Loan Types
30-Year Fixed Rate Mortgage
This is the most popular and conventional loan program. Your monthly payment
is calculated based on the initial interest rate and never changes for the
30-year life of the loan. This type of loan is considered the most conservative
because there is no risk that changing market conditions will affect your
monthly payment.
20-Year Fixed Rate Mortgage
Like the 30-Year Fixed Rate Mortgage, this program guarantees that your payment
never changes over the life of your loan. Since you are committing to pay
off your loan over a shorter period your monthly payment will be significantly
higher than a 30-Year mortgage loan.
15-Year Fixed Rate Mortgage
The most aggressive of the Fixed Rate Mortgage options, this loan is paid off
in only 15 years, resulting in a much higher monthly payment.
Interest Only Mortgage Loan
Interest Only Mortgage Loans are structured to help borrowers manage their
budget and reduce debt. An interest only home mortgage loan can also be a
great alternative to conventional mortgages for people planning to stay in
their home for less than 10 years.
Interest Only Loans are offered on Adjustable Rate Mortgages (ARMs) or Fixed-Rate
Mortgages (FRM). In today's low interest rate market, going with an Interest
Only ARM instead of a 30-year fixed rate mortgage can significantly increase
your cash flow.
With an Interest Only Loan, you can:
- Lower your monthly payments
- Get more home for your money
- Increase your available cash flow
- Interest Only Mortgages may help you build more equity
- Flexibility - Interest Only Mortgages allow payment flexibility
- Interest Only Mortgage
- Economic conditions may cause you to change careers or jobs without notice
Debt Consolidation Loans
Debt Consolidation is a popular method of eliminating high interest debts and
reducing the number of bills you have to pay. Debt consolidation loans can
also help you attain much needed cash at the time of the financing.
With Debt Consolidations you can:
- Pay off high interest credit card debts and auto loans.
- Have smaller monthly payments.
- Lower your interest payments!
- Refinance your existing mortgage or a second mortgage.
- No equity required for qualified borrowers
1-Year Adjustable Rate Mortgage
This is a 30-year loan in which the rate (and your monthly payment) changes
every 12 months on the anniversary of your loan. The amount of the rate change
(an Adjustment), is determined by a mathematical formula based on the U.S.
bond market (typically the yield on the 1-year U.S. Treasury Bill).
3-Year Adjustable Rate Mortgage
This is a 30-year loan in which the rate (and your monthly payment) changes
every 3 years. Your new rate is calculated based on a predetermined formula.
This loan, while risky, is safer than the 1-Year Adjustable Rate Mortgage
only because it does not adjust as frequently.
5-Year Adjustable Rate Mortgage
This is a 30-year loan in which the rate (and your monthly payment) changes
every 5 years. This loan is a nice compromise between shorter term Adjustable
Rate Mortgages and Fixed Rate programs.
Conforming and Jumbo
Conforming refers to loans up to a federally set limit. Loans above that amount
are considered Jumbo loans. For most people, the amount of the loan they
are seeking is already determined by the amount of down payment they can
afford and the sale price of the home (or existing loan balance in the case
of a refinance).
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