Wake Mortgage Rates

Wake County Mortgage Rates

When shopping mortgage rates, you hear a lot about paying points on your mortgage to get your rate lower. Each point is 1% of your total loan value, so on a $100,000 loan each point would cost you $1,000. To determine whether or not it will be worth it, you need to crunch some numbers. If you only plan on staying in the house for a short period of time (less than 5 years) the money you spent on the points, typically does not add up to enough savings to make it worthwhile for you. Comparing amortization tables of a loan with and without points can make it easy to determine how much money you will be saving by paying down the points. If the money saved is less than the cost of the points you are paying down, then paying down points is an unnecessary upfront cost when buying your home.

Home Equity Loans in Wake County

If you are thinking about a home equity loan to get money out of your house for repairs or debt, there may be a better way. Home equity loans typically have a higher interest rate than a mortgage. This is because if your house forecloses, the first lien holder (your mortgage company) will get paid before the bank that you have your second mortgage (home equity loan) through. Given the risk of giving a second loan on the same home, banks usually compensate with a higher interest rate that gets even higher the closer you get to your home’s full value. To save you interest costs it may be in your best interest to do a home refinance instead. When you refinance your home you can take money back out of your house, get a lower interest rate, or change the type of loan you have. Instead of having two mortgages, you will now just have a new first mortgage and money in your pocket that was just sitting in your home.

Wake County Loan Modifications

Although daunting, a loan modification is a relatively simple process. It begins by gathering all the information your lender may ask you for. This includes bank statements, pay stubs, as well as a list of all your monthly obligations. When listing your bills, be sure to remember the ones you may pay quarterly or yearly such as insurance or taxes. Once you call your lender, you will have all the information you need so you do not have to call back or talk to several people about the same issue. Talking to your lender may seem like the difficult part, but once you have given the information and explained the situation, it is largely up them what happens next. If the lender is unable to help you, it is possible to hire a lawyer to work on your behalf with the lender to try to come to an agreement. Although this may cost you a couple hundred dollars, it will be money well spent if you can save your home.