Guide to Refinance, Mortgage,
& Home Equity Loans in
Columbia, Tennessee (TN)

House hunting in Columbia, Tennessee? One of the most important financial decisions you will make in your lifetime is the purchase of a home. Purchasing a home usually requires the selection of a mortgage.

Mortgage Types

The two most common mortgage types on the market are fixed rate, adjustable rate, balloon, and interest-only.

The advantage of a fixed rate mortgage is that the interest rate will never change. Your mortgage payment every month will never fluctuate for the duration of the loan. Typical loan durations are 15 or 30 years.

Adjustable rate mortgages have lower interest rates in the beginning but adjust at specified intervals. Typical intervals are 1, 3, or 5 years. At these intervals your mortgage payment can go up or down depending on the interest rate at that time.

Balloon mortgages have a low interest rate and work best for those who plan to live in their homes for a short period of time. The mortgage has to be paid in full in 5 years. This can be done by selling the house.

Interest-only mortgages also work well for families who plan to live in their homes for a short period of time. These mortgages allow you to pay only the interest on the loan for the first 10 years. At that point, the principal is added in and your mortgage payment will rise.

There are numerous other mortgage packages on the market today. Let your loan officer guide you through this process, and together, you will find the one that works best for you and your family.

Refinance Loans

If you own a home in Columbia, Tennessee, you may want to check out refinance loans. Refinancing with a lower interest rate than your present mortgage will obviously lower your mortgage payment. Since a refinance loan is just a replacement loan for your original mortgage, you will be able to choose which type of mortgage you want. Since refinancing requires the same process as your original mortgage, be prepared to fill out a loan application and submit the necessary documentation. The money you save can be used for credit card bills, medical expenses, education costs, or even a new car.

Home Equity Loans

If you have live in your home for a while, using the equity you have earned in your home makes sense. You can obtain a home equity loan in the form of a lump sum payment or in a line of credit. The interest rate is usually low, and you only pay interest on the amount you actually borrow. This money can be used for whatever purpose you choose.

Loan Officers

Who can help you find the mortgage, refinance loan, or home equity loan in Columbia, Tennessee that is right for you? A knowledgeable, experienced loan officer will be able to guide you through the loan process from filling out the loan application and gathering the necessary documentation to setting up final closing of the loan. Find a loan officer who you feel comfortable working with, who you trust, and who will be available to answer your questions.

Questions you may have for your loan officer might include:

When will my loan be approved? It takes awhile to obtain all the documentation and process the loan. It is important to be patient and to keep in touch with your loan officer.

What is the current interest rate? The interest rate can change daily. Your loan officer will have the current information available for you.

What is closing? Closing is the final step in the loan process. You will sign numerous documents and pay the closing costs and your down payment at this time.

Contact our office today to discuss your lending needs in Columbia, Tennessee. The loan process will be stress free if you are well prepared and understand the process.

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Last Updated: Thursday, May 24th 2012