Are you an existing homeowner in Brunswick, Ohio? If so, you may qualify for a refinance loan or a home equity loan.
Refinance Loans
A refinance loan will enable you to reduce your monthly mortgage payment by obtaining a lower interest rate. This loan replaces your existing mortgage, so you will go through the entire loan process from loan application to closing. This mortgage will have a fixed rate and has a typical duration of 15 or 30 years. Even if you have refinanced in the past, it is possible refinance again. The money you save will be available to pay off credit card bills, unexpected medical costs, education costs, or remodeling or repair of your home.
Home Equity Loans
If you have lived in your home in Brunswick, Ohio for a while, you can borrow money on the equity you have earned in your home. A home equity loan can either be in the form of a lump sum or a line of credit. The duration of a home equity loan is typically 10-15 years. You can use this money for anything you need it for. You will only pay interest on the amount you borrow.
Mortgage Types
What if you have just found your dream home in Brunswick, Ohio? New mortgage options available include fixed rate, adjustable rate, interest-only, and balloon mortgages. A fixed rate loan allows you to have the same mortgage payment each month for the duration of the loan as the interest rate never changes. Durations of fixed rate loans are usually 15 or 30 years. Your mortgage payments with an adjustable rate loan can fluctuate depending on the interest rate at specific intervals. These intervals are usually set at 1, 3, or 5 years. The initial interest rate is low. Interest-only loans are a great way to go if you plan on living in your home for a short period of time. The mortgage payments for the first 10 years include only the loan’s interest. The principal is added after that so your mortgage payments will increase. Another loan that will benefit those homeowners who plan to stay in their home for a short period of time is the balloon loan. These loans have a low interest rate but have to be paid in full in 5 years. You can pay with a lump sum or by selling the house.
The Loan Process
With the help of a knowledgeable loan officer, you can determine what mortgage type will help you with your financial needs. It is important to find someone you are comfortable with, as you will be submitting a lot of personal and financial information during the loan process. This information will include employment history, credit card history, bank statements, tax records, and current housing costs. You will be responsible for filling out a loan application. This, along with the necessary documentation, will help your loan officer determine how much money you will be able to borrow. It could also help determine the interest rate and duration of your loan.
Closing
After you have been approved for a loan, a meeting will be set up for final closing of the loan process. At closing, you will be responsible for payment of the closing costs and the down payment. This exact figure will be available to you a few days before closing so that you can obtain a certified check for payment. Many documents will be presented to you for your signature. Make sure you understand what you are signing. Do not be afraid to ask questions.
At the end of this meeting, you and your family will either be the proud owners of a new home or you will have the funds available to help you with your financial needs.
Contact one of our knowledgeable loan officers today so we can help you with your lending needs.
