Prince George's Mortgage Rates

Mortgages in Prince George's County

Lenders are in the business of making money, and the more money they loan you the more money they make. Some mortgage companies may pre-approve you for an amount that it turns out you can hardly afford. It is important to know exactly what kind of payment you can afford and communicate that to your mortgage lender. The best way to figure out your acceptable monthly payment is to take your gross monthly income and multiply it by .28 (28%). That amount should be the total mortgage payment including principle, interest, taxes, and insurance. Keep in mind that insurance and taxes vary, so be sure to know how much of your payment you have to allot for those escrow extras. You may be able to afford a $700 monthly payment, but only $400 may actually go to principle and interest on your loan. This can make a big difference in determining the value of the house you can afford.

Refinancing in Upper Prince George's County

Homeowners that need extra money to remodel or pay bills sometimes rush into a home equity loan because they think it is their only option. Fortunately there is another option available that works in almost the same way called a cash-out refinance. A refinance typically results in a lower interest rate than a home equity loan and you can get just as much money out of your house. This is especially advantageous if you do not need more than 80% of the value of your house because you still avoid private mortgage insurance. It can work in your favor to lower your mortgage rate in addition to taking additional money out of your house. Your home is your biggest asset and it is important to be responsible when you take money out of it.

Prince George's County Home Equity Loans

If you are interested in doing some home improvements over the next couple of years or have a child entering college that you will need help paying for than a home equity line of credit may be right for you. A home equity line of credit (HELOC) is available credit that is based on the value and equity in your home. You only pay interest on what you borrow and are only required to make minimum monthly payments as long as you have the line open for use. Most banks even issue check books and debit cards to make it easier to use the line. A HELOC is an excellent alternative to a regular home equity loan if you are going to need money over a longer period of time or if you are unsure how much money you will actually need. It is far better than a credit card because the interest is typically tax deductible and much lower than the double digit interest rates of credit cards. Although payments are low (typically interest only) there is usually no penalty to paying it off and keeping it open and available for use. Be sure to read the fine print because the line is revolving credit, it is often a variable. Know exactly how high the rate can go before you reach the ceiling.