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| Fixed Rate Mortgage |
| Interest Only Mortgages |
| Option ARM - Deferred Interest Mortgages |
| FHA Government Insured Mortgages |
| Reverse Mortgages |
| NO MONEY DOWN |
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Fixed Rate Mortgage
You are probably familiar with a fixed rate mortgage. Your parents more than likely had one, as did their parents before them. The major advantage of fixed rate mortgages is that they present predictable housing costs for the life of the loan. Some fixed rate mortgages you will probably hear about are 40/30/25/20/15/10-Year Fixed Mortgages.
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If you are looking for a traditional fixed rate loan, we invite you to take advantage of our database of the most competitive lenders available. Just complete our online application our customer service representative will contact you with the rates and fees from all of our lending partners. |
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Interest Only Mortgages
The loan product commonly called 'Interest Only Mortgage' is an interest-only payment option which is offered on fixed rate or adjustable rate mortgages or on Option ARM. The option to pay 'interest-only' lets you pay only the interest portion of your monthly payment for a fixed period (three, five, seven or ten years). At the end of that period your loan becomes fully amortized, thus resulting in greatly increased monthly payments. Your new payment will be larger than it would have been if it had been fully amortizing from the beginning. The longer the interest only period, the larger the new payment will be when the interest only period ends.
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+ During the interest only term your monthly payments are as low as they can possibly get;
+ You can qualify for a larger loan amount, maybe even a larger home;
+ During the interest only term you won't pay out cash to build equity;
+ Make investments with payment difference to potentially build your net worth;
+ The entire monthly payment qualifies as tax-deductible interest during the interest only period.
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Option ARM - Deferred Interest Mortgages
This loan program is an adjustable rate mortgage with added flexibility of making one of several payment options every month, in order to better manage your monthly cash flow. It's low introductory start rate allows you to make very low initial mortgage payments and some lenders use the low qualifying rates to enable you to qualify for more home. The minimum payment option can help keep your monthly payments affordable.
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FHA Government Insured Mortgages
Help low-to-moderate-income homebuyers purchase homes with low down payments (approximately 3%) and flexible qualifying guidelines. These loans are insured by the Federal Housing Administration (FHA), which sets loan limits that vary by area. With an FHA mortgage, you can use a gift or unsecured loan for down payment and closing costs. FHA mortgages are available in fixed-rate and adjustable-rate mortgage options. Also, these loans are usually assumable (along with the current interest rate) by the next owner when you sell your home. This is seen as a strong benefit in certain rate environments.
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-Lower credit criteria than FNMA or FHLMC
-Low down payment: 3% or less
-No prepayment penalty
-FHA regulated closing costs
-Seller can pay up to 6% towards buyer's costs
-FHA home loans are assumable, allowing a person to take over the mortgage without the additional cost of obtaining a new loan.
-Expanded qualifying ratios in comparing total monthly debts to monthly income
- Gift funds may be used for as much as 100% of the applicable closing costs and down payment. |
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Reverse Mortgages
Reverse mortgages a special type of home loan - are becoming popular in <?xml:namespace prefix = st1 />America. They can give older Americans greater financial security to supplement social security, meet unexpected medical expenses, make home improvements, and more. Borrowers must be at least 62 years old and occupy as their principal residence. The maximum loan amount depends on the age of the borrower, the expected interest rate and the appraised value of the property.
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There are many payment options available. For example, borrowers may receive monthly payments for a fixed period they select, a line of credit, lump sum cash-out or any combination of these examples as long as they occupy the home as a principal residence. Reverse mortgage need not be repaid until the borrower moves, sells or refinances the property, or dies. FHA insures the lender against the risk that proceeds from the sale of the property may not be sufficient to pay off the mortgage balance. If the property is sold, the homeowner (or heir) receives any proceeds in excess of the amount needed to pay off the mortgage. |
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NO MONEY DOWN
The main advantage of this type of loan, also known as 100% Financing, is the ability to buy a home with almost no money down. If you have a strong credit profile but have limited funds to commit to a down payment, then 80/20 mortgage is just right for you. Lenders typically require a down payment of at least 10-20 percent of the purchase price. If the loan amount is for more than 80 percent of the purchase price, Private Mortgage Insurance (or PMI) is usually required. You can avoid paying PMI by getting a Second Mortgage ('piggyback loan') to back up your first mortgage.
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Combined, the two loans allow you to purchase 100% of your home with no money down.
Closing costs may also be financed based on actual loan scenario.
Call today to speak to a customer service representative today |
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