Mortgage Programs
Fixed Rate Mortgage
Explained:
A fixed rate mortgage is beneficial to those who are looking for stability in their monthly payment, which will not go up or down through out the life of the loan. Typically, if you plan to live in your home for a long period of time, a fixed rate is optimal.
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Term Lengths: 10, 15, 20, 25, 30 years |
Adjustable Rate Mortgage
Explained:
Adjustable Rate Mortgages (ARMs) typically have a low interest rate for a fixed amount of time at the beginning of the loan. After this time, the rate then adjusts every year, depending on the current market conditions. This product is good for someone who plans on living in their house for a short period of time or those who don’t mind the variability of their payments in exchange for the initial low rate.
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Term Lengths: 5/1 and 7/1 ARM |
Federal Housing Association (FHA) Mortgage
Explained:
The FHA mortgage is a loan that is guaranteed by the government. Another advantage to an FHA mortgage is that you can qualify for the loan with limited funds for a down payment (3.5%) though there are limits to the loan amount. Also, due to more relaxed qualifying guidelines, those with less than perfect credit are able to qualify.
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Term Lengths: Fixed: 10, 15, 30 years |
FHA Streamline
This allows people with FHA mortgages to refinance to a lower rate with no costs, no new credit report and no new appraisal.
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Term Lengths: 10, 15, and 30 years |
Department of Veteran Affairs (VA) Mortgage
Explained:
Similar to the FHA mortgage, a VA mortgage allows veterans with low income and blemished credit to qualify for a loan.
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Jumbo Mortgage
Explained:
A jumbo mortgage is a mortgage that exceeds the loan amount maximum for a conforming loan, set forth by Fannie Mae and Freddie Mac. Because of this, the interest rate typically is higher and has different requirements for down payments.
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Term Lengths: Fixed: 15, 30 years ARM: 5/1 and 7/1 |