Home Loan

Whether you are buying your first home, moving into your dream home, or refinancing your current home, there are a few things you need to know about Home Loan Salt Lake City.

Fixed-rate mortgages

Compared to adjustable-rate mortgages (ARMs), fixed-rate mortgages offer several advantages. These include predictable payments and stability. They also have fewer surprises. In addition, they typically offer longer terms, meaning you can enjoy a lower monthly payment.

The most common fixed-rate mortgages are 30-year loans. However, there are several other types of fixed-rate mortgages. These include fixed-rate mortgages with interest-only periods and loans with shorter terms.

Interest-only periods allow you to make lower payments for a set period. After the period, the loan will be recalculated to reflect the remaining mortgage balance. You can then make additional payments to reduce your monthly payments and help you repay the loan more quicker. However, it would be best to verify that the extra payments would pay off the loan’s principal.

Another benefit of fixed-rate mortgages is that the interest rate stays the same for the entire loan. This means you will not have to worry about fluctuations in the market.

Jumbo mortgages

Whether you are looking for a home or investment property, jumbo mortgages for home loans can offer you a way to finance a high-end property. These loans are a great option for buyers looking for a home in a hot housing market but do not qualify for conventional loan limits.

Jumbo mortgages are home loans that exceed the conforming loan limits set by the Federal Housing Finance Agency. These limits are established based on the average price of homes in the local area.

The loan amount is then divided by the appraised value of the property. Borrowers may also be required to pay an additional appraisal to confirm the property’s market value.

The debt-to-income ratio is another important factor that lenders look at. Borrowers need a low debt-to-income ratio to qualify for a mortgage. A debt-to-income ratio of less than 36% is recommended for a jumbo loan.

Jumbo mortgages for home loans are available for both primary and second homes. Jumbo loans are ideal for high-income earners. They are also popular with investors who want to purchase an investment property.

Home equity lines of credit

Using a home equity line of credit is a good way to get cash when you need it. It’s especially helpful if you’re paying off debt or making expensive home improvements. The amount you borrow will depend on your credit score, the value of your home, and other factors.

HELOCs are revolving lines of credit, meaning you can draw the funds you need over time. However, the amount you can borrow is limited. Most lenders require a combined loan-to-value ratio of 85 percent. The lender will also consider your credit history and income.

Bank of America offers the best rate discounts for Preferred Rewards members, but their rates can vary based on your credit. They also offer no closing costs for lines up to $1 million. For a higher amount, they may offer a fee.

Figure offers an attractive online application process, promises approval in five minutes and funding in five business days. They also offer a low, fixed interest rate.

Cash-out refinances

A cash-out refinance is a way to access the money you have saved for home repairs or other major expenses. You can also use it to consolidate high-interest debts, such as credit cards.

Unlike other home loans, cash-out refinances can help you take advantage of your home’s equity without selling it. This allows you to use your home to finance major expenses, like paying for college tuition.

The first step to take when you are considering taking out a cash-out refinance loan is to figure out how much money you need. This may involve sitting down with your bank statements and credit card statements. It can also mean getting estimates from contractors.

The amount you can borrow will depend on your home’s value. You may be able to take out a loan for up to 80 percent of your home’s value. Some lenders will let you take out up to 90 percent. You will also need to have a good credit score to qualify.