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Your Mortgage and Home Equity Line of Credit FAQs Answered

Did you know that Freedom Bank has more than just checking and savings accounts? Freedom Bank is here to help you obtain a mortgage, refinance your home, or even take out a home equity line of credit (HELOC). Residential home loan experts are available to help you find the right loan for your needs. 

Types of Mortgage and Home Loans

Classic home mortgage loan options come in Fixed Rate and Adjustable Rate (ARM). The most common is a 30-year Fixed Rate mortgage. Fixed Rate mortgages have a fixed interest rate for the entire term of the loan. Because the rate is fixed, you can budget for the entire term of the loan. An Adjustable Rate mortgage has a varying interest rate which can sometimes swing higher and lower throughout your loan term. If you are looking to sell or refinance soon, an ARM loan may be your best bet. 

When determining which type of mortgage is best for you, consider affordability, length of the loan/how long you plan to stay and current mortgage rates. You may also look into FHA or other government funded mortgages.

Refinancing

Refinancing your home loan to a lower rate allows you to save money on your monthly payments and tap into your home’s equity. Refinancing your mortgage replaces your current mortgage with a brand new one, often with a reduced interest rate. During this process you have the option to switch from one type of loan to another if you choose to. You may also choose to change the duration of your loan, but keep in mind, with this refinance the years invested in your previous mortgage do not carry over and you will be starting from scratch. 

If you are thinking about refinancing, ask yourself what your goal is. Is it to reduce payments, shorten your loan term or switch your type of loan? Based on your answer you can then continue to research current refinance rates and talk with a mortgage specialist to determine the best loan option to meet your goal.

Home Equity Line of Credit (HELOC)

In life, sometimes unexpected expenses or opportunities occur. Did you know that you can use the equity in your home to get cash? You can use the value in your home to finance education, home remodel, emergency repairs or another opportunity. Most HELOCs have adjustable interest rates and require the borrower to meet certain requirements. Aspects that may be taken into consideration include debt-to-income ratio, credit score and home value vs. amount owed. Freedom Bank can help you navigate the HELOC process. Curious how much you may be able to borrow? Check out this HELOC calculator for a rough estimate. 

Want to learn more about available home loan options? Reach out to one of our home loan specialists online or at any of our five branch locations. Our experts can help you weigh your options and set you up on the path to success. The HELOC calculator is an estimator tool and is not guaranteed.