Florissant is home to over 54,000 people and is part of St. Louis County. The French first established Florissant, Missouri; however, it was the Spanish who established a civil government, so whether you are relocating, or already have a home in Florissant, Missouri, you will be surrounded by rich culture and a great economy. When you own a home or wish to own a home, you may be interested in the mortgage options available to you. Below are some mortgage options available to you and your family.
A mortgage is a lien on a property for the amount of the loan you will obtain from the bank. There are two common mortgages, adjustable rate and fixed rate. If you already own a home, you may be interested in refinance or home equity loan options.
An adjustable rate mortgage has a variable interest rate for the length of the loan. Typically these loans have a length of 3, 5, 7, or 10 years. Adjustable rate mortgages have an initial low interest rate. The interest rate will change over time, but it will never go lower than the initial interest rate. Also, these types of loans often have a higher monthly payment because the duration is shorter. The benefit, besides the low initial interest rate, is the opportunity to improve your credit score.
A fixed rate mortgage has the same interest rate for the term of the loan. This means that the interest rate will not fluctuate based on the housing market, economy, and other factors. These loans have a life term of 15 to 40 years. If you already have a mortgage, you might be interested in the interest rates. Sometimes the interest rates are lower than the fixed rate you procured.
Refinancing can help you lower your interest rate, lower your monthly payments, consolidate other higher interest rate debts, or lengthen the term of your loan. Refinancing pays off your existing loan with a new loan. Most individuals seek refinancing options when the interest rate is favorable, so they can save money over time and change from an adjustable rate mortgage to a fixed rate mortgage. When you consolidate your other debts, you have one monthly payment instead of several. When you refinance other debts into your mortgage you want to look at your credit cards, student loans, and other expenses to determine if it is beneficial to include these debts. Saving money is the primary reason for refinancing, so it doesn’t make sense to include non-interest bearing debts into a mortgage with an interest; you only end up paying more money over time.
Home equity loans are another option for homeowners who prefer not to refinance. When you obtain a home equity loan, you are gaining a second mortgage. This second mortgage allows you to take the equity from your home as cash and use it toward other debts, remodeling your home, or emergencies. Equity is the appraised value of your home minus the amount owed on your existing mortgage. A home equity loan has a special low interest rate reserved for the loans. This means that your interest rate is lower than your first mortgage and thus the monthly payments are more affordable.
There are benefits for both refinancing and home equity loans. Deciding which option will work for you should be based on your individual needs. Fill out the form below to speak with a mortgage professional about your refinance, mortgage, and home equity loan options. Knowing your options is only part of the decision, and having a professional to answer all of your questions will make your choices much easier.
