If you’re thinking about a refinance loan, mortgage or a home equity loan in Harrisonburg, VA, you either already live there or are planning to relocate. Harrisonburg is part of the beautiful Shenandoah Valley, and is home to the Virginia Quilt Museum. The town also boasts a popular interactive Children’s Museum, as well a lively arts Harrisonburgh calls itself the “ Friendly City.” Many current residents, who have taken advantage of the exceptional home loan opportunities in Harrisonburg, pride themselves on preserving the city’s heritage as members of the Harrisonburg Downtown Renaissance project, which is working to revitalize Harrisonburg’s central district with “museum walks,” a farmer’s market and other community activities.
If you already own a home in Harrisonburg and you’re thinking of refinancing your mortgage or taking out a home equity loan, there are a few things you should keep in mind. First, be aware of the drawbacks of balloon payments. Some lenders will try to reel you in with very low payments because you’re only paying the monthly interest. Eventually, you’ll have a huge payment due on the principal, and you might not be ready.
Another thing to consider when shopping for refinance, mortgage and home equity loans in Harrisonburg are “negative amortization” loans. With these loans, your payments don’t even cover the interest as it accrues, meaning that you end up owing more at the end of each month. After awhile, that can really add up. At the end of the life of your loan, you’ll end up owing more than when you started, even though you’ve been making monthly payments.
When the time comes to sign the huge stack of documents from your Harrisonburg lender, be sure that you know what everything is that you’re signing. Sometimes, unscrupulous lenders will slip additional documents into the pile, signing you up for additional insurance and other “extras” that you didn’t agree to when you shopped for your mortgage loan. Never sign anything extra that you don’t understand, and know what it is that you’re signing from start to finish. You should also avoid any loan that has prepayment penalties – this is a trick that some lenders use to keep you from paying off your loan early. If your Harrisonburg refinancing or home equity loan provider charges steep penalties for cleaning up the debt before the life of the loan is up, find another lender. Pre-payment penalties are not unusual, but they’re also not fair to the borrower.
You should also keep in mind that with any refinance, mortgage or home equity loan that you acquire in Harrisonburg, you have three days after signing the papers to get out of the deal. If you change your mind for any reason, whether you find a loan with a lower interest rate or you realize that you signed something you shouldn’t have, you can cancel the loan in three days. You’ll need to tell your loan professional that you want to cancel, and let him or her know in writing. Then he or she will be obligated to return all fees that you’ve paid during the loan process.
With a little common sense and some patience in reading all the fine print, your refinance, mortgage or home equity loan in Harrisonburg, VA should be a satisfying experience that leaves you in better financial shape than when you began. Take a moment to fill out the form below to get started right away.
