Below are examples of loan offered in the market. Please note this is not a full list of the options available. Give us a call and we can find the perfect loan for you.
A loan which has 360 monthly payments that remain the same for the entire 30 year period after which time the loan is paid in full. The monthly payment is based on an interest rate which does not change over the term of the loan. (hence the term “fixed rate”)
This loan is the same as 30 year fixed rate loan except the life of the loan is 240 months as opposed to 360 months.
This loan has the same principles as the 30 year fixed rate loan except the life of the loan is 180 months as opposed to 360 months. Since the loan is being paid faster than either the 30 year fixed rate loan or 20 year fixed rate loan, monthly payments of this loan are higher than the other two loans.
Offer the low initial interest rate of an ARM, but the payment security of a fixed rate loan.
This type of loan has fixed monthly payments for the term of the loan (5 Years) that are based on a 30 Year repayment schedule. At the end of the 5 year term, the outstanding principle balance of the loan is due plus any unpaid interest. This loan program generally has a refinance option at the end of the five year period that gives the borrower the option to extend the loan at a fixed rate for the remaining 25 years.
Some lenders offer loan programs that provide borrowers the opportunity to obtain an approval for their loan before they select a property to purchase. Generally, such pre-approvals are subject only to a satisfactory appraisal of the property ultimately selected by the borrower. A pre-approval should not be confused with a pre-qualification, which is an unverified analysis of a borrower’s ability to qualify for a loan and is subject to verification of a borrower’s income, a borrower’s assets and a satisfactory appraisal of the property selected for purchase.
A loan is considered a 1st time homebuyer loan when it has one or more features that are available only to 1st time homebuyers. For Example, a lender may reduce its interest rate (typically by one eighth to one quarter of one percent), reduce or eliminate its closing costs and, if an adjustable rate mortgage, reduce its margin (typically of one quarter of one percent). Such a loan may also have less stringent loan qualification guidelines.