North Carolina Mortgage Types | NC Mortgages

 North Carolina is one of the most diverse states in the nation. Beautiful mountains, sprawling farms, incredible beaches, energetic cities, and rural towns: the state has a lot to offer. NC is a popular retirement destination, but it is also a great place to buy your first or second home. Whether you’re looking for a mountain home in Asheville or Boone, a downtown condo in Charlotte off of I-77, or a beach house in Wilmington, we can help make the home-buying process simple, painless, and stress-free!

 

Comparing NC Mortgages

Since there are so many types of North Carolina mortgages to choose from, it’s best to do your own research and then speak with a qualified professional about your options. Here’s a brief overview of a few popular NC mortgage types.

 

  • Perhaps you’re relocating to Raleigh for work, but expect to move again within the next 5 years. In this situation, an Adjustable Rate Mortgage (ARM) would be a good option. An ARM has an initial low interest rate and monthly payment, and is great for homeowners who do not plan to remain in their new home for more than about 7 years. Keep in mind, though, that after a certain set time period (e.g. 5 to 7 years), an ARM’s interest rate begins to fluctuate according to current market rates. This means that your monthly mortgage payment could increase.
  • Let’s say that you want to buy a retirement home in Chapel Hill. As a UNC alumnus, you want to get back to your roots and enjoy all that the college town has to offer. You plan to remain in the home for the rest of your life, so a Fixed Rate Mortgage (FRM) may be your best option. With a FRM, the interest rate (and the overall monthly payment) stays the same for the entire loan term. Though most Fixed Rate Mortgages have 30-year terms, you can get a shorter term at a lower interest rate.
  • If you already own a North Carolina home, but need extra cash, you can apply for a home equity loan or home equity line of credit. These second mortgages allow you to use the equity you’ve built in your home to borrow money against the asset. Home equity loans or lines of credit can be fixed or adjustable, and generally have higher interest rates than refinancing.

 

North Carolina Mortgage Tips

Buying a home should be exciting and fun, but it can also be stressful. We’re here to alleviate any stress you may feel by answering your NC mortgage questions and providing home-buying tips and tricks.

 

  • Make a Plan & Know Your Budget: Before deciding on the type of NC mortgage you want, consider how long you plan to stay in the home and/or possible reasons you would sell early. Also think about your employment and income situation. Budget accordingly.
  • Understand the Market: Are mortgage rates currently low and expected to rise? If so, you may want to choose a FRM so that you can lock in a low rate for the life of the loan. If rates are high, you may want to choose an ARM with a low initial interest rate and no prepayment penalty.
  • Select the Best NC Mortgage Lender: One of the most important steps in the mortgage process involves selecting a qualified lender. After all, this is a company you could be working with for years and years (and even decades). You’ll want to find a reliable, trustworthy, and dependable company that has your best interests in mind. By giving us a brief overview of your home-buying needs and goals, we’ll compare lenders and match you with a top-rated NC mortgage company that will guide and assist you each step of the way. By contacting us today, we can send you a no obligation interest rate quote and start you on your way to owning the North Carolina home of your dreams.