , Florida is one of the top retirement communities. Sarasota was a winter home for the John Ringling Circus. Even today, you can visit the winter home of John and Mabel Ringling, as well as the Circus Museum . The movie “The Greatest Show on Earth” used Sarasota in part of the making of the film. Whether you already live in Sarasota or wish to relocate there you will have plenty of homes to choose from.
Many homes are being built and others are being remodeled. You have a choice in the type of home you will buy and with finding the perfect home, you will need a mortgage. If you already have a home, you might be interested in the options a mortgage professional can provide for you.
A fixed rate mortgage is a loan with a set interest rate. This means your interest rate will never change throughout the life of the loan. Your monthly payments will also remain the same, making it easy for you to create a yearly budget. This is the top most advantage of the fixed rate mortgage. Another advantage is the years you can have the loan. Most loans of this type range from 15- 40 years with a 30-year mortgage being the most common. Knowing just what to expect from your mortgage is important especially when the interest rate varies.
An adjustable rate mortgage is a loan with a varying interest rate for the entire length of the loan. This means your interest rate may decrease or increase every few months or annually. While the initial interest rate is usually below 2%, this loan can become a disadvantage over time. First the life of these loans is shorter, usually 3, 5, 7, or 10 years. This means the two-hundred thousand you borrowed will be combined into fewer years than a fixed rate mortgage, making your monthly payments higher. Along with an adjustable rate mortgage you have options in the type. We will go over two of those options, interest only and interest/ principle. An interest-only loan means you will always be paying interest, but will not pay anything towards the balance. This is a short- term option for those who own their home to live in rather than as an investment. Usually, individuals who have trouble getting a loan with have this option to help increase their credit score to gain a better loan. The second option is better for those who chose an adjustable rate mortgage because you will pay down the balance of the loan.
Refinancing comes in hand when you have an adjustable rate mortgage and the interest rate exceeds what you can afford to pay per month. When you refinance you payoff your existing loan with a new loan. You will want to make sure the savings on refinancing far outweigh the costs of closing on a new loan. Basically you don’t want to refinance if you are not gaining the best interest rate you can find. Along with refinancing your old mortgage, you can consolidate your other higher interest rate debts into one loan and one monthly payment. This is beneficial when you are looking to save money.
The last option for those who have a loan is the home equity loan. This loan allows you to obtain the equity from your house, but unlike refinancing you incur a second mortgage. The second mortgage will have a special interest rate reserved for home equity loans, making it worthwhile. Equity is the value of your home minus the amount owed on your first mortgage. This equity comes to you in the form of money you can use to pay off other debts, remodel your home, or take a family vacation. What ever your needs there are options out there to help you manage your expenses and keep a good credit rating.
Please fill out the form below to speak with a mortgage professional about all of the options you have in Sarasota .
