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[1] Fixed Rate Mortgage Loans
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Fixed Rate loans offer fixed mortgage payments over the life of a loan. Loan rate does not change over the course of the loan. Several different terms are available to meet your individual needs. The maximum loan amount for Conforming Fixed rate loan is $417,000. Fixed rate jumbo loan programs are available for loans exceeding $417,000. Popular Fixed Rate loans are:
- 30 Year Fixed: Loan's span is 30 Years and your rate and payment are fixed for 30 years
- 15 Year Fixed: Loan's span is 15 Years and your rate and payment are fixed for 15 years
- 20 Year Fixed: Loan's span is 20 Years and your rate and payment are fixed for 20 years
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[2] Adjustable Rate Mortgage (ARM)
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With an adjustable-rate mortgage (ARM), the interest may
change from time to time, typically in relation to an index. While the
monthly payments that you make with a fixed-rate mortgage are
relatively stable, payments on an ARM loan will likely change from time to, and
as you pay down your principal.
There are advantacges and disadvantages of ARMs.
For example, an ARM is good if you are not going to live in a home for long term.
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[3] One Year Adjustable Loans
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This loan may offer a discounted rate for the first year. The rate, principal and interest payments adjust annually. There are limits built into the loan, so that your interest rate will not increase by more than, say 2%, per year or, say 6%, over the life of the loan. This loan is perfect for those needing a lower first year payment. This loan can be assumed by qualifying borrowers. It is also great for those planning to sell their home in the near future. A conversion option may allow you to fix the interest rate in the future.
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[4] Hybrid (Fixed/Adjustable) Rate Mortgage Loans
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This loan grants a fixed rate for the first few years (3, 5, or 7 years), and automatically converts to an adjustable loan with the rate adjusting annually thereafter. This loan attracts homebuyers that want the security of fixed principal and interest payments for several years. The initial fixed rate is lower than our standard fixed rate mortgage. A conversion option may allow you to fix the interest rate in the future. This loan can be assumed up until the time it is fixed.
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[5] Interest Only Mortgage Loans
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This type of loan allows borrowers to make lower payments for the first few years (1,3,5,7,10) of a fixed-rate or adjustable-rate mortgage by offering an interest-only period during the early years of the loan, followed by a fully amortizing period. This type of mortgage benefits financially savvy borrowers interested in managing their monthly cash flow.. It also helps, borrowers keep their payments low during the early years of a loan.
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[6] Zero Down Loans
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This type loan allows a borrower to borrow 100% of the purchase price and does
not require a borrower to pay any down payment. At the same time, the borrower may need to pay closing cost. This is a good loan for all those borrowers who have no savings and can afford the monthly payments.
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