Pennsylvania mortgage types can be broken down into six basic categories. Within each category are a number of specific loan types that can be written to accommodate most residential and commercial mortgage needs. With Pennsylvania mortgage rates at all time lows, it’s important to understand what each of these types are in order to quickly take advantage of this buyer’s market before both interest rates and home prices begin to rise again.
Whether you’re seeking a mortgage in Pittsburgh or anywhere else in the state, most mortgage borrowers fall into this loan category. With this type, the borrower is purchasing an existing home. In most cases the home is to be the primary residence, but for some people the purchase may be a second or vacation home, or even as an income generating property.
Refinance – Home Equity Line of Credit
When the value of your home exceeds the amount you owe, you may qualify to refinance your home at a lower rate. In some cases a well-timed refinance can be used to pay off an existing loan, a second loan, credit card balances or other debt. It can also be used to make substantial improvements to a property. Additionally, the equity accumulated in the home may be accessed through a refinance known as a cash out refinance. In this scenario, funds distributed from the loan can generally be used for any purpose and do not need to be spent at one time.
A new construction loan in Pennsylvania is ideal for the potential mortgage borrower who intends to build their property from the ground up. These types of mortgages are naturally different than other types because the loan in question is being issued based on a house that doesn’t exist yet. Therefore, specialized mortgage lenders, like Sail Mortgage, will be required to execute this type of loan properly.
Many small local banks and credit unions often can’t fund very large loans, but other lenders, like Sail Mortgage, can. These types of loans can be used to pay for large or expensive houses, income properties and even investment properties where the loan amounts are generally measured in millions of dollars.
Customized loans for first time home buyers, veterans and farmers must be obtained from a Pennsylvania mortgage lender that is qualified to offer such specialized products, like Sail Mortgage. Often these types of loans come with specific benefits that are only applicable to a certain type of mortgage borrower who must meet very specific requirements.
A reverse mortgage is aptly named because with this type of product the “lender” or bank pays you for your home. Borrowers who are aged 62 or older can qualify for this type of “loan,” during which the lender provides a line of credit based on a number of variables, primarily the value of the home. The homeowner may draw upon this line of credit to pay for living expenses or other needs until the last surviving homeowner passes or the home is sold, at which time the loan will be repaid from proceeds of the sale.
Regardless of the type of loan you need, it’s absolutely imperative that you take advantage of historically low interest rates before the market begins to shift. To find out more and for an immediate consultation, call the number at the top of your screen now.