Refinancing in North Carolina
Reasons for refinancing your home may vary. Considering a home refinance involves identifying why you are refinancing and what type of loan will most benefit you. There are different types of loans to investigate when choosing to refinance your home. While this may seem intimidating, it is beneficial for when you sit down with your mortgage broker. Education is the key to a smooth refinance. The following are several types of loans that are available to you:
- Fixed Rate Mortgage
- Adjustable Rate Mortgage
- LIBOR Loan
- Interest Only Mortgage
Fixed Rate Mortgage
How do you know if a Fixed Rate Mortgage is the loan for you? A Fixed Rate Mortgage is a good loan to consider if you are adjusting your loan to fit the length of time you are staying in your home. This is good if you have decided to stay in your home for an extended period of time. This loan that allows for interest rates to remain fixed and can lower monthly payments. What if you are choosing move from your home after a short period of time? Perhaps you plan to make some changes and then sell your home. An Adjustable Rate Mortgage is a good loan to consider for this situation. This loan allows for the interest rate to adjust to the changes in the market. A LIBOR Loan is another good option for those staying in their homes for a shorter period of time. It is similar to an Adjustable Rate Mortgage loan in that the interest rates fluctuate with the market. However, in contrast to an Adjustable Rate Mortgage, the LIBOR loan is typically more aggressive in the interest rate offered.
Interest Only Mortgage
You might want to refinance for initial lower payments. An Interest Only Mortgage is a good loan for this type of situation. This type of loan will allow you to pay the "interest only" up front. After this is paid, the regular loan payment will go into effect. This is a good loan to consider if you can afford higher payments once the interest period is over.
What are your options in North Carolina?
Now that you are educating yourself in your loan options, you will need to educate yourself in the laws of North Carolina. For example, did you know that North Carolina has no mortgage tax? There are also laws on foreclosure and broker licensing. More information
can be found on refinancing
. Now it is time to start your home refinance. Good luck!