Portsmouth , New Hampshire is located in Rockingham County and is credited with being the fourth largest city in the county with a population just below 21,000 inhabitants in the 2000 U.S. Census. The area of Portsmouth, New Hampshire was settled in 1623 and originally named Strawberry Banke because of the large amount of strawberries growing at that time beside the Piscataqua River. When Portsmouth was incorporated in 1653, it was renamed in honor of John Mason, the colony’s founder, who was captain of the port of Portsmouth, England. Portsmouth, New Hampshire is a popular tourist destination in the summertime.
Have you been thinking of purchasing a home? Portsmouth, New Hampshire is the ideal place. If you already have a mortgage in Portsmouth, perhaps you have been thinking that it is time to check into a refinance option for your mortgage. Maybe a home equity loan option is an alternative you want to consider.
The Mortgage Process
The first thing you need to do is find a lender to help you get started on the mortgage pre-approval process. A pre-approval process will give you a head start on the paperwork required for a mortgage loan application. It will also give you an idea of the amount of money you will be qualified for and tell sellers that you are a serious buyer. To start, you will need to gather copies of pertinent paperwork for your lender. This paperwork should include:
Your lender will also need to run a credit check on your past financial history to evaluate how well you have handled your previous debts. This credit check process will result in your credit score. Your credit score is a very important three-digit number to you, as it will be used to help your lender determine your creditworthiness.
Your next decision will be as to what type of mortgage loan will fit your needs best. Several choices exist, with two of the most common and popular being the fixed rate mortgage and the adjustable rate mortgage (ARM) loan.
A fixed rate mortgage allows you to keep the interest rate your loan starts with for the entire life of your loan. This can be really great if you get a fairly low interest rate. Regardless of what the economy does in the future, your interest rate and your monthly mortgage payments will remain the same. The term for a fixed rate mortgage is typically either 15 or 30 years.
An adjustable rate mortgage starts your loan off with a lower interest rate for the first few years. After the first few years, your interest rate can change, varying with economic and market indexes. Your interest rate could rise or fall, depending on the circumstances, perhaps monthly. Your monthly mortgage payments will also raise or fall with the change in your interest rate.
Refinance Loans
A refinance option allows you to refinance your mortgage to a lower interest rate, with lower monthly mortgage payments. A refinance is similar to applying for your first mortgage. You will need to provide your lender with the same paperwork and documentation. A refinance option gives you another choice, however, and that is to take the equity that has built up in your home out in cash.
Home Equity Loans
An alternative is a home equity loan. If you have been paying your mortgage for a few years, you will have equity built up in it. Equity is the difference between the remainder you still owe on your mortgage and your home’s current worth. You can choose to take the equity out as cash, in a lump sum payment option. Interest will begin to accrue as soon as you receive the money. A home equity loan is also called a second mortgage. The interest rate on a home equity loan option is often lower and the repayment term shorter, typically 10 to 15 years.
If you would like to learn more about your refinance, mortgage, or home equity loan options in Portsmouth , New Hampshire , simply complete the form below.
