A suburb of Detroit, Clinton, Michigan, is a growing area. Clinton has a great school system, and some of the best neighborhoods in the area. Combine that with a short distance to Detroit and a variety of jobs and industries to choose from, and you have a great place to live. With twenty eight miles of land to work with, Clinton may just be the perfect place for you to call home.
If you are ready to call Clinton home, or you have been calling it home for the past several years, perhaps your thoughts have turned toward the mortgage market and what it has to offer you. Whether you are looking for the perfect first mortgage, you wish to refinance your home loan, or you want to cash out the equity you have built through a home equity loan, there are several things you should ask your lender before you begin the process.
First, find out what the interest rate is on the loan products you are considering. Remember that the interest rate helps to decide exactly how much you will be paying on your loan each month, and the lower rate you can get in Clinton, the lower your payments will be.
Second, find out if your loan’s interest rate is subject to change. If you are looking at a fixed rate loan or a home equity loan, the chances are pretty good that it will not change. If, on the other hand, you are looking at one of the many adjustable rate products on the market, your loan’s rate is subject to change, and you need to find out from your lender how much it might change, how often it might change, and how you will be notified of that change, as it will directly impact your payment amounts.
Next, ask about the closing costs on your loan. All loan products, whether they are mortgages, refinance loans, or home equity loans have costs involved, and you need to understand exactly what you will be paying. Keep in mind that while some lenders can roll these costs in with your loan, most loans simply are not cost free, and understanding the fees you will be paying is essential. Your lender will send you a Good Faith Estimate of these fees just three days after you apply for the loan, so watch for it in the mail.
Do not forget to ask about prepayment penalties for your loan. Some lenders write this into the clause to help boost their bottom lines, but they are of little real help to you. While you can occasionally get a better interest rate if you choose a loan with a prepayment penalty, in most cases, it is just a hassle if you feel like you can pay your loan off early.
If you are shopping around, you want to be sure to ask your potential lender if you can lock in the offered interest rate on your mortgage, refinance, or home equity loan. Interest rates change on a daily basis, and what is good today may not be your lender’s offer tomorrow. Having them lock in the rate for a thirty day period, though, should give you enough time to find the right lender.
One final thing you will want to ask is how long your loan will take to close. Depending on the type of loan you are applying for, it can take anywhere from two days to two weeks to close the loan, and understanding how long the process will take from start to finish may be crucial to your decision.
If you are ready to start the process of getting a mortgage, home equity, or refinance loan, fill out the form below. A lender will contact you right away to discuss your individual financial needs and the right loan for you.
