Lakewood, Ohio is located along the shore of Lake Erie and is 5 miles west of Cleveland. The “City of Homes” has the feel of a small town with the advantages of city living. Lakewood has been recognized for its excellent school system and outstanding city services.
Housing is available in a wide range of styles from single family homes to luxury condominiums. Every street in Lakewood has sidewalks on both sides of the road and many homes have comfortable front porches. The tree-lined streets are perfect for walking, jogging, bike riding, and walking pets.
If you are ready to purchase your dream home in Lakewood, then you will need to find the right mortgage for you. This mortgage will allow you to pay for your new home without having a large amount of money in the bank. Existing homeowners have the option of either refinancing or obtaining a home equity loan. The information below will help you understand what options you have and how you can benefit from them.
New Mortgages
Both new homeowners and those relocating to Lakewood need to understand what mortgage types are available to them. Common mortgage types include fixed rate, adjustable rate, balloon, and interest only.
Fixed rate mortgages allow you to pay the same amount every month for the duration of the loan. The loan duration is usually 15 or 30 years. Even when interest rates rise, your payments will not be effected.
Adjustable rate mortgages allow you to pay the same amount every month until the duration of the loan reaches a specific interval, usually 1, 3, or 5 years, and then the payment will be adjusted using the current interest rate. Advantages of this type of loan are that the beginning interest rate is usually low.
Balloon mortgages allow you to start out with a lower interest rate, but the mortgage itself has to be paid in full within five years. If you are planning on living in your home short term, then this mortgage will work for you. The mortgage can be paid off by using the money from the sale of the home or, if you decide to stay in the home, by refinancing.
Interest only mortgages allow you to make small payments at the beginning of the loan which goes toward paying the interest on the loan only. After ten years, the principal is added in. If you expect your income to increase during the next few years, then this is an option you might consider.
Existing Homeowners and Refinancing
If you are a homeowner in Lakewood and want to change the terms of your current mortgage, consider refinancing. This is especially helpful if your original mortgage is an adjustable rate mortgage, balloon mortgage, or your current mortgage has a higher interest rate than the present interest rate. If you refinance, you actually replace your original mortgage with a new mortgage.
Home Equity Loans
Another option existing homeowners have is to obtain a home equity loan. With this loan, you actually borrow against the amount of equity you have earned in your home. This loan allows you to either receive a lump sum or a line of credit. You only pay interest on the amount you borrow. You can use this money for unexpected expenses, purchasing a car, paying off credit card bills, or even education costs.
Our loan officers are ready to help you with your lending needs. Just fill out the form below and one of them will contact you to discuss your situation. You will be moving into your new home or paying off your expenses in no time.
