Available Loan Products
THE MOST COMMON PROGRAMS
AVAILABLE TODAY ARE:
30 Year Fixed Rate Program
30 year fixed mortgage is a type of mortgage loan that is
repaid by the borrower making 360 equal monthly payments
over a period of 30 years. Since the borrower's payments
are 'fixed', the borrower can expect to make the same monthly
payment for the entire term of the loan. A 30 year mortgage
loan is the most widely accepted program used to finance
a residential purchase, and is available for conventional
and jumbo loans.
15 Year Fixed Rate Program
A 15 year fixed mortgage is a type of mortgage loan that
is repaid by the borrower making 180 equal monthly payments
over a period of 15 years. Since the borrower's payments
are 'fixed', the borrower can expect to make the same monthly
payment for the entire term of the loan. A 15 year mortgage
loan is the most widely accepted program used to finance
a residential purchase, and is available for conventional
and jumbo loans.
1, 3, 5, 7, 10 Year Adjustable Rate Loan Programs
An Adjustable Rate Mortgage (ARM) is a mortgage loan that
is most widely known for its low starting interest rate
(when compared to the 30 & 15 year mortgage loans).
This 'low' introductory rate is used to calculate the mortgage
payment for a specified period of time. Once this introductory
period is over, the interest rate is adjusted periodically
based on a preselected index. The most commonly used index
is the yield on the one-year Treasury Bill. The new interest
rate is determined by adding this index to a set margin
(which is determined by the lender). These
products commonly have an "Interest Only" option,
where you're only required to pay interest. While you do
not lower your balance owed in months that you choose to
make the minimum payment, this allows you to free up more
cashflow for investments or just to make life easier for
months when cash is tight. In addition, because you're qualified
at the lower payment, this option can allow you to qualify
for a home, or a larger home, much easier.
Jumbo
Loan Programs
A jumbo mortgage is a mortgage loan which is larger than
the limits set by Fannie Mae and Freddie Mac (currently
$333,700). Since these two agencies will not purchase these
types of loans, they usually carry a higher interest rate
(to enhance their value and marketability to investors).
5/25, 7/23 Balloon Programs
A balloon mortgage loan is a type of mortgage loan that
has a short term (typically 5 or 7 years), but the monthly
payment is computed using a 30 year term.
Let us help you through this complex world and advise you on the best solution for your unique situation and individual needs! Call today for a Free Rate Analysis and see how much we can help you save! Please contact us at (952) 960-1439.
