Which Mortgage Loan?
30 year Fixed
- Most common loan. Also known as a
"plain Vanilla fixed loan". Ideal if you will keep loan 10+ years.
Interest Rate and Payment do not change for the entire term of 30 years.
It self-amortizes to a Zero balance at the end of the loan.
15 year Fixed
- Same terms as 30 year Fixed, only
loans pays-off in 15 year. Payment will be higher than 30 year loan.
Popular for refinances. Rate is generally 3/8 - 5/8 percent lower than
30 year loan.
7/23 Two step
- 30 year loan that has an initial
interest rate and payment that is fixed for the first 7 years. These may
be good choices if you know that you will be keeping the loan only 4-7
years. At the 7 year point, you have 3 options:
- To reset the interest rate and
payment for the remaining 23 years. The interest rate will be
calculated using a formula that will make your new rate approximately
3/8 - 3/4 percent higher than current market rates. They will be fixed
for the remaining 23 years of the loan.
- To refinance the loan to another
program. This can be done through your current or any other lender.
- To pay the loan off in full
5/25 Two step
- Same as 7/23, only initial period is 5
years and remaining is 25.
1 year ARM
- Most popular Adjustable-Rate-Mortgage.
Interest rate and payment is fixed for initial 12 months. They change
once every 12 months for the entire term of the loan(Generally 20
years). There are protection "Caps" that prevent catastrophic changes in
the rate. Generally, these "Caps" are 1-2% every year and 5-6% over the
initial rate for the entire loan. The initial rates are approximately
1.5-3% lower than 30 year fixed rates. These loans are popular with
people that do not need the loan for a long period of time.
- 30 year loan with interest rate and
payment fixed for initial period of 3 years. At this time, the interest
rate and payment changes once every 12 months for the remainder of the
loan. These generally offer rates approximately 3/8 - 5/8% lower than 30
year fixed loans. They are popular with people that will keep their loan
2 - 5 years.
- Same terms as 3/1 ARM, only initial
period is 5 years. These generally offer initial rates approximately 1/4
- 3/8% lower than 30 year fixed loans.
- Same terms as 3/1 and 5/1 ARM, only
initial fixed period is 7 years. These generally offer a slightly lower
rate than the 30 year fixed These are popular with people who will keep
their loan for 5 - 7 years.
- Same terms as 3/1, 5/1, 7/1 ARMs, only
initial period is 10 years. Unless you are financing over $207,000, this
program is not recommended by us because the interest rate is often the
same or higher than the 30 year fixed. If you are financing over
$300,700, then this program may be ideal for you if you will keep the
loan 8 - 10 years.
five monthly payment options. To make the decision that is best for you,
you will need to understand the features and benefits of each option.
Click here for an
illustration of your monthly loan statement and a brief description of
the options that may appear.
- These are loans that are offered to
qualified applicants that may have recently filed for Bankruptcy,
foreclosure, or have had late payments on their credit reports. There
are also programs for people who cannot verify their income. These are
referred to as "Band-Aid" loans or "Temporary Financing". Their sole
purpose is to offer financing to these applicants until they can qualify
for Conventional "A" financing. The interest rates and programs vary,
based upon many factors of the borrower's financial situation and credit
We're here to help...
We understand that the mortgage process can be problematic and difficult...
and sometimes you're confused by all the
terminology, programs and
may be available. Maybe you're not sure if you
qualify... and if so, what is the
best loan and term for you. Our team has the know how and experience to help you
find the mortgage loan that is just right for you. We're here to help!
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