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| Fixed Rate Mortgages |
| Adjustable Rate Mortgages |
| FHA and VA programs |
| Reverse Morgages |
| Portfolio Loans |
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Fixed Rate Mortgages
Your interest rate and monthly principal and interest (P&I) payments remain the same for the life of your loan.
Available in a variety of loan term options.
Term: 30 years
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| Benefits -
Predictable monthly P&I payments allow you to budget more easily.
Protection from rising interest rates for the life of the loan, no matter how high interest rates go.
May be a good choice if you plan to stay in your home for a long time.
Considerations -
The overall interest you pay is higher on a longer-term loan than on a shorter-term loan.
On a shorter-term loan, the monthly P&I payment is typically higher than on a longer-term loan.
If you choose an interest-only option, you cannot build equity through monthly interest-only payments without making voluntary principal payments during the interest only period. |
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Adjustable Rate Mortgages
Your interest rate and monthly principal and interest (P&I) payments remain the same for an initial period of 3, 5, 7, or 10 years, then adjust annually.
Loans available in a variety of longer terms.
Includes interest rate caps that set a limit on how high your interest rate can go.
You may be able to add extra features such as interest-only payments.
Term: 30 years
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| Benefits - Typically ARMs have a lower initial interest rate than on a fixed-rate mortgage.
The interest rate cap limits the maximum amount your P&I payment may increase at each interest rate adjustment and over the life of the loan.
May provide flexibility if you expect future income growth or if you plan to move or refinance within a few years.
Considerations -
Monthly principal and interest payments may increase when the interest rate adjusts.
Your monthly principal and interest payments may change every year after the initial fixed period is over.
If you choose an interest-only option, you cannot build equity through monthly interest-only payments without making voluntary principal payments during the interest only period. |
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FHA and VA programs
FHA loan
Features -
Available in a variety of fixed-rate and adjustable-rate loan options.
Has down payment options as low as 3.5%.
May allow you to use a gift or grant for all or a portion of the down payment or closing costs.
Lets you add extra features such as a temporary buydown.
VA loan
Features -
Provides financing for qualified veterans, reservists, active duty personnel, or eligible family members.
Available in a variety of fixed-rate and adjustable-rate loan options.
Has low and no down payment options.
Allows closing costs to come from a gift or grant.
Lets you add extra features such as a temporary buydown.
Term: 30 years
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| FHA Benefits -
Requires less cash up-front for your down payment and closing costs.
Available for all income levels.
Allows a new buyer to take over the loan if you sell your home (subject to loan approval).
Allows a co-applicant to help you qualify even if the person doesn't live in the home.
Considerations -
You typically have to pay up-front and monthly FHA mortgage insurance premiums.
You can typically only have one FHA mortgage at a time.
VA Benefits -
Provides a wide range of rate, term, and cost options.
Doesn't require monthly mortgage insurance.
Provides the potential for minimal out-of-pocket expenses with seller contributions.
Considerations -
You typically have to pay a one-time VA funding fee that can be financed into the loan amount.
You can get financing for your primary residence only. |
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Reverse Morgages
For those 62 and over on their principal residence.
Reverse mortgages allow the borrower to access the equity they have in their home with minimal qualifying.
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Portfolio Loans
When conforming loans are not an alternative a portfolio has many ways of qualifying an individual for a loan. In some cases NO TAX Returns are required, in other cases the Deposits in your bank statements are used to determine income.
Many alternatives to the conventional loans.
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Unless otherwise indicated, these APR calculations are based on the following: Conforming loans (whose maximum loan amount is below $484,350 for the contiguous states, District of Columbia, and Puerto Rico or below $636,150 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $417,000 with closing costs of $8,340. Jumbo Loans (whose maximum loan amount exceed $484,350 for the contiguous states, District of Columbia, and Puerto Rico or exceed $636,150 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $1,000,000 with closing costs of $20,000. Your actual APR may be different depending upon these factors.
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