Buying a new home means that you have to go shopping around for a mortgage loan. There are a variety of lenders that you can choose from to finance your property. GMAC Mortgage is a lender that provides a variety of loan packages to consumers and business owners. The Interest rates and APR that GMAC Mortgage offers is quite low, ranging around 3% to 3.661%, depending on the loan term that you receive. You will be able to choose from a fixed-rate, adjustable-rate, FHA loan, VA loan, Jumbo loan or Home Affordable Refinance Program (HARP). You will need to contact GMAC to find out the current rates, since they are always fluctuating.
Purchase Power Mortgage Program
One mortgage loan program that is offered by GMAC Mortgage is available to those who’d like to save money when buying a new home. It has a lot of freebies that include no costs for appraisals, credit reports, underwriting, document prep, recording, Flood Certification, settlement or closing or Lender Title Policies. This means that more of your money is going towards the actual mortgage, giving the borrower more purchase power. Low interest rates are also associated with this program, making it a good option for first-time homebuyers and those who have lower income.
Getting a Refinance Mortgage Loan
If you already have a primary mortgage on a house, you can obtain a refinance mortgage loan in order to lower your monthly payment, cash out or switched from an adjustable-rate mortgage to a fixed-rate mortgage. Those who start off with an adjustable-rate mortgage tend to want to switch because the low initial rate rises higher than what they can afford. If you decide to use a GMAC Mortgage refinance loan to cash out, you’ll be able to use it for college funds, debt consolidation or renovating your home. There are various types of refinance mortgage loans, including adjustable-rate, fixed-rate, VA, FHA, Jumbo and HARP.
The HARP loan is a good idea for people who have been declined for other types of refinance loans. As long as you are making timely payments and have a good payment record for the past year, you could qualify for HARP.
Types of GMAC Mortgage Loans
Choosing between the different types of GMAC mortgage loans should be done with due diligence. Make sure to research the different loan products and ask plenty of questions regarding the terms and mortgage rates. Here is a look into the different mortgage loan options available:
- Fixed-Rate Mortgage: This loan options locks in the interest rate that you have at the time you close your loan.
- Adjustable-Rate Mortgage: Has a low initial interest rate for the first three to ten years, then begins to fluctuate up and down after the time period ends.
- Jumbo Loan: Offers competitive rates for individuals who’d like to refinance their house over the conforming loan limit.
- Home Affordable Refinance Program: A program introduced by President Barack Obama, which allows more people to qualify for mortgage refinancing when other lenders won’t approve them.
- VA Loan: Offers special benefits for military veterans and their spouses who want to refinance their homes.
- FHA Loan: Is a refinance loan that’s issued by the government, offering a low down payment to borrowers.
Choosing the right loan program for your situation can be done by going over your finances and the terms and rates of the specific loan. Make sure to use a mortgage loan calculator to help you get an idea of how much you will have to pay monthly for your home. You can also choose to float or lock-in the rate. Floating the rate can be a good thing if the rate ends up dropping, but this doesn’t always happen. Locking in a rate will secure your rate, even if it rises before you close.
Why Refinance Your House
There are a variety of benefits with refinancing your house. If the time is right, you can transfer your loan to one that has a lower interest rate and APR, saving you money for the remainder of the term. You can also shorten the life of your mortgage loan. You can even use the refinance money to renovate your home and resell it for a profit. Just make sure that the loan terms don’t restrict you from doing this.
The Internet is a great place to shop around for a mortgage loan. If you want to buy a new home, construct a new home or refinance, search around for deals today.