Financing Highlands NC Real Estate, Which Type of Loan?
Financing Highlands NC real estate begs the question, which type of loan is best for you? The two main types of loans people consider are fixed-rate and adjustable-rate mortgages. Knowing the difference between the two and understanding your needs will help determine which one will serve you the best. Additionally, an experienced Highlands NC REALTOR can be helpful with determining your goals and needs while recommending reputable local lenders at the same time.
A fixed-rate mortgage is a loan with a fixed interest rate. If you lock in a loan at 4% then 4% will remain the interest for the loan over its entire lifespan. This limit cannot be affected by inflation. Additionally, a fixed-rate mortgage will come with a term and this is typically a 15 year or a 30-year loan. The positive side of a fixed-rate loan is that it will never ratchet up. However, this also means that the rate will not go down when rates lower.
An adjustable-rate loan features a loan that adjusts with rising and lowering interest rates. The adjustable-rate mortgage is great when rates are lower but can be alarming when rates rise. However, some adjustable-rate loans come with a cap so that they can never go above a set interest rate. When shopping for a loan it is important to find out if the cap is in place and, if so, what that rate may be.
Learn more about financing Highlands NC real estate
Selecting what type of mortgage suits you best depends on the type of Highlands NC property you are searching for. This includes whether the purchase will be a flip or one to be kept for generations. Contact our team at Berkshire Hathaway HomeServices Meadows Mountain Realty today to evaluate your plans. We welcome the opportunity to connect you with the right lender as well. Let our knowledge and experience serve as your guide to learning more about financing Highlands NC real estate.
Click here to read “Understanding Fixed-Rate vs Adjustable-Rate Mortgages: Which is Right for You?” from Realty Times.