LOAN
PROGRAMS...
Whether you're a first
time home buyer, moving to a new home or simply refinancing
your existing mortgage, our National Network of Independent
Mortgage Brokers and Lenders can help. They may also be
able to help you purchase a home with a low down payment
while maintaining flexible loan guidelines*. The brokers
and lenders herein represent 100's of lenders, and regardless
of your situation or need they will most likely have a lender
that can meet your requirements.
Fixed
Rate Mortgages
This is the most common
type of mortgage program. Your monthly payments never
change because the interest rate remains fixed for the
life of the loan. Property taxes and homeowners insurance
may increase, but generally your monthly payments will
be very stable. Fixed-rate mortgages are available for
30 years, 20 years, 15 years and even 10 years.
This
loan is probably right for you if you don't plan to move
or refinance for at least 10 years and you expect interest
rates to increase over this period, or you just feel uncomfortable
making an interest-rate bet at this time. This loan may
also be right for you if you don't expect your income
to increase significantly over the next several years.
Adjustable
Rate Mortgages
These loans generally
begin with an interest rate that can be up to 1+ percent
below a comparable fixed rate mortgage, which may allow
you to qualify for a more expensive home. The interest
rate may change at specified intervals (for example, every
year) depending on changing market conditions; if interest
rates go up, your monthly mortgage payment will go up.
On the positive side, if rates go down,your mortgage payment
will drop also. Adjustable rate mortgages are generally
available for 10 years, 7 years, 5 years, 3 years and
1 year.
This
loan may be right for you if you need to qualify for the
largest loan possible using your current income and you
are confident that your income will increase significantly
in the short term to cover any anticipated increases in
rates over the next few years. Although this loan comes
with adjustment rate caps (usually 2% limit per adjustment
and 6% over the lifetime of your loan), you should assume
that your first adjustment will generally result in an
increase in your interest rate and payment. Another factor
that needs to be considered with an ARM, would be your
ability to refinance out of this type of loan in the future
if your adjustments became to expensive for you to pay
in the event of a worse-case rate scenario.
Balloon
Loans
A balloon loan may be
a prudent choice for borrowers who prefer the stability
of a fixed-rate loan, but plan on moving in a few years.
Monthly payments stay the same for the balloon period.
At the end of the balloon period, the remaining loan balance
is due and payable at this time, most plans offer a conversion
option when certain conditions are met.
FHA
Loans (Federal Housing Administration)
Government assisted loans may ease
first-time buying with low down payments, easy qualifying
rules and acceptance of closing costs from a gift.
VA
Loans (Veterans Administration)
For active, retired or
reserve military, these Government assisted loan programs
offer low rates and low or no money down.
Other
Loan Types
There are several other
loan types that may be available to you as well depending
upon the state you are located in, and the broker/lender
that you are working with. Please contact your state broker
and/or lender for a full list of residential loan programs
that they may offer.
All
services are provided by Independent Mortgage Brokers/Lenders
that service, or are located in your state. Available
loan types will vary from state to state, broker to broker
and lender to lender.
