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Knowing what loan is right for you is an art. This page is a great place to start. Feel free
to review this information or simply be in touch. We can walk you through the various products available, from conventional loans and government programs, to jumbo and super jumbo loans, we can answer all your questions. Email Us or call during business hours for immediate assistance.

LOAN OPTIONS

3o Year Fixed Mortgage – This is a fully amortizing program with a fixed interest rate over the life of the loan. You pay both principal and interest each month and at the end of 30 years the loan is paid in full.

15 Year Fixed Mortgage – This is a fully amortizing program with a fixed interest rate over the life of the loan. You pay both principal and interest each month and at the end of 15 years the loan is paid in full.

First Time Home Buyers – Special programs may be available to you if you are a first time home buyer. This is currently this defined as, “not holding interest in primary real estate property for the most previous three year period.” These programs may offer decreased down payment eligibility and special grants, and include government programs as well. They are beneficial by allowing you to keep money in the bank, increasing your borrowing power and giving more flexibility in underwriting guidelines.

VA Loans – These are loans that are guaranteed by the VA, or Veteran’s Administration. They offer fixed and adjustable rate loans to eligible and qualified veterans. The VA programs allow for zero down payments, higher debt-to-income ratios and more flexible credit package underwriting guidelines.

FHA Loans – These are loans that are insured by the FHA, or Federal Housing Administration. Generally, most people can qualify for an FHA loan, with the two requirements being a social security number and a valid state driver’s license. These programs allow for lower down payments, higher debt-to-income ratios, and more flexible credit package underwriting guidelines. Offered are fixed and/or adjustable rate mortgages, which tend to remain competitive with the conventional market. However, they do have limitations as to maximum loan size, which can vary by county, and occupancy must be owner-occupied.

Periodic Fixed ARM  – An ARM is an Adjustable Rate Mortgage and with a Periodic Fixed ARM there are many factors involved. This may include a declining interest rate market, increasing borrowing power, overall cash flow preferences or monthly budgetary plans. The interest rate and/or payments are protected from sizable changes in the market by “caps”. The caps limit movement within a reasonable level. They can be used for either short or long term objectives.  Index + Margin = Rate

1yr Periodic Fixed ARM – This loan is fixed for the first twelve months of the loan and then adjusts every twelve months thereafter based on the current index value plus margin. The interest rate and payment rate both change annually with payment caps of one percent and life of the loan caps of six percent.

3yr Year Periodic Fixed ARM – This loan has a fixed rate for the first three years of the loan and adjusts thereafter based on the index value plus margin. The interest rate and payment rate both change after three years with payment caps of two percent every six months and life of the loan caps of six percent.

5yr Periodic Fixed ARM – This loan is fixed for the first five years of the loan and adjusts thereafter based on the index value plus margin. The interest rate and payment rate both change after five years with payment caps on two percent every six months and life of the loan caps of five percent. Any of the above loans can have an interest only option of up to ten years of paying interest only with no principal reduction. After the ten years the remaining principal and interest will be amortized over the remaining life of the loan.

7yr and 10yr Periodic Fixed ARM – This loan is fixed for the first seven years of the loan (or ten years in the event of a ten year Periodic Fixed ARM) and adjusts thereafter based on the index value plus margin. For more information about these loans or other loan options, please give us a call.

Reverse Mortgage Loan – This mortgage option is designed for clients 62+ years young and there to improve your cash flow.  Please give us a call for a free analysis.

Adjustable Rate Mortgage (ARM) – This is a mortgage loan in which the interest rate is scheduled to increase or decrease throughout the life of the loan. The rate is tied to a particular index and, upon terms specified in the note, the rate will change with the value of that index.

Equity Lines of Credit – An equity line of credit has predetermined dollar amounts, terms and rate structures, usually adjustable rates. Secured against real property, the funds borrowed are against the equity in the home, thus the name “equity lines of credit”. The available funds can be borrowed via check or sometimes a credit card and then repaid in full or with monthly installments.

Similar to the use of a credit card, if a balance does not exist, then payments are not required and interest is not charged, although some may have an annual fee for servicing. They are usually for a fifteen or twenty five year period.

Similar to a second mortgage, they can also be used in conjunction with a first mortgage during a purchase transaction to avoid the need for mortgage insurance at higher loan to values. Any requested funds are disbursed at the close of escrow and then are paid back on the predetermined terms.

Refinancing a loan is the process of taking a loan or loans to pay off an existing loan secured by the same property and typically by the same borrower’s.

There are essentially two types of refinance products:

•    Rate and Term
•    Cash Out

A rate and term refinance is one in which the objective is to change the interest rate (ideally lower) and the term (usually extending it) in order to obtain a lower and more manageable monthly payment. A cash out refinance is one in which a larger loan is taken out to pay off a smaller one, with the difference in cash (equity) going to the homeowner.

Apartment Loans – This type of loan is designed for buildings with greater than four units. Interest rates vary based upon the grade of unit, and income vs. expenses. Please call with your specifics, we are happy to give you a quote.

Small Commercial Loans – Small commercial loans are often offered by the SBA (Small Business Administration). These loans are for commercial spaces which are owner-occupied (up to 90% of value). There are many other commercial loan programs available and we are happy to discuss them with you at your convenience. Please call for a quote.

These materials are not from HUD or FHA and were not approved by HUD or a government agency.