Ohio Mortgage Refinances
Considering a home refinance can be overwhelming and intimidating. However, good preparation and education will help you as you decide which type of loan is right for you. Once you have made the decision to refinance, the first question to ask is do you know the different types of loans available to you? Different types of loans are available, including the following:
There are different loan options when refinancing your home - such as these available in Ohio:
- Fixed Rate Mortgage
- Adjustable Rate Mortgage or LIBOR Loan
- Interest Only Mortgage
What is a Fixed Rate Mortgage and why to consider this type of loan:
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. This loan is desirable if you plan to stay in your home for an extended period of time. This is a loan that allows for interest rates to remain fixed and can lower monthly payments. These are two types of loans that you might consider if you plan to stay in your home for a short period of time. The Adjustable Rate Mortgage loan allows for the interest rate to adjust to the changes in the market. A LIBOR Loan 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.
What is an Interest Only Loan and why to consider this type of loan:
An Interest Only Mortgage is a loan to consider if you would like lower initial payments and can afford higher payments later. This type of loan will allow you to pay the "interest only" first and then the regular loan payment.
More Ohio Information:
The next step in educating yourself is to learn about any laws that pertain to loans in Ohio. For more information, consult our Mortgage Lending Guide