A suburb of Kansas City, the town of Lee’s Summit, Missouri offers delights all its own. Today, over 80,000 live in Lee’s Summit. The town has an exceptionally low crime rate, a healthy atmosphere (the town’s air quality ranks as “good” over 60 percent of the time) and is affordable with the median home price around $290,000. When looking at Lee’s Summit refinance, mortgage and home equity loans, there are a few basic things that it is important to remember.
Traditional mortgages (whether for the purpose of an initial mortgage or a refinance) include fixed rate mortgages, which maintain the same interest rate for the entire life of the loan, and adjustable rate mortgages (ARMs), which reestablish an adjusted interest rate at specific points in the life of the loan depending on market rates. These loans have “caps” that control how high the mortgage can get, and they are a good choice for people who need a lower payment at the beginning of their loan, or who intend to sell the home in a few years.
There are a number of non-traditional mortgages, and your home loan professional can discuss each with you to help you decide if they are right for your particular circumstance. They include interest-only loans, on which you only pay on the interest for several years, leaving the principal untouched. This means the payments are much, much lower than they would be otherwise, but when the life of the loan is up, you will still owe all of the original loan amount, and your payments will increase.
Another non-traditional loan is known as the balloon loan, which is a very short-term loan (usually about five years) with very low interest. If you plan to stay in your home for a long time, this is not the loan for you, but if you plan to sell in a year or two they are an excellent choice. Another option is the option ARM, which allows you to choose each month which of several payments you will make: the minimum payment, an interest-only payment, or an amortized payment. With this sort of loan, you can make a dent in your principal when you are flush, but pay less when times are lean. This is a good choice for borrowers whose income varies from month to month.
Once you have got a good idea of what sort of Lee’s Summit, MO mortgage loan best suits your finance needs, you will want to do your homework and find a good lender to get you on your way. Do a little research and ask around because you want both low costs and good customer service. You will find yourself needing to choose between a direct lender who will be lending you their own money, or a mortgage broker who represents a number of different lenders. A good lender or broker will be happy to discuss interest rates, loan costs penalties and other details with you, and will not shy away from giving you a quote in writing. Refinancing your current home is another option that mortgage brokers can discuss with you, and can explain how this can lower your monthly payments.
After you have found your Lee’s Summit loan professional and know what sort of mortgage, refinancing or home equity loan you are applying for, you will need to get all of your paperwork in order. You will need W2s, pay stubs, bank statements, brokerage statements and more. If you apply for your loan in person, make sure you bring this documentation with you. If you apply for your loan with an internet-based lender, they will ask you to fax copies of these documents to them. They may ask you to mail them copies, and even require that you have them notarized before sending them. Make sure you photocopy both sides of two-sided documents even if the back of the paper does not look important to you, it may have information that the lender requires.
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