West Lafayette, Indiana is 65 miles northwest of Indianapolis, in Tippecanoe County. It was formed in 1888 with the merger of several smaller towns. The 2000 census counted just below 30,000 residents in the city. West Lafayette, Indiana is home to Purdue University’s main campus, which opened its doors in the 1870s and currently has approximately 40,000 students and employs about 12,000 people. West Lafayette overlooks the Wabash River, which borders the city on the south and east.
Are you considering purchasing a home in West Lafayette? Do you have a mortgage now and want to consider a refinance plan? If you have had a mortgage for several years, do you know how to take advantage of the equity in it? Let’s look at these questions in-depth.
The Loan Process
If you are considering buying a home in West Lafayette or wish to refinance an existing mortgage, you will first need to accumulate pertinent paperwork to show to a lender you choose. You will need:
Your lender will also need to run a credit check on you to determine how you have handled your finances in the past. Once you are approved, the next decision you need to make is which type of mortgage loan is best for you.
Fixed rate mortgages mean just what they say: you obtain a fixed interest rate for the duration of your loan, whether it is for a 15- or 30-year mortgage commitment. If you know how much you can pay each month and get a good interest rate, a fixed rate mortgage will let you keep that interest rate and monthly payment amount for the life of the loan.
Adjustable rate mortgages let you start a little more tentatively by agreeing to give you a lower interest rate for the first few years. After the first few years, the interest rate will be subject to change with the existing economy and market indexes. This can save you money in the beginning, which often can be a critical time in utilizing your resources the best you can.
Home Equity Loans
If you have been paying a mortgage for a few years, you have equity built up. You can take that equity out in cash with a home equity loan. Equity is the difference between what you owe on your loan and your home’s value. With a home equity loan, you get the equity in cash as a lump sum. You begin to accrue interest on that money as soon as you receive it.
With a home equity line of credit, you have access to the same amount of money, but you only borrow what you need at a given time, thus only paying interest on the amount you borrow instead of the entire lump sum. It depends on how much cash you need and the time frame in which you need the money. Unexpected expenses are part of life – they just seem to happen.
The option to refinance a mortgage or apply for a home equity loan is available to you. Take advantage of these options to more fully enjoy your life. Please fill out the form below and start making the most of your options.
