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| 30 Year Fixed |
| 15 Year Fixed |
| 3/1 ARM |
| 5/1 ARM |
| 7/1 ARM |
| Interest Only Fixed and ARMs |
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30 Year Fixed
This loan is the most popular form on mortgage finance. This loan offers the borrower a fixed interest rate and fixed principle and interest payment for the entire 30 year term. Loan amounts can be as high as 100% of the purchase price with restrictions. This type of financing can also be used in conjunction with a second mortgage to avoid mortgage insurance which is required when the loan amount exceeds 80% of the purchase price of appraised value.
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15 Year Fixed
With rates at historic lows the 15 year fixed is becoming a sensible and smart way to finance your home. This loan can be used up to 100% of the purchase price of the home with restrictions and can be tailored like the 30 year fixed loan above. The primary benefit to this loan is paying your home off in half the time of the 30 year loan without doubling your principle and interest payment.
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3/1 ARM
For borrowers that only intend to occupy their home for a predetermined amount of time these Intermediate term loans are perfect. Each loan has a period of time that the interest rate is fixed; which could be 3 years, 5 years, or 7 years, respectively. After the fixed rate period the interest rate adjusts according the the Wall Street Journal One Year LIBOR rate. These programs allow the borrower to secure a lower rate than available on the 30 year fixed for as much time as needed. Most homeowners in the U.S. reside in their homes for only 3 to 5 years which make these programs very sensible alternatives to the standard fixed rate. These programs are available up to 95% of the purchase price or appraised value.
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5/1 ARM
For borrowers that only intend to occupy their home for a predetermined amount of time these Intermediate term loans are perfect. Each loan has a period of time that the interest rate is fixed; which could be 3 years, 5 years, or 7 years, respectively. After the fixed rate period the interest rate adjusts according the the Wall Street Journal One Year LIBOR monthly treasury cost of funds index. These programs allow the borrower to secure a lower rate than available on the 30 year fixed for as much time as needed. Most homeowners in the U.S. reside in their homes for only 3 to 5 years which make these programs very sensible alternatives to the standard fixed rate. These programs are available up to 95% of the purchase price or appraised value.
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7/1 ARM
For borrowers that only intend to occupy their home for a predetermined amount of time these Intermediate term loans are perfect. Each loan has a period of time that the interest rate is fixed; which could be 3 years, 5 years, or 7 years, respectively. After the fixed rate period the interest rate adjusts according the the Wall Street Journal One Year LIBOR rate. These programs allow the borrower to secure a lower rate than available on the 30 year fixed for as much time as needed. Most homeowners in the U.S. reside in their homes for only 3 to 5 years which make these programs very sensible alternatives to the standard fixed rate. These programs are available up to 95% of the purchase price or appraised value.
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Interest Only Fixed and ARMs
These are relatively new programs available for only 30 year terms. They allow a borrower to finance their home and make interest only payments for either 10 or 20 years with the loan balance being amortized over the remaining 20 or 15 years. Borrowers qualify at the interest only payment and can borrow up to 95% of the purchase price or appraised value of the property when done in conjuction with mortgage insurance.
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