The most
common type of loan option, the traditional
fixed-rate mortgage includes monthly principal
and interest payments which never change during
the loans lifetime.
Adjustable Rate Mortgages (ARM)
Adjustable-rate
mortgages include interest payments which shift
during the loans term, depending on current
market conditions. Typically, these loans carry
a fixed-interest rate for a set period of time
before adjusting.
Hybrid ARMs (3/1 ARM, 5/1 ARM, 7/1 ARM, 10/1 ARM)
Hybrid ARM mortgages
combine features of both fixed-rate and
adjustable rate mortgages and are also known as
fixed-period ARMs.
HARP 2.0 is a
refinance option for homeowners that are
"underwater," meaning they owe more on their
home than their home is worth.
FHA home loans are
mortgages which are insured by the Federal
Housing Administration (FHA), allowing borrowers
to get low mortgage rates with a minimal down
payment.
VA loans are mortgages guaranteed by the Department of Veteran Affairs. These loans offer military veterans exceptional benefits, including low interest rates and no down payment requirement. This program was designed to help military veterans realize the American dream of home ownership.
Interest only
mortgages are home loans in which borrowers make
monthly payments solely toward the interest
accruing on the loan, rather than the principle,
for a specified period of time.
Prior to choosing a
home loan, you should know the advantages and
risks of adjustable-rate mortgages to make an
informed, prudent decision.
Commonly Used Indexes for ARMs
This article
includes a list of the most commonly used
indexes by ARM lenders that affect ARM mortgage
rates.
Balloon mortgages
include a note rate that remains fixed
initially, and the principal balance becomes due
at the end of the mortgage term. We do not
currently offer these.
Reverse Mortgages
allow senior homeowners to convert a portion of
their home equity into cash while still living
in the home.
Graduated Payment
Mortgages are loans in which mortgage payments
increase annually for a predetermined period of
time (e.g. five or ten years) and becomes fixed
for the remaining duration of the loan.
What kind of loan program is best for you?
Should you get a
fixed-rate or adjustable rate mortgage? A
conventional loan or a government loan? Deciding
which mortgage product is best for you will
depend largely on your unique circumstances, and
there is no one correct answer.
