Mortgages and Mortgage Loan Rates in Delaware
Looking for the best mortgage rate in Delaware? Whether you prefer the mini-urban appeal of Wilmington, or the serenity of Bethany Beach, you’ll want to get the best mortgage available. Here’s how to do it:
Know your options
Determine your goals
Crunch the numbers
Conforming mortgages in Delaware
Knowing the difference between a conforming and non-conforming mortgage can save you money. To start at the beginning, there are two federally chartered agencies that provide liquidity to the U.S. mortgage industry, Fannie Mae and Freddie Mac. This liquidity is largely intended to support the homeownership goals of low- to middle-income families. Conforming mortgage criteria ensure that these target families benefit from Fannie Mae and Freddie Mac activities. Since these two agencies don’t support non-conforming mortgages, rates on those loans will be higher. The conforming criteria include a maximum loan amount, minimum documentation requirements, plus a maximum borrower debt-to-income ratio. The maximum loan amount is reviewed and reset annually by the Office of Federal Housing Enterprise Oversight (OFHEO). Any loan in excess of this maximum is considered a jumbo mortgage.
Second mortgages in Delaware
A second mortgage is a loan taken out on property that already secures another mortgage. Funds available to you through a second mortgage depend on the value of the home, and the outstanding balance on your first mortgage. Interest rates on second mortgages are higher than first mortgage rates, but often, the closing costs are relatively low. Common uses for second mortgages include home improvement, debt consolidation, college tuition, and business start-up costs. As with a first mortgage, if you don’t make the scheduled payments, your second mortgage lender can foreclose. A second mortgage can either be a fixed-rate home equity loan or a variable rate home equity line of credit (HELOC).
Compare Delaware Mortgages
Before you begin requesting mortgage loan offers from Delaware lenders, do some preliminary comparisons. You have many home financing options, from home equity lines of credit to 40-year fixed-rate mortgages. It might take some research to determine which mortgage type is best for you. You can request a personalized offer, or take your questions directly to qualified lenders in your area.
Once you receive written mortgage offers, analyze them with LoanReduce.com’s mortgage calculator. There’s no reason not to, because the calculators are free and require no specialized knowledge to use. They can run the numbers on virtually every aspect of your mortgage, from comparing fixed-rate loans to adjustables, to estimating your mortgage tax savings. Go through this process and you’ll quickly see which mortgage offer is the most beneficial.