If you have been on the search for a house, there has been one word on your mind: mortgages. A mortgage is an agreement between a home buyer and a lender that enables the lender the right to take possession of the property should you fail to repay the money you have borrowed, plus interest.
When you visit mortgage or hard money lenders in Miami or Broward County hard money lending, you will need to evaluate the size of the loan, interest rates, the closing costs (including lender’s fees) involved in the loan, annual percentage rate (APR), whether it will be fixed or adjustable, and how long you will have to pay back the loan. A conventional mortgage in Florida can be either an FHA loan, a VA loan, a jumbo loan, or includes refinancing.
AN FHA loan is easily accessible and can be secured with a 3.5% minimum and a 500+ credit score, making it a popular choice, especially among first-time home buyers. The United States Department of Veterans Affairs offers VA loans that assist veterans in buying a home and the financing that comes with it. A jumbo loan is a good option for those who will be purchasing a luxury home or in an area classified as “expensive.”
Refinancing enables a borrower to refinance their loan at a lower rate or to use some equity from their home to consolidate debt or finance home improvements. You essentially replace your current home loan with a new one. The process is similar to the process of obtaining a mortgage in the first place. Orlando hard money lending can help you with this process.
Overall, evaluate which loan is right for you and your home. Each comes with its own set of benefits and set of restrictions. Have a game plan, especially if you are a first-time homebuyer, and talk to a trusted loan advisor to ensure a smooth lending process.