Guide to Refinance, Mortgage,
& Home Equity Loans in
El Paso, Texas (TX)

If you are interested in moving to El Paso, TX, then you probably know that you can use a mortgage to purchase a home, even if you do not have enough money in your savings to buy the property. Mortgages come in all shapes and sizes, much like the homes in El Paso, TX, so before you choose a mortgage lender to work with, it is important to understand your various options:

Interest-Only: With an interest-only mortgage you pay only the interest at first. This option can also be used when you refinance or get home equity loans. There are both benefits and disadvantages of an interest-only refinance situation. Of course, your monthly payments at the start will be much lower if you choose to only pay the interest. They will increase after a certain number of years. Therefore, an interest-only mortgage works well for someone who knows they will be climbing the salary ladder, like teachers. However, the biggest downside to an interest-only mortgage is that you are not putting any equity into your home. Because of this, refinance options are limited and you may not qualify for home equity loans.

Balloon: With this kind of mortgage, you make very small payments for a few years and then the balance of your loan becomes due all at once. Like interest-only mortgage payment schedules, balloon payment schedules do not allow you to put a lot of equity into your home, so home equity loans will usually not be an option. Who are balloon mortgages good for? If you know that you will be coming into a large sum of money, like gaining access to a trust fund, you can use a balloon mortgage to save money on interest.

Jumbo: A jumbo loan is just like a typical mortgage, so you can refinance or consider home equity loans. The main difference is the size of the loan. The major lenders in the United States—Fannie Mae and Freddie Mac—set a limit as to how much can be loaned out for a home. If you need more than that, you will have to get your mortgage with a jumbo mortgage lender. Because these loans are riskier for the lender, you will probably end up paying higher interest rates, so if you are worried about saving money, you might want to wait a few years until you can put a larger down payment on the home and get a regular mortgage instead of a jumbo loan.

Before you begin looking for loans, it is important to find the property in El Paso, TX that you wish to purchase. El Paso, TX is a typical southwestern town with a laid back feeling. There are a number of great neighborhoods in which you can live. You can live in the city, or can choose to live in the suburbs to the east and the west, which include the neighborhoods of Anthony, San Elizario, Horizon City, Fabens, Sparks, Homestead Meadows, Westway, Clint, Canutillo, and Montana Vista.

Wherever in El Paso, TX you decide to live, remember that it is important for you to understand the various types of mortgages before you begin applying. You can learn more about mortgage and refinance options, as well as home equity loans in El Paso, TX by talking to financial professionals, visiting your local library, and reading online articles. You can start the learning process right now by filling out the form below and speaking to one of our representatives.

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