Tennessee Mortgage Types | TN Home Equity Loan

Whether you’re a first-time Tennessee home-buyer, or you’ve lived in TN your entire life, it’s important to understand the home-buying process. With so many interesting, fun, and relaxing locations in The Volunteer State, it’s much easier to find a home than to figure out the x’s and o’s of your mortgage. That where we can help: we offer invaluable, current TN mortgage information and lender suggestions.

Tennessee Mortgage Types: Which Suits You?

There are many types of TN mortgages to choose from. Read below to learn abou t three popular mortgage types, as well as common scenarios that suit them.

• What if you’re moving to Knoxville to teach at UT for a few years, but expect to relocate after the teaching stint? In this case, an Adjustable Rate Mortgage (ARM) would be a smart option. With an ARM, you have an initial low interest rate and monthly payment that could increase or decrease after a set number of years (usually around 5 years). An ARM a great option for temporary homeowners who plan to sell their home before the initial low interest time period expires.
• What if you want to buy a retirement cabin in Chattanooga near the Tennessee River? What type of mortgage would work well for you? If you are currently living on a fixed income, and you plan to stay in the home for the rest of your life, a Fixed Rate Mortgage (FRM) could be your best option. A FRM has an interest rate and monthly payment that stays the same for the entire loan term, making this the most stable and predictable TN mortgage type.
• What if you’re looking to begin your music career in Nashville, but you’re on a fixed budget and need a very low initial monthly payment? If this scenario sounds familiar, you could benefit from an Interest Only Mortgage (IO Mortgage). An IO Mortgage has two payment periods. During the first payment period (usually a few years), the homeowner must only pay interest on their new property. This means that their monthly mortgage payment will be quite low. Once the interest-only period expires, however, he or she is responsible for both principal and interest payments. As you can see, an IO Mortgage is ideal for a homeowner with limited cash flow who expects to earn more money in the near future.

TN Home Equity Loan as a Second Mortgage
If you already own a Tennessee home and would like to convert your home equity into quick cash, you can get a home equity loan. This type of second mortgage has a fixed interest rate that is generally higher than that of a conventional mortgage or refinancing. A home equity loan is a great option for homeowners who:

• need extra cash to help pay for daily living expenses, home improvements, or outstanding debt;
• cannot afford to repay the closing costs associated with mortgage refinancing;
• have a competitively-priced mortgage;
• want or need to pay off their home equity debt quickly.

Who is the Best TN Mortgage Lender?
Choosing the ideal mortgage type can be a daunting task. That’s why finding an accredited, trustworthy TN mortgage lender to help guide the process is a top priority for any Tennessee homebuyer. If you tell us a little about your home-owning needs and goals, we’ll match you with a top-rated, reputable Tennessee mortgage lender within a matter of minutes. Why wait? Get started today, and take one step closer to unlocking your Tennessee dream home!

Whether you have your sights set on a home near Graceland in Memphis, a split-level in Jackson off of I-40, or a cottage in eastern TN near the Great Smoky Mountains, we can help you every step of the way. Contact us today to receive a free home mortgage quote!