The village of Waterford is connected with the villages, cities, and lake resorts of Wisconsin . The quality of the schools, churches and shops of Waterford is unequaled by any village of its size anywhere. It is the educational, religious and commercial center for hundreds of farmers and their families. One of the village's most important assets is Fox River , with clear and sparkling water filled with fish of almost every type. Scores of summer cottages have been erected on its beautiful and picturesque banks. Its islands, rapidly growing famous as resorts for city dwellers, are less than a five minute walk from the post office. Camping, boating, fishing, hiking and other outdoor sports can be enjoyed here. Waterford is a delightful place to make into your permanent home, if you aren’t lucky enough to already be living here.
Whether you’re looking for a new mortgage, a refinance loan, or a home equity loan in Waterford, MI, the first step is to understand the different types of loans available. That’s where we can help!
Choosing Your Home Loan
Depending on your income, assets, and credit history, you may qualify for more than one type of loan. Most people qualify for the two standard adjustable and fixed rate mortgages. Adjustable rate mortgages have an interest rate that remains the same only for a certain adjustment period of the loan. The three most common adjustment periods are for one, three, or five years. When the adjustment period is reached, the lender then reviews the index on which the interest rates are based. If the interest rates have gone up during the adjustment period, so does the total loan cost and therefore the payment amount, but if the interest rates have gone down, the payment goes down as well. Before choosing to apply for this type of loan, ask your lender about the index and caps which prevent the loan payment from increasing too dramatically during any one period. You should also ask about the past performance of the index so that you have an idea of how your loan might adjust over the fifteen or thirty year term and affect your payments. Fixed rate mortgages, on the other hand, come with one set interest rate for the entire lifetime of the loan. While that interest rate tends to be higher initially than what is offered with an adjustable rate mortgage, the payment amount never rises.
There are also other mortgages types available. If you plan to pay off your loan sooner than the loan term requires, consider a biweekly mortgage. You will make payments every two weeks, but a thirty year loan could be cut down to just nineteen years with this type of fixed rate product. If you prefer a bit of flexibility with your monthly payments, consider an options ARM. This loan has an adjustable interest rate, but you can choose each month from an interest only payment, a minimum amount payment, or an amortized payment for either 15 or 30 years. This can help you take control of your own payments. Even if you don’t have much money for the down payment, you still may have some loan options. Try looking into an FHA loan with a three percent down payment or you can check out your lender’s options for no down payment loans. The interest rate may be somewhat higher, but it may just get you into your dream home.
Refinancing a Mortgage
You may be looking to refinance your current Waterford, MI mortgage. Lenders usually suggest waiting at least three years after your get your initial loan before looking into refinancing. You may choose at that point to refinance your initial mortgage with a new loan that better fits your current situation. There may be good reasons for you to consider refinancing. You may not like the current rate or term on your home loan. You may want to change to a fixed rate loan from an adjustable rate, or from an adjustable to a fixed rate. You may even want to access the equity you have in your home. If you’re looking at your equity, then you may want to consider a home equity loan rather than refinancing.
A Home Equity Loan
Equity is the difference between the total amount of money that you currently owe on a home and the current value of the home. Lenders may let you borrow as much as one hundred and ten percent of the equity you have in your home. If you like the idea of using this equity, but you don’t want to refinance, there are other options. You can apply for a home equity loan, which gives you one large payment based on the equity in your home or choose a line of credit, which gives you a debit account that you are able to use as you need it.
If you want to learn more about a mortgage, refinance, or home equity loan in Waterford, MI, we can help. Please take a moment to fill out the form below so that a lender can contact you to discuss your individual situation and help you to find the right home loan.
