Guide to Refinance, Mortgage,
& Home Equity Loans in
Orem, Utah (UT)

Orem City, Utah is in the north-central part of the state and just 45 miles south of Salt Lake City, home of the 2002 Winter Olympics. It’s also adjacent to Provo, Linden and Vineyard. But best of all, Orem, Utah is known as “ Family City U.S.A.” Who wouldn’t want to raise a family in a city with “family” in the name? Now you need a house. Let’s go house-hunting.

Now that you’re sold on Orem, you need to get the financing for a new home. What step do you take first? Do you go and find your dream home, put in a bid, and discover you’re not approved? Your best course of action is to first get pre-approved. Why waste time looking at your potential homestead only to find out later that you can’t get financing?

The First Step

The first step in your quest to purchase a new home is to get pre-approved on your loan. Pre-approval is usually the way to go for two reasons:

Pre-approval lets you know exactly what you can afford. Why waste time with houses out of your price range?
Pre-approval allows everyone involved to understand that you truly want to buy the home. After all, you’ve taken an extra step to be sure that you can afford it. Studies show that sellers are twice as likely to pick a buyer who has financing in place over one who does not because the sale is practically a sure thing.

The Second Step

Once you’ve talked with your lender about what you can afford, it’s time to choose which kind of loan you want. Of the literally hundreds of loan options available, most fall into two categories: fixed rate mortgage and adjustable rate mortgage.

Fixed rate mortgages – Fixed rate mortgages are very popular because, although the initial interest rate is sometimes higher than most homebuyers would like, the rate is fixed throughout the life of the loan. This type of loan is popular with consumers who want to know exactly what their monthly payment is going to be with no surprises. There are only a few types of fixed rate mortgages. There’s the fifteen year fixed rate product, the thirty year fixed rate product, and the balloon loan. Talk with your lender about which might be best for you.
The second type of loan, the adjustable rate mortgage, is also popular. With this type of loan, the payment in the first few years is relatively low because the interest rates on this kind of loan are much lower. But after that, the rate is subject to several factors: your lender’s index, the market fluctuations, and the caps set by your lender. Within this category of loans, there are lots of choices. From terms like fifty year loans to options ARMs where you literally get to choose your payment amount, adjustable rates give you more choices.

The Third Step

Now it’s time to go house-hunting. Talk with your lender about a real estate agent who might be right for you, then start scanning the ads to find the perfect home. Once you have, contact your loan agent again to finalize the process.

OTHER TYPES OF LOANS

Mortgage refinance loan

What if you already live in Orem and you are just looking for a better interest rate on your existing mortgage? Maybe when you bought your home, your financial situation was much different than it is now. Whatever your need, a refinance can help. If you need different loan terms, you need a lower rate, or you just need options with your payments each month, it’s time to refinance. A refinance will replace your initial mortgage, and at the end of the process, you’ll have a completely new loan on your hands. You can even decide whether or not to cash out the equity you’ve built up in your home.

Home Equity Loan

A home equity loan is simply a cash loan using the equity you’ve built up in your house as collateral. You can go on vacation, buy a new car, or start a home-based business. The options are limitless. Just know that with this type of loan, you will pay interest from the time you take the cash. If you can get by without taking out all of the equity in your house in one lump sum, you should consider it.

Whether you’re looking for an Orem mortgage, refinancing, or a home equity loan, we can help. Take a moment to fill out the form below, and a qualified lender will contact you right away.

Other Utah (UT) Guides to Refinance, Mortgage, and Home Equity Loans in Your City or Town:

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