Welcome to Ottumwa , Iowa , nicknamed the “ River of Opportunity .” Ottumwa is in Wapello County , Iowa and had just below 25,000 residents in 2000. Ottumwa is divided into north and south sections of the city by the Des Moines River. It is located in the southeastern portion of the state. Roseanne Barr’s TV series featured a restaurant that was based on one of Ottumwa ’s famous spots, “Canteen Lunch in the Alley.” It is famous for a “loose meat sandwich” called a “Canteen.”
If you are thinking of relocating to Ottumwa , Iowa , come to the Lunch in the Alley and have a “Canteen” while pondering your options regarding a mortgage, refinance option or a home equity loan.
Several options exist for mortgage loans. Two of the most common are:
A fixed rate mortgage will garner you a solid interest rate that you can keep for the duration of your loan. If you can obtain a good interest rate at the time of applying for your loan, then you can capitalize on your good fortune by keeping that interest rate for the entire term of the loan. Plus, you will have the ability to integrate consistency into your budget with the knowledge that your monthly mortgage payment will remain the same throughout your loan. Fixed rate mortgage loan terms are typically for either 15 or 30 years.
An adjustable rate mortgage allows you to start off with a lower-than-average interest rate for the first few years, with the knowledge that after those first few initial years, the interest rate will be able to change. This type of mortgage can save you money in the first few years of your loan, while enabling you to ease into the routine of monthly mortgage payments. Your interest rate can then change with the economic climate of the day and market conditions. Your monthly mortgage payments will also change as a consequence. The term of your loan can also change. You need to be able to adapt to the ebb-and-flow of rising and falling interest rates and mortgage payments. If you can do so, it can be to your advantage. Of course, if a fantastic interest rate comes along that’s just too good to pass up, you can always refinance to a fixed rate mortgage.
Other mortgage options you might want to consider include:
A 50-year mortgage is great if you have your heart set on a home with a higher-than-average cost. This mortgage type will let you spread your mortgage payments over a 50-year timeframe.
An interest-only loan lets you pay only the interest on your loan for the first 10 years. This can be a real money saver, if you budget wisely. After 10 years, you will need to begin repaying the principal amount, along with the interest payment.
A jumbo mortgage loan is an option you will need to talk to your lender about to see if it can benefit you. Jumbo loans are non-conforming loans that usually come with a higher interest rate, for a much higher loan amount.
An Options ARM is great if you’re not sure how much money you can afford to spend on your mortgage payment each month. An Options ARM offers you four choices: 1) a minimum payment 2) an interest-only payment 3) a 15-year amortized payment and 4) a 30-year amortized payment.
A Balloon loan is what you want if you are planning on selling your home in five years. With a Balloon loan, you can obtain the lowest interest rate available, but be sure what your plans are because this loan type matures in five years, and the full amount of your loan will be due then.
An alternate option is a home equity loan. If you’ve been paying into a mortgage for a few years, you have equity built up in it. Equity is the difference between the remainder of the loan you owe and your home’s value. A home equity loan allows you to access that equity in cash, with a lump sum payment, for any financial needs you may have.
If you are interested in learning more about your refinancing, mortgage or home equity loan options in Ottumwa , Iowa , simply complete the form below.
