Thirty-Year Fixed Rate Mortgage
The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.
Fifteen-Year Fixed Rate Mortgage
This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate—and you’ll own your home twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn’t that great.
Hybrid ARM (3/1 ARM, 5/1 ARM, 7/1 ARM)
These increasingly popular ARMS—also called 3/1, 5/1 or 7/1—can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a “5/1 loan” has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It’s a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.
2/1 Buy Down Mortgage
The 2/1 Buy-Down Mortgage allows the borrower to qualify at below market rates so they can borrow more. The initial starting interest rate increases by 1% at the end of the first year and adjusts again by another 1% at the end of the second year. It then remains at a fixed interest rate for the remainder of the loan term. Borrowers often refinance at the end of the second year to obtain the best long-term rates. However, keeping the loan in place even for three full years or more will keep their average interest rate in line with the original market conditions.
Government backed residential loans that permit a lower down payment ( 3.5% down ) and have additional flexible credit qualifying options. FHA loans also permit gifts for down payment. This includes loans called FHA Streamline refinances, which allow you to reduce the rate or term of a current FHA loan without requiring an appraisal, income or asset documents in most cases. FHA loans may have a maximum mortgage limit depending on where your property is located based on medium home prices for your area. FHA mortgages require Upfront Mortgage insurance and a month mortgage insurance premium.
Government backed residential loans for American veterans, military members currently serving, reservists and select surviving spouses. This loan type requires no money down, depending on the loan size and geographic area. VA loans also have different requirements based on the previous usage of the Veterans entitlement. There is a VA funding fee required that is rolled into the loan amount.
A loan guaranteed by the USDA Rural Development Housing Program, offered in rural areas with certain income level and geographical restrictions. This program requires 0 money down and often permits closing costs to be rolled up into the loan amount. There is an upfront guarantee fee required along with a monthly mortgage insurance payment.
Non-QM Loan Programs:
We have a large suite of Non-QM products, which are loan programs that may not fit your basic “In the box” requirements as required on the products listed above. Many of our Non-Qm programs allow for income to be verified utilizing documentation other than tax returns, ( Bank statements, cash flow, P&L’s, or Market rents for Investment properties).
There are several types of amortizations including 40 year terms and Interest only. Within our Non-QM product suite we include Foreign Nationals & ITIN, products as well as Condo-Tels.
Ask Your loan officer about our many other products – so many we can not fit them all 🙂