First settled by the Puritans in the 1600’s, Malden, Massachusetts is a changing town. It now boasts a population of nearly sixty thousand residents, and has neighborhoods in “squares” around the city. With nearly thirty public parks and one of the oldest football rivalries in history, Malden is a great place to live.
If you are ready to make a move to Malden, one of the first things you will need is a great house. As you try to choose from names like Faulkner, Malden square, and Amerige, you need to begin to think about mortgages and which ones might fit your needs. Once you have identified a few products that would work well for you, it is a good idea if you sit down with a lender to get pre-approved for a loan. The pre-approval process helps you to better understand what type of loan you can afford, and it takes the hassle out of buying a home, as there are no fears that you cannot get approved for the mortgage you want.
If you already live in Malden, it might be time to consider refinancing your current mortgage. Home prices in the area have been on the rise for sometime, and the interest rates have been going down at the same time. That means that your home is worth more than you may have thought, and with lower interest rates, now is the perfect time to refinancing. This step-by-step guide should help you through the process.
Step 1 – Choosing a Loan
Refinancing involves replacing your first mortgage with a new mortgage loan, so the first step in the process is picking the right loan to meet your needs. If you initially had a thirty year fixed rate mortgage, maybe it is a good idea to move to an adjustable rate loan with a lower interest rate. If you had an adjustable rate loan, maybe you are ready for the security a fixed rate loan offers you. You have other options as well. If you currently have a shorter term on your loan, like fifteen years, you could move to a longer term, twenty-five or even fifty years, to help lower your payments. If you currently have a traditional loan like a fixed or adjustable rate loan, maybe you need a non traditional product like a fifty year mortgage or an interest only loan to better meet your needs.
Step 2 – Choosing the cash-out option
Equity is the difference between what you owe right now on your home and what your home might be worth on the open market. A cash-out option gives you the choice to convert the equity you have built up in your home to cash. For example, if your home is worth $140,000, but you only owe $60,000 on the home, you have $80,000 in equity that a cash-out refinance can offer to you in a check. Use that money to help pay for the kid’s college, home improvements, or whatever you like. Cash-out options come with almost all refinance loans, and in many cases, lenders will offer you up to one hundred and ten percent of the value of your home in a cash-out refinance.
Step 3 – Choosing the right lender
As you search for a lender for your refinance loan, you may want to ask a number of questions. Ask about closing costs. Some refinance loans come with no fees or fees that can be rolled in with the loan balance. Ask about interest rates and prepayment penalties. Also, be sure that you ask about a timeline for the refinance. Some companies can have a check to you in as little as a week, and if time is running out for you, you want a lender who can process your refinance quickly.
Even if you are not interested in refinancing your Malden home, you can still tap into the equity to meet your financial needs. Look at home equity loans and lines of credit with your lender. They will work in addition to your mortgage, so you will not have to replace that great rate you got initially.
If you are ready to get started with your mortgage, refinance, or home equity loan, take a moment to fill out the form below. A lender will contact you right away to discuss your needs.
