Homeowners in Maryland have experienced astronomical appreciations in their home values in the past 10 years. Some homes have literally doubled their values, giving homeowners substantial equity in their homes.
Homeowners are taking advantage of the equity in their homes to start home improvement projects/repairs, consolidate various debts to pay off credit card bills, student loans, medical bills, auto loans, etc.
If you live in Maryland and need a refinance loan, the key to finding the best loan product is to shop around for the lowest interest rates, available on the market. In addition, ensure that you have a basic understanding of the type of loan that you want and also have enough knowledget to understand the terms of your loan.
What Type of Loan Do You Want?
Do you want an adjustable rate mortgage (ARM) or a fixed rate mortgage (15 year, 20 year or 30 year)? Which option makes sense for your situation?
Popular to contrary belief, no one choice is better than the other – it all depends on your situation. If you plan to stay in your home for only two or three years, and want to have the lowest possible mortgage rate, an adjustable mortgage loan, may be right for you. On the other hand, if you plan to stay in your home for a long time, a fixed rate mortgage will be your best bet.
Shopping Around For A Mortgage Loan
This kind of shopping does not require you to spend any money. A reputable loan service, can offer loan quotes at no charge. This allows you to compare interest rates offered by various lenders and banks. You may be surprised at the variations in loan quotes. Take advantage of this service.
Once you get your loan quotes, ensure that you understand all facets of the loan, including any prepayment penalties, any adjustment of the loan term, points, etc.