Home Loans And Refi Discounts And Offers
Home Loans and Refinancing Discounts
Your home is your most significant investment. Make a mistake in the financing, and you’ll be paying more than you should for decades to come. However, finding the best home loans can be confusing at best. Why are there so many different options? Which ones are right for you? Employee And Member Discounts has found a way to cut through the confusion.
The Basics about Home Loans
A mortgage is a loan that pays for a home purchase. Your monthly payment consists of principal and interest. Typical loan terms are for 30 days. Initially, you pay far more interest than principal.
Home loans companies offer a variety of products for the borrower. They usually fall into two categories.
- Fixed rate mortgage. This loan product is an attractive option when you like stability. Your payment never changes. You have a fixed interest rate that remains the same for the entirety of the loan.
- Adjustable rate mortgage. Also known as ARM, this product features low home loan quotes. Initially, the payment is cheap. However, eventually the interest rate adjusts following market indices. Therefore, your monthly payment could go up significantly.
Usually, home sellers look for potential buyers who are preapproved for their home loans. It means that you work with a mortgage lender who commits to underwriting your loan. It puts you in the position of a cash buyer, which makes your offer on a home more attractive than someone else’s who didn’t go through the preapproval process.
More About Home Loans And Refi
What Are Government Home Loans?
Home loan qualifications for mortgages through the Federal Housing Authority are favorable for borrowers. Down payment requirements are usually lower than mortgages that banks underwrite. Although some banks offer zero money down home loans, there are typically high credit score requirements. The government loan program offers more relaxed rules about credit scores.
Why Could Home Refinancing Save You Money?
Refi programs help borrowers who want to get out from under an unfavorable ARM. Maybe you noticed your interest rate inching up and your monthly payment eclipsing what fixed rate borrowers would pay. For this borrower, a switch to a fixed-rate mortgage is a better option.
Another reason for checking out home refinacning option is the opportunity to pay off a home faster. If you’re in an excellent financial situation, you might be able to decrease the term of your mortgage to ten or 15 years. These loans frequently have lower interest rates – but higher monthly payments – than traditional 30-year loans.
Are You a Good Candidate for Home Loan Assistance?
If you meet specific home loan qualifications, you may be able to benefit from a variety of loan assistance programs. These usually target first-time homebuyers. They often consist of grants. Sometimes, they target specific demographics.
For example, there are home loans companies that specialize in working with Native Americans or veterans. Cities, counties, and states may also offer first-time homebuyer grants. Because each of these programs might have different definitions of a first-time buyer, it pays to check the fine print.
How Can I Get a New Home Loan?
In the past, you’d ask several banks for home loan quotes. You’d be talking to various bankers. The same’s true for the many refi programs that are out there. Employee And Member Discounts has vetted a broad range of financial products for you. There are zero money down home loans, ARMs, and fixed-rate mortgages. Log on today to compare the best home loans.