Guide to Refinance, Mortgage,
& Home Equity Loans in
Muskego, Wisconsin (WI)

The city of Muskego, Wisconsin is a small city that has the honor of being centrally located to some of the most thriving cities in the world, including Milwaukee and Chicago. This prime location allows families with parents who work in the city to live in Muskego and commute to work. This means that they can get all the benefits of having their children grow up in a small, family-based community while still enjoying all of the available opportunities that the nearby larger cities have to offer. Muskego is filled with parks and a great educational system, not to mention all of the business opportunities that await eager entrepreneurs.

Understanding the Lingo

When it comes to understanding mortgages, there is definitely a lot to learn. You will learn terms and phrases when you start dealing with mortgage lenders that you have never heard before. This does not have to be confusing, however, and can be quite simple to learn as long as you have an understanding of some basic definitions. Here are some of the common terms that are used by mortgage lenders and refinancing lenders that you should learn in order to help you make the best decision when it comes to dealing with your mortgage.

• Adjustable rate loans – This is a type of loan that allows you to take advantage of lower interest rates initially. With this loan, your interest rate changes from month to month, so your monthly payments will as well.
• Annual percentage rate – Better known as an APR, an annual percentage rate is what some lenders ask you to pay for the cost of having your loan. Not all lenders require this, though, so ask before you sign any documents.
• Conventional loans – These are mortgage loans that are insured by a government institution. These are mainly to help lower-income people.
• Escrow – This is the process of a neutral third party holding the money, or the documents that need to be signed, before the closing occurs.
• Fixed rate loans – These loans are different than adjustable-rate loans, as the interest rate stays the same, allowing you to know exactly what your monthly payment is going to be.
• Lock-in – This is a written agreement between you and the lender that is written before you sign the mortgage agreement, but after you have discussed and come to an agreement on terms.
• Mortgage – This is the actual documentation that allows you to have a mortgage. A mortgage means that if you default on the loan, your lender has the option to foreclose on your home, so it is vital that you make your monthly payments on time.
• Private mortgage insurance – Better known as a PMI, this is what you have to pay the mortgage lender if you do not have a certain percentage available to put down on the loan at the time the mortgage is signed. Usually, lenders require that you have 20% or more to put down in order to avoid paying PMI.

Refinancing

Refinancing is a process of paying off your current mortgage with another loan. This is accomplished by finding a lender, or by going through your current mortgage lender, and asking to refinance. You will then go through a process that is similar to the mortgage process. When you refinance, the terms will be different. You are looking to refinance with a lower interest rate, which will lower your monthly payments and can possibly save you thousands of dollars by the time you are done paying for the loan.

If you would like information on mortgages, refinancing, or home equity loans, which allow you to take out money against the equity that you have built in your home, please fill out the form below. This will allow us to send you information that will help you to better understand the many options you have available to you.

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Last Updated: Thursday, May 24th 2012