Whether you’re buying your first home, upgrading homes or looking to refinance, you need to know what mortgage options are out there. Here are some basic facts on mortgages.
The most basic option is a standard home mortgage. These come in a variety of terms, from 10-years to 30-years. Also, there are different products available for those who are first time buyers. Often buyers in this category can get into a home with very little being required for a down payment. Your credit score will be the biggest driver in determining the loan APR you receive. Talk to a Top Mortgage Lender like Sun West Mortgage to find out what products are available to you.
There are many reasons people refinance. Sometimes homeowners want to reduce the interest paid over time. By refinancing from a 30-year to a 15-year mortgage, you can save hundreds of thousands of dollars. The drawback to this option is that your monthly payments will increase. Another reason is to reduce your monthly payments. If you’re five years into a 30-year mortgage and have a financial crisis, by refinancing back to 30 years, you can take advantage of some of the equity you’ve built up. Also, you can refinance to take advantage of lower interest rates.
Know what your finance options are when it comes to your mortgage. Use this information to make good choices in the products you choose.