If you are a homeowner in Chantilly, VA, you may be investigating refinance loans or home equity loans. Since Chantilly is part of the Baltimore-Washington, DC Metropolitan Area and is only 24 miles from Washington, DC itself, you know that it is an exciting place to live.
The right loan for you begins with finding the right loan officer to work with. It’s important to find one you can trust and one you will feel comfortable asking questions when they arise. An experienced and knowledgeable loan officer will be able to assist you through the entire loan process.
Refinance Options
There are two ways to change your monthly payments when you acquire a refinance loan. You can either change the length of term of your loan or change the actual interest rate of the loan. Changing the length of the term will obviously allow you to shorten the amount of time you have to make payments. This will especially be helpful if your financial situation has changed since obtaining your initial loan. Refinancing to a lower interest rate will obviously lower your monthly payments. This will be most beneficial if your original mortgage was an adjustable rate mortgage and you expect interest rates to rise or you have a balloon loan that is close to term.
Home Equity Loans
If you’ve lived in your home for awhile, you can use the equity you’ve earned to get a home equity loan. These loans are available in either a lump sum or in a line of credit. Choosing the lump sum option will give you a check for the amount of the loan. The line of credit option works like a debit account. You can borrow up to the actual value of your home. You will pay interest only on the amount you borrow.
The money you save when refinancing or the money you get with a home equity loan can be used for a variety of expenses such as remodeling your home, education, credit card bills, medical bills, a wedding, a new car or a family vacation.
What Information is Necessary?
To qualify for refinancing or a home equity loan, you will need to provide information to your loan officer that will allow him or her to evaluate your current situation. This information will include pay stubs, tax records, bank statements, credit history, and any other assets you might have. A Verification of Employment form will be filled out by your employer and a Verification of Deposit form will be sent to your banks. Your loan officer will advise you on what other information may be necessary.
New Home Mortgages
If you’ve picked out your dream home in Chantilly, VA, you will be in the market for a new home mortgage. With the help of a loan officer, you can research what mortgage options are available. Many factors will figure into your loan selection. These could include the current interest rate, how much you will be allowed to borrow, and how much you will be able to pay per month. You will also need to provide the same financial and personal information as listed above.
Your loan officer will be able to explain the loans available to you and any restrictions they might have. Common loan options are fixed rate loans and adjustable rate loans. A fixed rate loan will enable you to have the same monthly payment for the duration of the loan. Loan durations are usually 15 or 30 years. The interest rate may not be the lowest available at the time but it will never change. An adjustable rate loan obviously will have an interest rate that adjusts at specific intervals. Your monthly payment will be determined by the interest rate at the end of an interval so it could increase or decrease.
Our experienced and knowledgeable loan officers can assist you with your lending needs. Contact our office today to make an appointment.
