When refinancing your home, you will want to consider what type of loan is right
for you. There are two kinds or loans, each with many varying factors. At TLC
Lending, you will work with a loan consultant who will help you determine
the right loan for you. The two kinds of loan you will be deciding between are fixed
rate mortgage and adjustable rate mortgage.
Fixed Rate Mortgages
A long-term real estate loan is paid over a set number of years. The rate, or percentage
of interest paid, remains consistent over the life of the loan.
A long-term, fully amortized loan works out well for many borrowers. Amortization
is the process of principal and interest being paid each month until the entire
loan is paid off. You, as the borrower, will have the same payment each month because
your loan has been spread out over the life-time of the loan, which is a pre-determined
number of years.
Homeowners generally refinance for one of two reasons, either because they are able
to secure a lower interest rate, or because they would like to take money out of
the property-perhaps for remodeling or debt consolidation.
Adjustable-Rate Mortgage
With an adjustable rate loan, there is more room for flexibility. Adjustable rate
loans usually start out with a lower interest rate (lower than a fixed rate loan),
which saves you money at the beginning of your loan. However, because your adjustable
rate mortgage loan is tied to the market index, it can fluctuate considerably. If
the index goes up, your payments will too. While it is impossible to accurate predict
what the index will do, adjustable rate mortgages comes with a "cap," meaning your
interest rate can not go above or below pre-determined amounts. Probably the most
important thing to consider is that you are getting a better rate than you currently
have, since that is, after all, the reason you would want to refinance. At TLC
Lending, we will work diligently to help you secure the best refinancing
loan possible.
Why not take advantage of TLC Lending's FREE QUOTE to find out
more about refinancing your home. It doesn't cost anything and the results are quick!
Take me to the free quote now!
Loan Costs
If you know what you want and you're prepared,
