Guide to Refinance, Mortgage,
& Home Equity Loans in
Concord, New Hampshire (NH)

Concord is the quintessential New England town, with a four-season climate, gorgeous fall color and a strong sense of community. With a population of a little over 40,000 people, Concord feels more like a large town than a small city. Metropolitan areas are nearby; it is only an hour or so to Boston or Portsmouth. The beach and mountains are also nearby with plenty of recreational opportunities for the most ardent outdoor enthusiast.

Concord is a family-friendly town. It has great schools, lots of parks, little crime and affordable housing and living costs. Unemployment in Concord is extremely low. It’s a wonderful place to own a home and raise a family.

You may be reading this because you are thinking of buying a home in Concord. Or you may already own a home, and you’re considering refinancing.

The Buzz About Sub-prime Loans

Sub-prime loans are making news these days because of high rates of default and foreclosure. Sub-prime loans are made to people who have sub-prime credit; they usually have a FICO score under 620. (FICO is a numerical score assigned to your credit-worthiness). A couple of years ago, when the housing market was ridiculously active, mortgage companies made a lot of loans to sub-prime borrowers and a lot of them were adjustable rate mortgages. Those loans are now adjusting up (with increased interest rates) and the payments are going up, often by several hundred dollars a month. People who were financially fragile to begin with can’t always manage those payments, and they wind up defaulting on their loans.

Sub-prime loans are a very small part of the mortgage market, however. Less than 20% of Americans are sub-prime borrowers and only about 13% of those have mortgages. Truth be told, most of them are doing just fine.

If you are a sub-prime borrower, it will be harder for you to get a great deal on a mortgage or home equity loan. You’ll pay a higher interest rate than someone with a more favorable credit rating, which means your payments will be higher. That doesn’t mean you can’t buy or refinance a home, though. Honest, reputable mortgage lenders will work with you and help you buy, refinance or get a home equity loan.

Your Credit Score

How do you know if you’re a sub-prime borrower? You probably have a pretty good idea what shape your credit is in, but you can find out what your credit rating is by checking your credit report with all three credit reporting agencies (Equifax, Experion and TransUnion). For a small fee, you can have your FICO score included. A FICO under 620 is considered sub-prime. If your FICO is 700 or better, you’re considered an excellent credit risk, and you should get the best loan terms.

It’s a good idea to check your credit report before you apply for a home mortgage, refinance or home equity loan anyway. In the first place, errors are common. Over ¾ of all credit reports have some kind error in them, and those errors can increase your interest rate. You’re allowed a free credit report from each agency at least once a year, and you can get them all from the same place, www.annualcreditreport.com, or by calling 1-877-322-8228. Don’t fall for imposter web sites—this is the only one that is authorized under the law.

Another reason to check your credit report and FICO score is to make sure you get the mortgage or home equity interest rate you deserve. It’s estimated that 10% of people who got sub-prime loans actually qualified for lower-interest loans.

When you’re ready to look for your mortgage, refinance or home equity loan, we can help you find a local lender who knows Concord and can get you an excellent loan package. Fill out the form at the bottom of this page and one of our agents will call you to help you find the right lender.