If you are going to call Southern Oregon home, you are going to need a mortgage, or if you already live there, you might benefit from a refinance or a home equity loan. Here is some helpful information when it comes to getting the perfect loan deal for you.
Mortgage
The single biggest part of getting a mortgage is deciding on the term. The term of a mortgage, refinance, or home equity loan is the time you have to pay it back. The term (along with the interest rate) will decide exactly how much you pay per month in mortgage payments. The most popular terms for mortgages have traditionally been fifteen and thirty years. However, today you can get terms longer or shorter depending on your personal financial situation and how flexible your lender is. If you are only given the choice between fifteen and thirty years, there are a few things you need to take into account. How quickly can you pay off your mortgage? If you go with a fifteen year term, your monthly payments will be much higher than if you chose a thirty year term, but you will pay much less over the life of your mortgage. On the other hand if you choose a thirty year term, your payments will be lower and more manageable, but you will most likely end up paying more in interest over the life of your mortgage than you paid in initial principle.
Refinance
You will be given the same choice when it comes to refinancing. How long do you want your term to be and what can you afford to pay back? Many people who need the initial thirty year mortgage only need a fifteen year refinance because they have the reserves and the yearly income to handle higher monthly payments. While this is not always true, most people can afford to pay a little more on their refinances than they were able to with their regular mortgages.
Home Equity Loan
With a home equity loan, you are getting a lump sum from the bank to help pay for something like college or maybe improvements on your home. Some lenders are not very flexible when it comes to negotiating the terms on a home equity loan, but if they are remember the longer the term, the lower the monthly payments.
If you would like more information on getting a home equity loan, a refinance, or a mortgage, please fill out the form below and one of our client care experts will get back to you.
