NC Banks & Mortgage Lenders:

There are lots of mortgage and exotic loan types available and with today's technology getting a letter of approval from a mortgage lender or by a local bank for a home is much quicker than ever before.  Yates Realty is on the frontline of the home selling & buying process and knows first hand which North Carolina & South Carolina lenders and which loan officers offer great rates, excellent service, and deliver impressive turnaround times for approvals and loans.  We can introduce to you some of the best lenders throughout Charlotte & Lake Norman as well for many cities & towns throughout the Carolinas.

Loan Types:

By now you likely know that there are many loan types to choose from and that each loan has its own set of qualifications, calculations, and payoff schedules. Let's take a closer look below at some of the type of home loans available and other types of loans that you might find helpful when buying a house, or when needing to borrow some extra money, or when refinancing an existing home.

Conventional Loans:

If you are buying a house, a 30 year fixed interest rate loan is the most common mortgage among home buyers. A 30 conventional loan is typically a fixed rate loan over the thirty years of the loan. This loan type requires between a 10% to 20 % deposit which is based on the purchase price of the property you are buying.  Your average monthly payment for a conventional loan can be determined by using the above home loan mortgage calculator. You can also change the default US currency to most any currency.  

VA Loan (Loans for Veterans):

If you are a veteran that has been honorably discharged from any branch of armed services, such as Army, Navy, Airforce, or Marines then you qualify for a veterans loan. In order to begin your loan application process you will need a copy of your DD214. If you do not have a copy of your DD214, you can visit your local veterans support office and apply for a copy or you can apply online.  Keep in mind that a veterans loan has  better qualifying terms and lower interest rates than that of a typical conventional loan. Some lenders and banks are not set up to process a veterans loan, so be sure to ask your lender up front if they offer veteran loans. 

FHA Loans:

Federal Housing Administration Loans, also referred as FHA loans, were created in the 1930s to help stimulate the housing market by helping US citizens qualify for a purchase of a home.  FHA loans are still a great option today for many home buyers that might otherwise need additional help when qualifying for a loan.  The underlying purpose of a FHA loan is to reduce the overall exposure and distribute some of the risk to the lender in the event of a default, while helping a borrower purchasing a home that may not otherwise be qualify. 

Home Equity Loan:

If you have lived in your house for several years or if home prices are going up in your community, than most likely you have built equity in your home. What is equity? It's the difference between what you owe on your house and what your home is worth or would sell for at current market value. Suppose this is the case and you have equity, if you need some extra money for your child's college, an emergency, or if you need to improve your house, buy a new car, or simply want to purchase something that you really need, then you might want to take out a home equity loan.  An equity loan is a loan that is secured with the equity of your house. In other words, if you have a house that is worth $500,000 dollars and your payoff is $200,000 dollars then you have $300,000 dollars worth of equity. Now a bank is not going to provide you an equity loan or line of credit for $300,000, but if you have great credit you can expect an equity loan for to be for at least 70% to 80% of your home equity.  

Jumbo Loans (Can be tricky):

Jumbo loans are for larger loan amounts. This type of loan is used for higher cost real estate and is often used to bundle more than one property into one loan. This loan has one payment and one interest rate. A jumbo loan can be tricky when you bundle more than one property into one loan, mainly because each property has it's own property value. When bundling real estate into one loan, always determine what the current value is for each property and have your lender agree to a release value  for each property in the event you decide to sell at a later date. Also, be sure to get the amount of each release in writing and what the new interest rates will be (if they were to increase) and include these agreements into your loan package. 

Home Refinance Loan:

From time to time interest rates go up or they go down. When they go down more than 1 to 2 points, then you might want to calculate your savings over the period of the loan. If you savings are significant enough, then you might want to consider refinancing your home. When refinancing your house always consider the closing cost, origination, and loan fees. If your loan origination fee is too high, then you might see that your overall savings if you refi are not as exciting. You can always negotiate your loan origination fee with your lender. A loan origination fee can run as high as 1/2% to 1% of the loan amount.

Reverse Mortgage Loan:

Reverse mortgage loans are typically used by those who have paid off their home, or who have otherwise acquired a substantial amount of equity in their home and wish to use the equity for a retirement program. The home is entered into a purchase-sell arrangement and the equity of your home is then transferred to help pay for the monthly cost of living in a retirement community. These loans are not very common, but they do serve a meaningful purpose, especially for those who want to cash out their equity in their golden years. There are both pros & cons for this type of loan. If you are considering a reverse mortgage, be sure to have an attorney explain to you all the advantages & disadvantages of your contract and seek your accountants tax advice. 

Calculate The Bottom Line:

Regardless of your loan type, always choose a mortgage calculator that breaks down your monthly payments that are based on your total borrowed amount, the interest rates, and the length of terms of your loan.  Also, be sure to factor into your payment the annual property taxes, homeowners insurance and the monthly homeowners association  fees (if applicable) into your overall monthly payment. 

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