A home purchase loan can be use in one of two ways:
Home Buying – a mortgage loan can be used to buy a condominium, house or lot. It can also be used to finance the building of a home. Your credit score, the lender, and current interest rates will determine your interest rate. Payment terms typically extend for 30 years.
Home Improvement – in some cases, mortgage loans can also be used to make improvements to your current home or the home you are purchasing.
The purpose of loan refinancing is to change the terms of your mortgage loan. Refinancing can help you:
- Lower Your Monthly Payments
- Build Equity Faster
- Improve Your Credit Score
The best times to refinance are when interest rates drop or home values increase.