Guide to Refinance, Mortgage,
& Home Equity Loans in
Overland Park, Kansas (KS)
Overland Park is the second most densely populated city in the state of Kansas.
Overland Park houses five reputable colleges and universities. There are 59,704 households in the city, with a median income per household of $62,116, and a median house-for-sale price of $188,100.
If you like wide-spanning plains and fast-growing city borders, Overland Park could be where you belong.
Mortgages
Once you find an appropriate home to buy in Overland Park, look at your different mortgage options:
- A Fixed Rate Mortgage (FRM) is good if you plan on staying in Overland Park for quite a few years. An FRM is a mortgage whose interest rate stays the same for the entire term of your loan. Most FRM Mortgage-users get 15- or 30-year loans, but there are shorter FRM terms available, and also 40- or 50-year FRMs.
- In an Adjustable Rate Mortgage (ARM) the interest rate is altered from time to time, based on an interest index. If unpredictable interest rates make you reluctant to take an FRM, the ARM can allow you leeway to frugally deal with such interest changes. As with other loans that increase with time, ARMs have “caps”, or limitations on charges, to reduce the borrower’s risk of financial difficulties. Caps apply to three aspects of the mortgage loan.
- Frequency of the interest rate change (i.e. interest adjustments made once every 6 months—1% per adjustment, 25 total/year).
- Periodic change in interest rate (i.e. interest adjustments made only once a year, usually 2% maximum).
- Total change in interest rate over the life of the loan, sometimes called life cap (i.e. interest rate may change no more than 1% in a year).
- In a Balloon Payment Mortgage, you pay smaller monthly rates, leaving a “balloon” sum for you to pay off at the loan’s maturity. Typical Balloon Payment Mortgages are 5- or 7-years in durations and a good option if you do not intend to stay in Overland Park for more than a few years. This way, you can sell the home before the time comes for you to pay the balloon sum, all the while saving money on interest.
- You might like to Buy to Let (BTL) which is buying a residential property in Overland Park and renting it out at a profit. Buying to let can lead to a steady income, as well as steadily elevating the monetary value of your rental property. Recent studies show that at least 71% of landlords make a worthwhile profit. The amount of money you can borrow to buy a rental property depends largely on the financial value of the property. The borrowable amount tends to fall somewhere between 120 and 150% of the property’s purchase value. Other lenders may give a three times’ salary multiple plus half the rental income. The interest rates on BTL properties are usually comparable to residential mortgage rates, but may charge higher fees. The affluent Overland Park incomes and comfortably-priced homes should make it a fine Buy-to-Let location.
If you already have the Overland Park mortgage that you need, maybe it is time to consider a refinance or a home equity loan. In the case of a refinance, many of the same mortgages above apply. Check with your lender about which one might be right for you. In the case of a home equity loan, you will need to think about whether you want a traditional home equity loan or a line of credit.
For more information on mortgages, refinancing, or home equity loans, please fill out the form below, and a lender will contact you to discuss your needs.
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