Guide to Refinance, Mortgage,
& Home Equity Loans in
Belleville, Illinois (IL)
Located in southwest Illinois, Belleville is actually one of the more pleasant suburbs of the St. Louis metro area. It is a lovely family community with tree-lined streets, nice parks and a wealth of community activities.
Healthcare is the largest employer in Belleville, an industry that provides plenty of stable jobs. Belleville’s unemployment rate is dropping, and more jobs are being created that do not require a commute to St. Louis. That commute is, however, a fairly easy one, and usually takes around half an hour.
Schools and church are important to Belleville residents, too. Downtown Belleville is beautiful and encompasses the historic district. You find quaint shops, galleries and clubs with a sophisticated arts and music scene.
Those are only a few reasons that people love living in Belleville. The cost of living is low and it is one of the last places in the country where nice homes are still very affordable. Belleville’s average home costs less than $150,000; the US average is still well over $200,000.
If you are buying a home in Belleville, or if you own a home and are refinancing or taking out a home equity loan, and you do not already know it, you will quickly learn that mortgages are complex. There are a lot of choices and options and decisions to make and each one affects how much you will pay for your loan in the long run. Here are a few tips to help you make sure you do not pay any more than you absolutely have to:
- Compare interest rates. This is not as easy as it would seem. For instance, it is hard to compare fixed rate and adjustable rate loans because they are not the same type of loan at all. You can compare the APR’s, which is not the same as the interest rate. The APR is figured over the life of the loan and includes other costs. If there is not much difference in the APR’s, a fixed rate loan is usually the better buy. It is not the only thing to consider, though.
- Consider paying points. Paying points amounts to prepaying some of the interest in order to get a lower interest rate. You will not recoup the up-front cost of points unless you live in the home for at least a couple of years. Ask your lender to help you figure out how long you have to live in the home before you break even on the cost of the points.
- Ask for a GFE guarantee. The lender must give you a Good Faith Estimate of all fees within three days of your application for a home loan. She is not required to guarantee the estimate, but may if you ask. Sometimes the lender cannot guarantee every fee because some depend on 3 rd party fees, but she can guarantee all the other fees.
- Ask for a 30-day loan lock, and get it in writing. You should not have to pay a fee for this, and it guarantees that you will not pay a higher interest rate if rates rise before your loan closes.
- Refuse prepayment penalties. Some loans, especially ARM’s with very low introductory interest rates, assess a penalty if you refinance the loan within a certain period of time. Sometimes you will pay the penalty if you sell the home, too. If there is a chance you could have to sell the home and move within a couple of years, do not accept a loan with a prepayment penalty.
- Do not be afraid to negotiate. Not everything is negotiable in a home loan, but some things are. Make sure you thoroughly understand every charge and fee in your contract and negotiate everything you can. If a lender wants your business, he will work with you. If not, there are lots of lenders out there.
We want to help you find the right one. Simply complete the form at the bottom of this page and one of our agents will contact you to discuss your home loan and assist you with finding the right lender.
(Click on any city name below for more information on finding a local or national lender near you & saving money!)
