More Mortgage Information:
Choosing a Mortgage Lender
Obtaining a Mortgage is usually the largest financial
investment that you will make in your lifetime; therefore you should
make sure you use a knowledgeable individual to process your loan.
It is important to find out if you are working with an individual that
is licensed or not. A loan officer typically is not knowledgeable in
all aspects of the loan process, and they are limited in the loan options
that they can offer you. A licensed Mortgage Broker has taken the time
to obtain the required state educational requirements, and passed the
state exam and keeps abreast of all changes in the Federal and State
laws.
Choosing
a Loan
There are
hundreds of different loan products available to suit each individual's
specific needs. Here are just a few. Please contact us and a licensed
Mortgage Professional will fully explain each product and suggest
a loan that would be best for you.
- 100% financing available
(Certain restrictions and credit score apply)
- 30 Year Fixed, 20 Year
Fixed, 15 Year Fixed, 10 Year Fixed
- 1 month, 6 month, 1 year,
3/1, 5/1. 7/1 10/1 adjustable rate mortgages
- Interest only loans
- Loans that have a start
rate as low as 1% with 4 payment options each month (Start rate,
Intrerest only, 30 year fixed, 15 year fixed)
- Stated Inclome Loans
- State Income/Stated Asset
Loans
- No Doc Loans
- Construction Perm Loans
- Lot Loans
- Home Equity Lines of
Credit
- Second Mortgages
- Owner occupied, second
homes, investment properties
- Financing available down
to a 500 credit score
Down
Payment Options
1. Personal Savings
2. Gift Letter
3. Personal Reserves/Sellable Assets
4. Home Equity
5. Joint Ownership
A
Mortgage
A
mortgage is a loan for the cost of the property. The title is held
by the lending institution until you pay the loan back according
to its terms. The length of time you have to pay it back, under what
circumstances you can repay early, the interest rates you pay for
use of the loaned money, and other terms, are all spelled out in
the contract for your mortgage. You will be expected to put some
cash money into your purchase, and you may have to prove to the bank
that you have enough other money to make your payment. Some mortgages
are assumable, meaning the person you sell the house to can assume
your debt, and take over the loan payments.
Down
Payment
The
down payment on your home will guarantee the lender that it will
not lose money if you fail to pay your debt. The lender requires
the mortgage to be less than the value of the house, so that the
loan will be paid back if the house has to be sold. The down payment
makes up the difference between the cost of the house, and the loan
you can get to purchase it.
The
Conventional Rate Mortgage
This is a Mortgage with an interest rate that will stay the same for
the entire term of the loan. Interest rates change daily.
The
Adjustable Rate Mortgage (ARM)
An Arm is a mortgage that has an initial fixed period then adjusts
depending on market conditions on either a monthly or annual basis.
All Arms have an initial adjustment cap for the first change then a
lifetime cap over the term of the loan. Example: a 3/1 Arm with an
initial adjustment cap of 2% and a lifetime cap of 5% means that the
initial interest rate is fixed for the first 3 years, and then on the
37 th month it can adjust up or down no more than 2%. The rate then
is fixed again for the next 12 months and adjusted each 12 months thereafter.
During the entire term of the loan the interest rate can never go higher
than 5% above the initial start rate. Lenders all use one of the indices
i.e., Libor, MTA or COFI. During the adjustment the lender takes the
Margin that is set at time your mortgage closed then adds the Index
and rounds it to the nearest 1/8 of a point, that is your new interest
rate until the next change.
The
FHA Loan
FHA
loans are insured by the Federal Housing Administration. This makes
this a very low risk loan for the lender. These loans are designed
to encourage lenders to make loans for residential properties. The
terms are also favorable for the buyer, and are worth consideration.
The
VA Loan
These
programs offer long-term financing to eligible veterans or their
surviving unmarried spouses, with little or no down payment required.
VA loans are guaranteed by the Veteran's Administration.
Mortgage
Estimator
Our
online mortgage estimator below will figure out your mortgage
payment. Input all the appropriate information, then click on "Calculate" to
see your payment amount. Please note: Actual costs
may vary depending on your lender. This calculator is designed
to provide a guide only.
