Everyone who is thinking of buying, or already owns property in the state is interested in the lowest New Hampshire mortgage rates, The best thing to do is start with a plan, it doesn’t matter whether you’re buying a secluded forest cabin, or refinancing a farmhouse. Before you start calling lenders and submitting applications, it is a good idea to learn a bit about mortgages.
New Hampshire Mortgages
Consider your desired objectives for cost savings, which could be low overall interest expenses, the best rate, or the lowest payment. But there are many, many variations within these categories. The general mortgage loan types available in New Hampshire are:
Fixed Rate
Fixed-rate mortgages the interest is fixed for the length of the mortgage, which can be ten, fifteen, twenty, thirty, forty, or fifty years then the amortized principal will be paid in full. The advantage of this type of loan is you will always know how high your payments will be and you can refinance if rates change significantly. If you are planning to keep your house long-term this is the best option, however, you could end up paying more than if you had an adjustable rate.
Adjustable Rate
Adjustable-rate mortgages are popular with people who do not plan to stay in their homes for long period of time. The interest rate fluctuates with a set margin and index rate. You can qualify for a higher loan amount because the interest rate is lower. However the lower the initial interest rates the more uncertainty, and vice versa, the higher the interest rate the more security. Be sure the check the highest possible payments in your cap, it can increase as much as six percent. If you can’t afford the payments at the top of the scale you could be in serious trouble. Many people assume they will be able to refinance to a lower rate, this is not always the case, and often can’t afford, or just don’t qualify for a refinance loan.
Home Equity Loan
Home equity loans the homeowner borrows a pre-determined amount of money with a fixed payment schedule and a set interest rate. This is a better option for someone who wants to lock in a certain interest rate, either because they think interest rates are going to increase or because they like the certainty of knowing what their payment schedule will be every month.
A home equity loan also is a better option than a home equity line if you know exactly when you want to borrow it how much money you need to borrow.
Home Equity Line of Credit
Home equity lines of credit (HELOC is the ability to borrow up to a certain amount of money from a financial institution. Your home is used as collateral, meaning that if you can’t repay according to terms of the line, then the lender has a right to foreclose on your house. Typically, HELOCs (pronounced HEE-locks) have floating interest rates that can change periodically.
Home equity lines can be used by the borrower to pay for anything. The borrower literally receives a checkbook for the HELOC and can write checks until the line’s limit has reached its maximum. Most HELOCs also have online Internet access so you can use the money online using the HELOC just like a regular online checking account. A HELOC be paid down at any time, without penalties like a credit card balance.
Borrowers use home equity lines for almost anything. In the beginning, HELOCs were designed for homeowners to pay for home improvements and other home-related projects. Home equity lines are extremely serious, since they’re secured by your house. If you can’t meet the payment obligations, your homeownership is in jeopardy.
- Who should get one: Someone who might need extra cash for home improvements, or to buy a different house.
- Who shouldn’t: Do not use a HELOC to over indulge for things like trips or to finance other debts, for example: credit card purchases. HELOCs are guaranteed by your house, which means the stakes are very high.
FHA Loan
FHA Loans the federal government guarantees loans for FHA-approved financial institutions so their risk of loss is reduced if they lend to people who are very likely to default on their mortgage payments. The FHA program has been in existence since the 1930s to help revitalize the housing market by making loans accessible and affordable. It is not just for first-time home buyers, anyone can get an FHA loan. It has been used to help military personnel who return from war and their families, the elderly, handicapped, or lower-income families.
VA Loan
VA loans are home loans available for purchase of a primary residence to consumers who have served or are presently serving in the U.S. military. The Veterans Administration (VA) guarantees loans made by private banks, savings & loans, or mortgage companies to veterans who qualify.
New Hampshire Refinanced Mortgages
You might be thinking about a mortgage refinance if your existing mortgage no longer suits your needs. A refinance can allow you to:
- When market rates are less than your existing interest it would decrease your monthly payment. By lengthening your loan’s maturity, you might also get a lower payment.
- A cash-out refinance can help you raise additional cash with a debt consolidation, college tuition, increase funding for a home improvement project or other one-time expense. To do this, you need to have equity and borrow more than you owe on your current mortgage.
Recourse and Non-recourse loans
A refinanced loan is a recourse loan, whereas, a purchase loan is a non-recourse loan. The type of loan will be noted on your mortgage paperwork.
Foreclosure Process
In New Hampshire, lenders may foreclose on a mortgage or deed of trust in default by using either the judicial or non-judicial foreclosure processes or any of the following special methods: Possession and Publication, Entry under Process, or Entry and Publication.
Judicial Foreclosure
In New Hampshire, the judicial process of foreclosure is very similar to that of the strict foreclosure process used in other New England states. Before foreclosure proceedings can begin, the lender must file a complaint against the borrower and acquire a decree of sale from a court having jurisdiction in the county where the property is located. Usually, if the court agrees that the borrower is in default, they will grant a set period of time for the borrower to pay the delinquent sum, plus costs incurred. If the borrower does not pay off the loan within the set period of time, the court will then order the property to be sold at auction. Anyone may bid at the foreclosure sale, including the lender.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A “power of sale” clause is the section in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee.
Special Methods of Foreclosure
1. Entry under Process – The lender may foreclose by entering the property under process of law and maintaining actual possession of the property for one year.
2. Entry and Publication – By peaceable entry onto the property and continued, actual, peaceable possession for a period of one year, and by a publishing a notice stating the time of possession, the lender and borrowers name, the date of the mortgage and a description of the property in a newspaper of general circulation in the county where the property is located. The notice must be published for three (3) successive weeks, with the first publication appearing at least six (6) months before the borrowers right to redeem has expired.
3. Possession and Publication – By the lender in possession of the property publishing a notice stating that from and after a certain day, the property will be held for default of the mortgage and the borrowers rights to the property will be foreclosed. Said notice must be published in a newspaper printed in the county where the property is located for three (3) successive weeks and must give the borrower and lenders name, the date of the mortgage, a description of the property and the lenders intention to hold possession of the property for at least one (1) year.
Borrowers have no rights of redemption when any of the three (3) special methods of foreclosure are used.
Shopping for New Hampshire Mortgages
When you feel that you are ready to start comparison shopping for New Hampshire’s best mortgage rates; review and compare New Hampshire interest rates, use the New Hampshire broker directory to find someone in your area. You should, of course, budget for payments, and review amortization tables to better understand the mortgage process then contact lenders and brokers to request quotes.
You’ll receive a written commitment letter when you submit a loan application along with the proposed loan terms. Be very careful to compare these quotes on a corresponding basis. For example, some mortgage rate quotes, may include points, however, others may be quoted without points. The lender’s advertised interest rate and the quote that you’re offered may be different. The advertised rate is usually offered to buyers with the best income qualifications and credit. Take a moment to review New Hampshire rates by credit quality especially if you have bad credit.
Fastest Growing Cities in New Hampshire
Under New Hampshire law there is no difference between a city and a town. Cities are just towns whose form of government was changed by an act of the state legislature. Towns can change their form of government by voter approval.
Manchester
Manchester is the largest city in New England and is second only to Anchorage Alaska as a tax-friendly city. Because of this it is considered a great place to start a business. Forbes magazine says that it is the cheapest place in the United States to live.
Berlin
Berlin is located in Northern New Hampshire on the shore of the Androscoggin River at the edge of the White Mountains and is located in the White Mountains National Forest. It is home to the White Mountains Community College, it is a member of the Community College System of New Hampshire. The Berlin Fish Hatchery and the Northern Forest Heritage Park are located in Berlin.
Concord
Concord the capitol of New Hampshire and it is the county seat of Merrimack County. It includes the villages of Penacook, East Concord, and West Concord. It is home to the University of New Hampshire School of Law. The only school of law in the state.