Highlands NC Real Estate, Different Terms for Home Loans
Meadows Mountain Realty, Highlands NC real estate
There are different terms for home loans when it comes to buying or refinancing Highlands NC real estate. The terms dictate interest rate, term length, and pay-off penalties, among other things. Gaining knowledge and information is essential to making a smart financial decision. An experienced Highlands NC REALTOR can recommend reputable local lenders, which in turn can help make an informed decision and investment.
Length of loan
The two most frequent choices for the length of a mortgage are a 15-year loan or a 30-year loan. While the main difference is the number of years, these two loans also come with different interest rates. Typically a 15-year loan has a lower interest rate than a 30-year loan. However, the shorter term has a higher monthly payment because you are condensing the pay-off period.
Interest rate
Let’s face it, most buyers of Highlands NC homes are drawn to low-interest rates. The lower the better because, ultimately, this means lower monthly payments and lower overall cost over the length of the loan. Interest rates fluctuate. The lowest rates are attached to adjustable rate mortgages but these ratchet up over a period of time. Locking in at a low rate is the main goal of anyone seeking a loan to buy or refinance a property. Sitting down with a lender can choose to be prudent, gaining as much information as possible prior to making such a big decision.
Learn more about Highlands NC real estate
Contact our team at Berkshire Hathaway HomeServices Meadows Mountain Realty today to learn more about buying and selling real estate in Highlands NC. We welcome the opportunity to update you on the market while recommending reputable local lenders at the same time. Let our knowledge and experience serve as your guide to Highlands NC real estate.
Click here to read “15 vs. 30-year Mortgage: What to Know” from Realty times.