The city of DeKalb, Illinois is truly a study in contrasts. On one hand, DeKalb is a small college town, home to Northern Illinois University, with a population under 40,000. On the other hand, it is a bustling suburb, less than 40 miles outside of Chicago. For most of DeKalb’s residents, the city provides a best of both worlds scenario, since it serves as a place to get away from it all and a launching point to enjoy one of America’s most vibrant cities. It is also a great place to enjoy collegiate athletics, with the University of Northern Illinois football team being one of the most respected clubs in the country. If you already call the city of DeKalb home, you might be interested in taking advantage of the great rates on refinances and home equity loans. If you are thinking about relocating to DeKalb, you are most likely in the market for a new mortgage. Here are a few helpful tips to guide you through the bank loan process.
Refinancing
Most people who are responsible with their money and meet their monthly mortgage payments every month do not even consider refinancing. For some reason, the idea of refinancing is only associated with people that are having financial troubles and need “extra help.” But, that could not be farther from the truth. A refinance is for anyone who was not in perfect financial shape when they got their first mortgage. And judging by the state of many first mortgages, that includes just about everyone. If you were not making the same kind of yearly income that you are now, a refinance is a perfect fit for you. If you have more investments and savings now then you did when you got your first mortgage, then refinancing is for you. Why should you consider refinancing? It is like a mortgage do-over. You simply take what you still owe on your mortgage, spread it out over a new pay term (15 or 30 years or you can even customize your term), and, in most cases, you will be rewarded with a better interest rate and better overall terms. A refinance is like a reward from a lender for proving that you are not a credit risk. Yes, banks do make money from refinancing, but if you feel like you are stuck with a mortgage that is eating away at your well being, or if you have a mortgage that you cringe every time you pay the statement, you should consider refinancing.
Mortgages
When it comes to getting that first mortgage, the key is patience and education. The patience comes in because the smartest thing you can do when you get your first mortgage is to shop around. Every lender is going to process your application in a different way. You may get one offer from bank A in your area, another offer from bank B in your area, and then completely different offers from Nationwide bank A, Nationwide bank B and then even more offers from online bank A and online bank B. It can be tough to restrain yourself and not jump at the first offer that sounds good, but patience is really the key here. Education is equally important. It really helps to have a working knowledge on how your mortgage works, what your interest rate really means and what all of the other parts of your mortgage also mean. Bank loans are very jargon-intensive and they can be a little scary if you have never been through one before.
Home Equity Loans
A home equity loan is the simplest of the three forms of loans to process and be accepted for. Be aware that your home will need a complete inspection by an appraiser before you will be approved. The bank will need to know the new value of your home and compare that number to how much you still owe on your mortgage.
If you would like more information on getting a home equity loan, a first mortgage or a refinance, please fill out the form below and one of our experts will contact you.
