As the chief port of North Carolina , Wilmington is a major retail, trade, and manufacturing center, but tourism is looming larger than ever in its economy.
Located on North Carolina 's southern coast, Wilmington is situated in close proximity to both the ocean and the Cape Fear River . The climate, beaches, nearby university, shopping and dining experiences, and variety of recreational opportunities combine with the beautiful coastal scenery to coax in newcomers and hold on to residents.
Real estate is a thriving venture in Wilmington. Obviously, the closer you get to the water, the higher the price of the property. Nevertheless, homes remains remarkably affordable throughout the region, especially when compared to some more affluent parts of the country. There is also great diversity in what is available, with new homes ranging from $100,000 to beyond $3 million.
With so many options available for homes in Wilmington, it only makes sense that you explore your loan options as well. If you want to find the best mortgage, refinance, or home equity loan available, the first step is to choose the right loan. There are several kinds of loans available.
Traditional Fixed Rate Mortgage
These loans come with a set interest rate for the life of the loan. Your payment will never change for the entire fifteen or thirty year term. These are often the best loans for those who need to carefully follow a monthly budget.
Adjustable Rate Mortgage – These loans have an interest rate that can change. When you apply for this type of loan, you will want to discuss several things with your lender. The adjustment interval is how frequently the interest rate on the loan changes. The index is how the lender determines the interest rate on your loan. The caps are the limits your lender has to make sure that your payment amount doesn’t change too much during one period. These loans are great for individuals who need lower starting payments than a fixed rate loan offers or for those who plan to stay in the home for only a few years.
Interest Only Loan – These loans may be best for you if you think your income will rise during the next few years. This is a kind of adjustable rate loan, but for the first ten years, you will pay only the interest, making your payments much lower than they might otherwise be. After ten years are up, however, expect much higher payments when the principal balance is also figured in.
Options ARM – These loans work great for individuals who aren’t sure how much they will be able to pay each month. You can choose each month from a minimum payment, an interest only payment, a fifteen year amortized payment, and a thirty year amortized payment.
Balloon Loan – These loans are your best bet if you’re looking for the lowest interest rate available. The drawback to this loan, however, is it reaches maturity in only five years, so unless you plan to sell your home, this may not be the best choice for you.
When you’ve picked the right mortgage, refinance, or home equity loan for you, it’s time to choose the right lender. Shop around and compare interest rates as well as loan costs, and be sure to get both in writing from each lender you talk to. This will help you to make your final decision. Don’t forget to ask about any term you are unfamiliar with and remember to read the fine print. This will protect you from predatory lenders.
Be sure to talk to your lender about your individual needs, as the options for todays refinance, mortgage, and home equity loans are many. Be prepared to provide documentation such as paystubs, bank statements, and cancelled rent checks for the last two months. You will need to provide these along with your federal tax returns, W-2s and 1099 forms for the last two years when you are ready to actually apply for a loan. Lenders need to know about your current employment, employment history, and any assets that you may have.
To start searching for your perfect loan today, just take a moment to fill out the form below. A lender will contact you soon to discuss your individual needs.
