For most homebuyers, part of the process of buying a home often includes obtaining a mortgage. Mortgage lenders in Champaign, such as Prospect Bank, strive to offer loan products that are understandable and affordable. Whether a buyer needs a fixed or adjustable rate mortgage, they will sit down and ensure that they come up with the best plan.
Mortgage Types
Many buyers choose a fixed-rate mortgage from mortgage lenders in Champaign. This type of mortgage has the same payment for the full term of the loan, and the interest rate never changes. It is predictable and helps buyers set a budget that won’t change. Another type of mortgage is an adjustable-rate mortgage, which reflects the changes in the market. It may have a lower initial monthly rate than a fixed-rate mortgage, but it can increase depending on the market. As a result, the monthly payment will fluctuate as it follows the market. Because this type of mortgage is often fixed for an introductory period, it works well for people who only plan to own the home for a few years or those who want a lower rate if the market rate goes down.
Other Loans
Mortgage lenders in Champaign offer other types of loans as well. A construction loan is an option for anyone planning to build a custom home from the ground up. This offers the flexibility to build the home people want and is typically a short-term loan with variable rates. A Home Equity Line of Credit (HELOC) is another type of loan that is ideal when people want to use the equity in their homes to pay for a large expense. This may be a renovation or a large event such as a wedding. The best banks offer options so that people have access to the loans they need.
