Related Posts

Share This

Know Your Way around the Mortgage Market

It may be that you’ve had your mortgage for several years, and you’re now in a position where you would like to look into refinancing in Des Moines. Because the market is constantly changing, it can be very baffling when you want to do something like this.

There are a few pitfalls you should look out for before you start your search because if you’re not careful, you could end up paying a lot more than you should. You should, first of all, know there are many different types of mortgages and they come from a variety of sources.

Your first port of call may be a bank, local mortgage company, or a mortgage broker. Whilst banks and brokers are the first thing many of us will think of approaching, these are not the best institutions to turn to. Banks, for example, are exempt from disclosure laws in the US that are there to protect the consumers from predatory lending practices. If you do refinance with a bank, you will probably pay way more than you should, and this could go unnoticed.

Brokers or local mortgage companies on the other hand, can offer a better deal, but you have to remember they are in business to make a profit, and the rates they offer you will often be inflated to include a considerable margin for themselves.

At this point, you may be thinking there is nowhere to turn; however, it’s not impossible to find the right deal when you’re looking into refinancing in Des Moines. There are many companies in the market that have the freedom to go where they want when looking for a loan that will suit your budget and will ensure you only pay what you should be.

When you first approach a company like this, they will give you various options and discuss with you which would be best. The three main choices are adjustable interest rates, fixed, or you can have something called a hybrid loan which will be a mixture of both.

Adjustable rate loans are usually very beneficial in the beginning because you are likely to pay less than the “going rate”. However, once the period for this has expired, you could see a significant rise in the amount you pay each month. A fixed rate loan will do just that, keep your rate fixed, but you may not benefit from a down-turn in the interest rate. Hybrid loans are slightly more complicated and it’s advisable to take some expert advice if you’re considering this option.

Yet another form of refinancing is something called a cash-out mortgage. This only tends to be beneficial to people who are reaching the end of their mortgage term or have equity they can draw on. Considering all of the information above, it’s easy to understand why you should consult the services of a company that has all of these options open to you.

Be the first to like.

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)
Be Sociable, Share!