Choosing the right mortgage to pay for your new home is as important as picking the home. SuperMoney’s resources simplify the process of comparing lenders and finding the best rates available.
If you don’t work in the mortgage industry, nothing can prepare you for buying your first home, negotiating a reverse mortgage, or selecting a home equity line of credit. Despite the many books and articles out there on the subject, the process can be intricate and confusing. Each lender has a different process and borrowing criteria, and you also have to deal with sellers, real estate agents, title companies, and more.
To help you through this process, we’ve put together a comprehensive guide that can help you understand what you need to know before you begin shopping. Once you have a basic understanding of each product, SuperMoney’s comparison tools will help you get the best rates and terms available.
Home Purchase Mortgages
In 2018, Americans owed about $9.2 trillion in mortgage debt, which represents 68% of all consumer debt. As the most significant source of debt for Americans, it pays to understand your options before diving into an arrangement.. Learn everything you need to know about financing a house with a mortgage. Read all about the tips and trick pros use to save money on interest rates and closing fees.
Once you know the type of mortgage you need and the features that matter the most to you, use SuperMoney’s mortgage comparison tool to find the best lenders in the business. Read expert reviews and also user comments on the customer service of mortgage providers.
Borrowers who carefully decide how much they can afford can balance owning their home and meet their other financial goals
Home Equity Lines of Credit (HELOCs)
Low interest rates and modest fees make a home equity lines of credit (or HELOCs) an alluring option for homeowners in the market for credit. If you don’t have a mortgage or you owe less on your mortgage than the value of your home, you may qualify for a HELOC. However, before making a decision, carefully weigh the costs of a home equity line against the benefits. Make sure you understand the credit terms lenders use and don’t enter an agreement without taking on undue financial risks. Remember, if you don’t make payments on a HELOC, it could mean the loss of your home. SuperMoney’s guide on HELOCs makes it easier to find the best rates and terms.
Compare the terms and features of leading lenders and see what other users are saying about how they treat their customers.
Reverse mortgages use your home as a guarantee for the loan, as occurs with a traditional mortgage or a HELOC. However, unlike a traditional mortgage, a reverse mortgage is repaid when the borrowers either sell the home or die. With a reverse mortgage, you won’t have to make monthly mortgage payments. You will need to pay property taxes and homeowner’s insurance and keep your house in good repair though. Notice that because interest and fees are added to the loan balance each month, your loan balance will increase, not drop, over time. To qualify, reverse mortgage borrowers must be 62 or older. In most cases, borrowers use the loan to help pay for living expenses.
As you can see, reverse mortgages are not the easiest to understand credit products. SuperMoney has created an in-depth guide that will help you decide on the terms and features that matter the most to you.
Compare rates and terms and see which lender offers you the best deal.