Located just twenty minutes north of Chicago , Evanston residents enjoy easy access to big-city benefits while delighting in a fine college town. As the home of Northwestern University, Evanston offers plays, live music, arts, and culture. A classically beautiful community, with mature trees and a spectacular location on Lake Michigan , Evanston is diverse in many ways. Evanston also offers both public and private transportation options.
With all that Evanston , IL has to offer, no wonder there are so many reasons to choose a mortgage, refinance, or home equity loan here. We hope to make your home loan decision simpler. Here is some basic information to help you get started in your search for a home loan.
Types of Loans
The Traditional Fixed Rate Mortgageloan has an interest rate and monthly payment that stay the same for the life of the loan. The Adjustable Rate Mortgage loan has an interest rate that changes after a certain period of time. This gives you a lower starting payment, but the payment amount will change whenever the interest rate does over the life of the loan. The Interest Only Loan is an adjustable rate loan that allows you to pay interest only for the first ten years, making your payments lower. After that, however, you have much higher payments. The Options ARM loan allows you to choose each month whether to make a minimum payment, an interest only payment, a thirty year amortized payment, or a fifteen year amortized payment. The Balloon Loan may provide the lowest interest rate. This loan, however, will be due in only five years. This may not work for you unless you plan to sell your home in that time. Be sure to understand the loan you choose completely before you sign anything.
Refinancing
There are many reasons to refinance. If you think that your interest rates are too high or have recently gone up, if you don’t currently have a fixed rate, or if your financial situation has changed, then it may be time to look into refinancing. You can find the refinance loan to fit your current situation. Most types of loans are available for refinances. Keep in mind that a refinance loan actually replaces your first mortgage, but in most cases, you’ll have an extra choice when you get ready to refinance – the choice to cash in the equity you’ve built up in your home. Talk with your lender about what’s right for you.
Using Home Equity
If you want to take advantage of the equity you have in your home you have some choices. You could refinance with a cash-out, but that requires replacing your first mortgage. Your other options are to take out a separate home equity loan, or choose a home equity line of credit, where you only borrow from your equity when you need to. Discuss these options with your lender.
Choosing Your Lender
After deciding on which type of mortgage, refinance, or home equity loan you want, you still need to choose the right lender. Always ask lot of questions. Find out about penalties, fees, and all terms of any loan you are considering. You should understand everything about each loan and lender before you sign. Look not only for the best interest rate, but the total loan costs to find the best loan. Ask for a good faith estimate of all fees for your loan. Find out if the lender guarantees the GFE, and if they don’t, find out which fees might change. This will lead you to the best decision.
Evanston , IL is a wonderful place to live. You can either find the home of your dreams here or refinance your current home. We want to help you find your new home mortgage, refinance or home equity loan. Fill out the form shown, and soon you’ll have the help of a broker who will contact you to discuss your personal home loan needs.
