High Point , North Carolina is a growing city, the eighth largest in the state, providing all of the advantages of 21st century city life. The city's mission is to serve as the catalyst for bringing together the community's human, economic and civic resources to create the single most livable, safe and prosperous community in America. High Point is known far and wide as the home furnishings capital of the world, but it is also a lot more. It is a diverse business community with the finest restaurants.
More than that, the people of High Point make it the city it is today. They have pride in the community. High Point is a city that still has small town values. High school football games on Friday night draw big crowds. Thousands gather every July 4th to watch the fireworks over Oak Hollow Lake . And residents line the streets to see one of North Carolina ’s only nighttime Christmas Parades.
With all that High Point has to offer, it is not surprising that you may be looking to choose your mortgage, refinance, or home equity loan in this area. We want to make your home loan decision as easy as it can be, so we have compiled some basics to help you get started.
Which Loan Fits?
When you shop for a home loan, you need to find the loan that fits you. Is it a Traditional Fixed Rate Mortgageloan? These loans have one interest rate for the entire loan. The payment amount will never change, which can help you to follow a budget.
Is it the Adjustable Rate Mortgage loan with an interest rate that changes? This can give you a lower starting payment if you only plan to stay in the home for a few years or expect to be making more money in the future. Before deciding on this type of loan, ask details about the adjustment interval, the index and the caps to ensure that the payment amount will not end up changing too dramatically.
An Interest Only Loan may be the best fit if your income will be rising in the next few years. This adjustable rate loan lets you pay only the interest for ten years, which makes your initial payments much lower. After ten years, however, your payments will start including the principal balance and they will rise substantially.
An Options ARM loan is great if you are not sure how much you may be able to pay every month. Each month you will have the choice of making either an interest only payment, a minimum payment, or an amortized payment for fifteen or thirty years.
A Balloon Loan may be just right if you are simply looking for the lowest rate of interest available. There is a drawback, however, because the loan will be due after only five years. You should have plans to either sell your home in that time or pay it off.
To Refinance or Not to Refinance?
Refinancing can help you lower interest rates on your mortgage or change to a fixed rate. You may even want to change to an adjustable rate if your financial situation has changed recently. There is a refinance fit no matter what your current situation is.
Home Equity Loan or Credit?
If you want to make use of the equity in your home, you can always take out a separate home equity loan. This way you can take advantage of the equity in your home without going through the refinancing process with a cash-out. You could also choose a home equity line of credit, where you only borrow as much from your equity as you need when you need it.
The Best Lender
Along with choosing the right type of mortgage, refinance, or home equity loan, you should choose the right lender. Find out from lenders about any penalties and fees and all terms in any loan you are considering. Do not look only for the right interest rate, but at the total loan costs to find the best fit for your home loan. You should ask for a good faith estimate of all costs involved with your loan. Find out if the lender will guarantee the GFE, and if they will not, ask them which fees might change. This will help you finally find the perfect loan for you.
High Point is a wonderful place to call home. Here you can find the right fit for your finances. We want to find you your new mortgage, refinance or home equity loan. So that we can assist you, please fill out the form below. You will soon have the help of a broker who will contact you to discuss your home loan needs.
