Mortgage Property Types
New Hampshire is a wonderful place to own property, from your first home to a retirement property in the setting of your choice: mountains, lake, historic village, or seaside.
First, congratulations on your choice to buy a home in the Granite State! As you probably know, New Hampshire has so much to offer. Maybe you like the Lakes Region’s relaxing aura, or you prefer being right in the heart of Portsmouth’s culture and bustle. Or you’re a snow lover who wants to be as close to the slopes as possible. There’s an incredible variety of communities in this small state, just as there are many distinct property types. Let’s take a look at those. The most common residence categories you can finance with a mortgage are single-family residences, multi-unit properties (from duplexes to small apartment buildings), manufactured homes, condominiums and townhouses, and cooperatives (or co-ops).
- Single-family homes: Usually defined as freestanding homes on a piece of property, or independent residential structures that function as dwellings.
- Multi-unit properties: These homes have a number of separate and distinct living spaces for individual households. Examples include duplexes, which are multi-unit homes that have two attached units, or apartment buildings with up to four units.
- Manufactured homes: Also known as pre-fab (short for pre-fabricated) homes, these dwellings are made from sections that are built in a factory and then transported to the home site for assembly They typically look like regular single-family homes.
- Condominiums: A real estate property divided into multiple units in one or more buildings. These units are individually owned and maybe attached or detached (the detached version is often called a condex). There will almost always be a homeowners association (HOA) to cover maintenance of the grounds and building exteriors as well as for property insurance purposes.
- Townhouses: These are essentially condominiums with multiple floors. They usually have the same interior layout and exterior design.
- Cooperatives (co-ops): Most often, this is a multi-unit real estate parcel wherein a legal entity holds the title. Co-op residents build equity in the property by purchasing shares in the ownership of the property, although they will not be on the deed.
Refinancing gives mortgage holders the opportunity to secure better terms for their loan. The most common reason for refinancing is to get a lower interest rate, but many applicants are looking to cash out some of their equity as well. In other cases, the existing mortgage carries a variable interest rate, which the applicant wants to convert to a fixed rate to guard against rising rates that could really inflate the monthly payment. Loan length can be another reason to re-fi – for instance, somebody with a 30-year loan may want to move to a 15-year or even 10-year loan so that they can commit to paying off the balance in less time and/or secure a more attractive interest rate.
When interest rates fall, refinancing becomes very popular as homeowners take advantage. If you’re considering a re-fi to secure a lower interest rate, our knowledgeable team can help you determine whether it’s worth it. You may also want to consolidate any outstanding debts you have (credit cards, a car loan, or a home equity line of credit, for example) into your refinanced loan so that you can repay them at the lower interest rate. If you’d like to have a more in-depth discussion about refinancing, our experienced and savvy loan officers are always ready to talk. They’ll get you on the immediate path to refinancing your New Hampshire home at terms that work well for your situation.
The reverse mortgage is gaining popularity among older homeowners who’ve built considerable equity and would like to convert that to cash flow. With this loan type, homeowners who are 55 and up can borrow some of their home’s equity without a monthly mortgage payment. This money is not taxed, and it can be used as the borrower wishes. If you’d like to learn more about reverse mortgages, see our comprehensive overview, found under the Resources tab on our website.