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If you are purchasing your first home or looking to refinance you need to do your research to get the best possible deal on a Wilmington North Carolina mortgage. Below are several definitions of various types of Wilmington North Carolina mortgages and the advantages or disadvantages of each.
One of the most traditional types of loans is the conventional 30-year or 15-year fixed rate mortgage. These loans are nice because they have dependable monthly payments that will not change with fluctuating interest rates. With these loans you can also incorporate a bi-weekly payment plan that would allow you to pay off your Wilmington North Carolina mortgage six years early or more. This option allows you to save thousands on interest payments and is easy to set up.
Another Wilmington North Carolina mortgage option is the balloon loan, which usually has three year, five year, and seven year programs. An advantage of this option is that you will usually have a lower interest rate than with the 30-year or 15-year fixed rate. The disadvantage of this loan is that at the end of the terms you will need to either pay the lump sum remaining or refinance into another loan option.
If you have poor credit due to late payments or bankruptcy you may be able to qualify for a B/C loan. This loan offers temporary financing for your Wilmington North Carolina mortgage until your credit score is strong enough to qualify for a traditional loan.
No matter what your financing needs are, with the help of a knowledgeable lender you will be able to find an appropriate Wilmington North Carolina mortgage to fit your needs. Your goal with any mortgage product should be to pay the least amount of interest over the course of the loan while at the same time keeping your monthly payments affordable.