For example, you refinance with a 30 year, fixed loan (with a cash out) to pay for a remodeling project—even though you plan on moving, and thus paying off the loan, in 10 years. If there are any fees associated with this loan the APR would not be accurate as it is assuming the loan is being paid for the entire 30 years, not just the 10. If the payments are made for the entire length of the mortgage then the true mortgage value will be identical to the APR, otherwise it will be higher. If the loan is a zero cost loan, then an early payoff doesn’t matter. If your money isn’t coming from a cash out refinance, you have the option of getting a second mortgage—either a Home Equity Line of Credit (HELOC) or a home equity loan. The home equity loan is really just a second mortgage. The HELOC is a line of revolving credit. There are important differences between the two. Once you decide on the terms and type of loan you want, compare rates from internet mortgage sites. Have Good Faith Estimates emailed to you and look at sections 800 to 813 where you can see all the actual costs associated with the loan. These rates together with all fees will give you the APR’s. The lowest APR is the best mortgage if you pay on the loan for the entire term. Remember, however, to get the loan’s true cost you need to figure in any early payoff.
Personally, that’s all we would look for. Odds are your mortgage will be sold before or shortly after your closing so we really don’t see much in the way of “customer service.” As we said, we would love to recommend a lender and receive a nice finder’s fee but that would benefit only us and the lender. If this still seems like too much work, we would be happy to help you through the process at absolutely no cost.
We can sometimes offer our own financing if one doesn’t quite fit the lending requirements of a bank. Since this financing is done by Beyond-Basements we set our own qualifying criteria. This is done on an individual basis with no preset terms. A representative would be glad to go over the specifics with you at your home.