When it comes to purchasing a home, you would need loads of money. Do you have adequate amount to pay for down payment of your chosen home? Do you think refinancing your home would help you come out of the money problem? It would be in your best interest to learn about the different kinds of mortgage options available with Sun West Mortgage for your home buying needs. The company should be able to cater to your specific needs and requirements in the right manner. They should offer you with the best home buying experience online.
Two types of mortgage options
People would avail mortgage for two reasons:
- Purchasing a new home
- Refinancing an existing home
The two major mortgage options would be home acquisition and home refinancing.
- Home acquisition
The normal route for acquiring your dream house would be through a mortgage. However, you would need to pay down payment or equity. You would be required to put up down payment at minimum amount equivalent to 5% of the selling price. The remaining balance would be your mortgage loan.
The down payment made more than 20% would be deemed as conventional loan having low amortization. For down payment lower than 20%, it would be called high-ratio mortgage.
- Home refinancing
Several reasons have been associated with home refinancing being highly attractive option for homeowners. The present house could be used as collateral in order to secure mortgage loan. However, the amount would be based on the percentage of the appraisal value of your house. It could also be decided at the time when Sun West Mortgage lends you requisite money.
The purpose of making use of the borrowed money would be inclusive of home renovation, repairs or facelifts, debt consolidation, new mortgage for lowering interest rates and making investment or working capital for businesses.