Take some time to consider the above situations or identify the situation that best applies to you. Having a good understanding of your reasons for a refinance will aid you in choosing the best home lender and the best mortgage option for you. Refinancing allows for you to change your type of loan, allowing for different options.
Now that you have identified the reason for your refinance, the next step is to learn about the different types of loans available to you. The following are some of the loans available in New Hampshire:
- Fixed Rate Mortgage - A Fixed Rate Mortgage allows for interest rate to remain fixed. This is a good type of loan to consider if you are planning to stay in your home for an extended length of time.
- Adjustable Rate Mortgage An Adjustable Rate Mortgage (or ARM) allows for the interest rate to adjust to the changes in the market. An Adjustable Rate Mortgage is beneficial if you are staying in your home for only a short period of time.
- Interest Only Loan - An Interest Only Loan allows for a larger loan that might not normally fit into a persons budget. Monthly payments will rise after the interest payment period is over.
- Libor Loan A Libor loan is similar to an ARM loan in that the interest rates fluctuate with the market. However, in contrast to an ARM, the Libor loan is typically more aggressive in the interest rate offered.
Once you have identified a loan that you think best fits your refinance situation, it is time to educate yourself on New Hampshire law. Knowing the different laws will aid you when finding a home lender. Do you know that created a committee in 2004 whose sole purpose is to protect home purchasing consumers? This is very beneficial to you as you search for your home lender. The following are some of the laws in New Hampshire for you to further research:
- Broker Licensing - Foreclosure
Now that you have identified your refinancing reason, type of loan you are most interested in, and the types of loan laws in New Hampshire, you are ready to find your home lender. Remember to research the home lenders available in New Hampshire. Good luck!