If you’re thinking about buying a home, knowing about mortgages and how they work is of the utmost importance. The team at Fairway Independent Mortgage Corporation in Minneapolis, MN, not only provides a variety of affordable loan options, but they can also clarify complex topics related to home transactions. Below, the home loan professionals share what you need to know about mortgages.
A Guide to Mortgages
What Is It?
A mortgage is a loan used to purchase a home. The terms of a mortgage are satisfied once all money owed is remitted by the home buyer. It can also be terminated if a buyer can no longer pay, at which point the home would be repossessed.
How Do Mortgages Work?
Many people lack the money to purchase a home outright. Instead, they forge an agreement with a lender that entails repayment of the cost of the home over time, as well as accompanying interest. That means that mortgage terms typically last for many years, usually ranging from 15 to 40. This allows monthly payments to be more manageable than if the terms were shorter.
Are There Different Types?
There are a few mortgage options to choose from. A home equity loan allows you the option of obtaining a line of credit, which means you may have more money at your disposal than you need (a traditional home loan is approved for the specific amount of the home and associated costs). You can also opt for a purchase money mortgage, which usually entails more affordable interest rates. Or, you can refinance an existing mortgage to secure more favorable rates and lower interest.
Whether you’re interested in refinancing your home or would like to learn more about mortgage rates in the Twin Cities, Fairway Independent Mortgage Corporation has the skills and the knowledge to help. They’re licensed to operate in both Minnesota and Wisconsin. Speak with someone today about your needs by calling (952) 797-6032. Learn more about available loan options, including fixed- and adjustable-rate mortgages, by visiting their website.