Mortgage Programs
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| FIXED RATE LOANS |
Interest rate and payments remain the same over the term of the loan. Normally offered
for 10, 15, 20 and 30 years.
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| FIXED TO ADJUSTABLE |
Interest rate and payments remain the same over a "fixed period", usually 1, 3, 5, 7,
or 10 years. The interest rate and payments then fluctuate to a predetermined margin added to
a current index. There is a maximum that the interest rate can fluctuate. The adjustment
periods are usually 1, 3, 6, or 12 months.
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| ADJUSTABLE RATES |
Interest rate and payments remain the same until each of the adjustment periods, usually each
1, 3, 6 or 12 months. There is normally a maximum that the interest rate can fluctuate each period
and over the life of the loan.
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ADJUSTABLE RATES
POSSIBLE NEGATIVE |
Interest rate and payments remain the same until each of the adjustment periods, usually 1 or 3 months.
There is a maximum that the interest rate can fluctuate. It is possible to make a payment that is less
than the interest due, thereby increasing the amount of the loan balance.
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| BUY DOWN |
This type loan is actually a variable rate loan in that the interest rate is lower the first years of the
amortization period. This is done for easier qualification and more affordable payments the early years of home
ownership. Note that there can be an additional fee to "buy down" a mortgage.
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LOAN TO VALUE *There are loans available without mortgage insurance, but usually at slightly higher interest rates.
Payments are comparable with the 100% tax deduction (interest) advantage. 1st and 2nd combo mortgages are also
available to avoid mortgage insurance.
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General Notes |
| NON OWNER OCCUPIED |
1-4 units held for investment. Rates are normally slightly higher for this type of property due to the higher default rate.
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| 2ND MORTGAGES |
There are 2nd trust deed (mortgages) available and will go as high as 125% of the value of your home.
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| NO DOCUMENT LOANS |
Loans are available that require little or no documentation. These loans are offered at a higher rate and
less of a loan to value (LTV).
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LESS THAN A CREDIT
(sub prime) |
Most lenders offer program for less than perfect credit. The severity of the problem will dictate the rate,
loan to value (LTV) and closing costs.
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