If you are interested in buying a house in Trotwood, Ohio, then you are probably also interested in information regarding mortgage types. The best way to obtain this information is to contact an experienced loan officer.
The Mortgage Process
After finding the loan officer you wish to work with, together you will be able to select the mortgage that is right for your financial situation. Common mortgage types include fixed rate, adjustable rate, interest-only, and balloon.
● Fixed rate loans may have higher interest rates than some other mortgages, but the interest rates never change. Your mortgage payment never changes. This is a great choice if you expect to have a consistent income and you plan to live in your home for some time. Fixed rate mortgages tend to have a lower down payment. Expect typical loan durations of 15 or 30 years.
● Adjustable rate loans have interest rates that can adjust at regular intervals. Typically these intervals are 1, 3, or 5 years. Your mortgage payment can rise or fall depending on the interest rate when the loan reaches one of these intervals. Since these loans usually start out with a low interest rate, they are a great way to purchase a home. If you are expecting your income to increase in the future, you will be prepared if there is a rise in your mortgage payment.
● Interest-only loans allow your mortgage payments to go towards the interest on the loan for a set period of time, and then the principal is added in. Obviously your mortgage payment will increase at this time. If you are anticipating a steady rise in your income over the next few years, then this might be an option for you.
● Balloon loans have the same mortgage payment for the duration of the loan, but the loan itself has to be paid in full when it reaches its term. Typical terms are 3, 5, or 7 years. One great advantage to this type of loan is that the interest rate is usually lower than other loans. Homeowners who are disciplined enough to invest the money they are saving with the lower mortgage payment to help make the final lump sum payment will benefit from this type of loan.
To qualify for a loan you will need to meet with your loan officer to fill out a loan application and provide the necessary documentation. This will include employment history, tax records, pay stubs, credit history, and current housing expenses. This information, along with the loan application, will help the loan officer determine how much you will be able to borrow and even what interest rate you might get.
Refinance and Home Equity Loans
What options do existing homeowners in Trotwood, Ohio have? If you are in need of extra cash, you might want to consider either a refinance loan or a home equity loan. Both of these options can help you pay off your credit card bills, your unexpected medical bills, your education expenses, allow you to repair or remodel of your home, or enable you to purchase a new car.
A refinance loan is a new loan that replaces your existing loan. You will be able to choose a new mortgage type with a lower interest rate that will lower your mortgage payment. Refinancing can also help you change from a mortgage that has undesirable terms, such as an adjustable rate mortgage nearing an adjustment or a balloon mortgage nearing its term. Since you need to qualify for a new loan, the entire loan process will need to be completed again. Even if you have refinanced in the past, this is an excellent way to help your current financial situation.
Home equity loans help you use the equity you have built up in your home to borrow money. Equity is the difference between the value of your home and how much you still owe on it. The longer you have lived in your home, the more equity you have earned. Home equity loans are available either as a line of credit or a lump sum. Interest is only paid on the amount you borrow. This money is yours to do with as you wish. Home equity loans typically have terms of 10 or 15 years.
To discuss your refinance, mortgage or home equity loan options in Trotwood, Ohio, fill out the form below. Our knowledgeable loan officers are ready to assist you with your lending needs.
