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RSSRefinancing in Cobb County
Refinancing is an important decision that can save you money, but all too often it ends up costing you much more money than it should. There are a number of ways to avoid the high costs of refinancing. The easiest way to help you save thousands of dollars is to refinance with the bank you have your mortgage through already. Typically this helps you avoid an appraisal (as they already did one) and some banks even offer no-closing-cost refinances as an incentive to stay with them. For your mortgage, you may have gone through a pre-approval process. A pre-approval is a step that only should apply when you are house hunting and can be a costly step when you are applying for a refinance. Another way to avoid a costly refinance is to make sure that your current mortgage doesn’t have a pre-payment penalty. This can end up costing you six months of interest just to pay off your first mortgage to refinance it. Sometimes this fee can be avoided if you stay with the same bank as well.
Cobb County Home Equity Loans
Home equity loans are loans that take advantage of the equity that you have built up in your home with either your down payment or by making your monthly payments. This equity can be used for anything from home improvements to debt consolidation. But what if you find yourself in need of some home improvements but do not have any equity to spare? There is a government-sponsored home equity loan called a HomeWorks home loan. This loan is for the purpose of improving your home’s value, although 25% can be used towards debt consolidation. The loan is guaranteed by the government and does not require any equity. Although there is a lien placed on your home that will need to be paid back when you sell the home, it does not affect your equity standing.
Your eligibility for this loan is determined much in the same way as traditional home equity loans. Your income and debt-to-income ratio will play a large part in the acceptance or denial of this loan because equity is not an issue. The amount of the loan is based on estimates from contractors for the work that you are planning on having done. Although you can do the work yourself, the loan requires professional estimates for eligibility. The loan can be up to $50,000 and is a great option for increasing your home’s value without over-extending yourself on your home’s equity. If you find yourself needing a new roof or another improvement and have no way to fund it, ask you lender about the HomeWorks loan.
FHA Mortgage Loans in Cobb County
In addition to national programs for down payment aid, the FHA assists in helping consumers find state and local assistance. Each state has its own programs, but in Georgia each county sponsors an American Dream Down payment Initiative (ADDI). This program assists those first-time home buyers with low income (less than 80% of the median household income in the area) in affording homes they may not be able to otherwise. These ADDI funds can be used to pay for a down payment in addition to closing costs. Some states and municipalities even allow these funds to go towards any improvements on the home that may be necessary before move-in. If you have a lower income and are in need of down payment assistance, be sure to ask your lender for information about your local programs.