Chapel Hill, North Carolina, or “the southern part of heaven”, as its 51,000 resident refers to it, offers many real estate opportunities.
When it comes to refinancing, obtaining a mortgage or even getting a home equity loan, the terms and conditions can become overwhelming, but with a little help, you’ll be on your way to the happy world of home ownership.
First, understand that your home is the collateral for the loan (refinance, mortgage, or home equity loan). If you do not make the monthly payments you could loose your home.
Many home equity loans have adjustable rates, meaning that the monthly payments increase over time as the Fed raises the rates. These home equity loans and lines of credit do not come with the same fees and closing costs of those of a refinance loan. Analyze your reasons for considering a home equity loan or refinance loan and make sure that you’re doing it for the right reasons. Every time you refinance or get a home equity loan, it costs money. Make sure that overall you will be saving money or doing something in the long run that will help you, not hurt you. Refinancing or getting a home equity loan to buy a car or other items is not a smart choice to make. If you’ve decided to get a loan because your income just isn’t enough to cover your bills, then an equity loan is a mistake. You will need to seek another avenue to assist you in that area. Understand that not all refinance loans will save you money. Make sure to add the interest cost payments for the rest of your current mortgage and then compare them to the interest costs of the refinance loan that you are seeking. Calculate the numbers and compare to see if you really will save money by refinancing your home in Chapel Hill NC. Understand that if you borrow all of the equity in your home, and experience declining real estate values, your home may not be worth enough to cover the outstanding balance on the loans. You would then be responsible for any and all the remaining debt. Depending on your current interest rate, how far you are into the original mortgage, and the interest rate of the new refinance loan, your total payments could result in more overall interest payments that if you had simply stayed with the initial mortgage. Shorter terms will come with higher payments.
Choose a repayment schedule that fits your allocated budget. Interest rates are not the only variable to compare with different lenders. The only way to adequately evaluate different lenders is to compare their fees side by side. Most companies have programs that are nearly identical as far as interest rates and loan terms, but fees vary widely from one company to another. If you neglect to provide accurate financial information to a potential lender, you run the risk of receiving a much higher interest rate if they find it on their own. By being up front about your history, the lender places added trust in you as a borrower, however if they find out you “forgot” some things about your past they may question the validity of the rest of your application.
Evaluate your credit before applying for any new loans. Refinance and home equity loans weigh heavily on your recent payment history, especially how you have paid on your current mortgage. However, be aware before you begin the process of refinance, mortgage, and home equity loans, that although it is good business to compare lenders, too much shopping can actually hurt your credit score. Every time a lender, creditor, or any one accesses your credit report to access your score, there is a notation added to your credit report. Too many of these notations over short period can actually lower your score. Just be cautious.
If you’re ready to get started, take a moment to fill out the form below. A qualified lender will contact you right away to discuss your needs.
