The city in Ohio with the funny sounding name is actually one of the fastest growing suburbs in the entire country. Xenia, which is Greek for “hospitality,” is a wonderful place to call home and an incredible spot that offers easy access to three great cities, all a short drive away. Xenia is located right outside Dayton and is a short drive to both Cincinnati and Columbus. The growing suburb has a population just under 25,000, but it is growing quickly. It is safe to say that Xenia is a unique and fun place to live and that, once you visit, you’ll be very likely to move there for good. If you already call Xenia home, you might be interested in taking advantage of the great rates right now on a home refinance or a home equity loan. If you are thinking about relocating to Xenia, you might want to consider a first time mortgage so you can own instead of rent. Here are a few helpful tips for you the next time you are ready to get that big bank loan.
Refinance
While it can be almost impossible to make a comprehensive list of every single thing that your lender will take into consideration, one part of your refinance application that every lender will look at is the amount of cash on hand you have. The bank cares about your savings because it sees your savings and investments as security blankets, just in case tragedy should strike. Every lender is a business, and every lender is going to make a profit from its loan to you. It must judge how big of a risk you are to it. Part of that risk assessment is considering your savings. Your lender assumes that you would use some or all of your savings to continue to make payments on your mortgage should you lose your job. The more savings and investments you have, or the bigger your security blanket is, the better off you’ll be and the more confident your lender will be in allowing you to borrow money. The more savings you have, the better your terms will be and the lower your interest rate will be, too.
First Mortgage
The same is essentially true for your first mortgage, but since most people don’t have enough savings to even make the twenty percent down payment that banks recommend, they don’t take savings into consideration quite as seriously. But if you do have a little extra in savings, it can go a long way to helping you get better terms on your first mortgage. Not to mention you’ll also have some extra cash to buy points during closing, thus lowering your interest rate a bit and saving you even more over the long run. Savings are one of the most important parts of getting a mortgage.
Home Equity Loan
Savings are important here too, but not for the reasons you are thinking. Simply put, the more you have saved, the less you’ll need to borrow from your home’s equity to do the renovations you want to do or for whatever reason you have to borrow money in the first place. A home equity loan is a low-interest and responsible way to get extra money when you need it, but you shouldn’t ever borrow more than you really need. With extra savings, you won’t need to.
If you would like more information on getting a home equity loan, a refinance, or a first time mortgage, please fill out the form below and one of our experts will contact you.
