Severna Park is located in Anne Arundel County , Maryland , and in the year 2000, had a recorded population just below 30,000 people. The host of the popular TV game show, Wheel of Fortune, Pat Sajak, was born in Severna Park, Maryland. Severna Park is located in central Maryland, just north of the Severn River, and encompasses almost 16 acres of land.
Now is the perfect time to answer those questions you have been asking yourself: How can I refinance my mortgage? How can I afford a new home in Severna Park, Maryland? How can I access the equity from my current mortgage with a home equity loan to help with unexpected expenses?
The Lending Process
You can refinance your mortgage by selecting a lender and providing him or her with the proper documentation he or she will need to get your pre-approval process started. The needed documentation includes:
(or 1099 forms if you are self-employed)
Your lender will run a credit check on your payment history to determine your credit worthiness and the amount of money you will be able to borrow.
After you have been pre-approved, you will need to select a mortgage loan option. There are several from which to choose: two of the more popular options are fixed rate mortgages and adjustable rate mortgages.
With a fixed rate mortgage, you lock in the interest rate at the time of your loan, and that interest rate will stay with you for the life of the loan. Likewise, the monthly mortgage payment assigned to you will also remain the same for the duration of the loan. Most fixed rate mortgage loan terms are either 15 or 30 years.
With an adjustable rate mortgage (ARM), the loan starts off with a lower interest rate for the first few years. After the first few years, the interest rate is subject to change, as is the monthly payment amount. This is a flexible option that requires some degree of flexibility from you as well. This option saves you money in the beginning months of your loan, a time perhaps most beneficial as you adjust to adding monthly mortgage payments to your budget. You always have the option to change your refinance plans and, if a lower interest rate comes along later that you want to lock into, you can refinance to a fixed rate mortgage.
Other option types include:
A 50-year mortgage allows you to consider purchasing a home higher in cost than normal because your mortgage is spread over 50 years, instead of the normal 15 or 30 years.
An interest-only loan lets you pay only the interest payments initially, through the first 10 years. After the first 10 years, your payments combine the principal and interest amounts to resume paying your mortgage in full.
An options ARM is an option to consider if you are not sure just how much money you can afford to pay each month for your mortgage. An Options ARM comes with four choices of payment methods: 1) a minimum payment; 2) an interest-only payment; 3) a 15-year amortized payment; or 4) a 30-year amortized payment.
A balloon loan is offered to achieve the lowest interest rate possible on the market. The term of the loan, though, is for five years only. When choosing this option, you will need to pay off the entire loan in five years, possibly by the sale of your home. This is a good opportunity to look into if you know you are going to sell your home at the end of five years.
Home Equity Loans
If you have an existing mortgage and have been paying into it for some time, you should have equity built up. You can arrange, by applying for a home equity loan, to access that equity as cash, in a lump sum payment. Interest will begin accruing on that loan as soon as you receive the money. Alternatively, perhaps a home equity line of credit would work better for you. You still have access to the same amount of cash, but you have the option of borrowing only the amount you need, and, therefore, only paying interest on the amount you borrow.
If you think looking into a refinance option, a new mortgage option, or a home equity loan is just what you need, simply fill out the form below to get started.
