Guide to Refinance, Mortgage,
& Home Equity Loans in
Urbana, Illinois (IL)

You know, I do not think I have ever heard anyone make a negative comment about Urbana. People comment about how friendly the people are there, and how pretty the city is, especially places like Meadowbrook Park. They say Urbana is safe and that the schools are good and that it is an active, diverse community. They brag about Urbana Free Library, the first free library in the US and still one of the best. People just do not have anything bad to say about this lovely Illinois city.

You are probably either an Urbana homeowner or you want to be. You are considering some kind of home loan and maybe even looking for a lender. You are in the market for a mortgage for a home purchase, refinance or home equity loan, and you want to find the best loan package in all of Urbana. Here are some ways to make sure that happens:

1. Determine what your best loan package looks like. It is going to be different for everybody. Maybe you are a bargain hunter and you just want the best deal out there. Or perhaps you are starting a new job and a new career and you want to buy a permanent home where you will raise your family.
2. Decide how much you want your monthly payments to be. Even if you are looking at an adjustable rate mortgage, figure out what you want your initial payments to be. Your house payment may be the most important thing in your budget; a good guideline is that it should not exceed 1/3 of your take-home pay.
3. Check your credit report. If you have a credit score of less than 720, you are going to pay more for your loan, whether it is a new mortgage, a refinance or a home equity loan. Unfortunately, most credit reports have mistakes in them. If you have errors in your credit report, it could unfairly lower your credit score and cause you to have to pay more interest than you should.
4. If you are purchasing a home, put down as much as you can. Conventional wisdom says you have to have a 20% down payment to buy a home. That is no longer true, but a substantial down payment can get you a better interest rate.
5. If you are cashing out your equity, compare a home equity loan with refinancing. You could save money by refinancing instead of taking out a second mortgage.
6. Look at your goals. Where to you plan to live in 5, 10 or 15 years? If you are buying and you will only be in the home for five years or so, consider a low-interest ARM or even a balloon loan that has to be paid off in five years. If you are refinancing, however, and only plan to stay in the house five more years, you will probably not save any money.
7. Consider the term of the loan. That is how long it will take you to pay the loan off, or the number of payments you will make. The most common terms are 15, 20, 30 and 50 years. The faster you pay the loan off, the less it will cost you. On the other hand, spreading the payments out over a longer period lowers your monthly payment.
8. Find the right lender. The right lender makes all the difference. Some lenders just want to sell you a loan, and some really do want to help you buy a home for your family, refinance your existing home or get the right home equity loan. Complete the form at the bottom of this page, and we will help you find a lender who will get you the best deal in Urbana.

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Last Updated: Tuesday, May 22nd 2012