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Fixed Loans
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| This loan is amortized over 30 years. The rate and monthly payment is fixed for the entire term. |
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Fixed-ARM (Adjustable Rate Mortgage) Loans
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| This loan is amortized over 30 years. The rate and monthly payment is fixed for the first 10 years. After 10 years your monthly payment will be adjusted once a year based on a new rate tied to the market by an Index plus a Margin. |
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| This loan is amortized over 30 years. The rate and monthly payment is fixed for the first 7 years. After 7 years your monthly payment will be adjusted once a year based on a new rate tied to the market by an Index plus a Margin. |
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| This loan is amortized over 30 years. The rate and monthly payment is fixed for the first 5 years. After 5 years your monthly payment will be adjusted once a year based on a new rate tied to the market by an Index plus a Margin. |
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| This loan is amortized over 30 years. The rate and monthly payment is fixed for the first 3 years. After 3 years your monthly payment will be adjusted once a year based on a new rate tied to the market by an Index plus a Margin. |
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Fixed Balloon Loans
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| This loan is amortized over 30 years. The rate and monthly payment is fixed for 7 years. The loan is due and payable at the end of 7th year. If you do not wish to pay the remaining balance at the end of the term then you must refinance this loan before the due date. |
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| his loan is amortized over 30 years. The rate and monthly payment is fixed for 7 years. The loan is due and payable at the end of 5th year. If you do not wish to pay the remaining balance at the end of the term then you must refinance this loan before the due date. |
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ARM (Adjustable Rate Mortgage) Loans
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| This loan is amortized over 30 years. The rate and monthly payment is fixed for the first year and then will be adjusted once a year based on a new rate tied to the market by an Index plus a Margin. |
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| This loan is amortized over 30 years. The rate and monthly payment is fixed for the first 6 months and then will be adjusted once a year based on a new rate tied to the market by an Index plus a Margin. |
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| This loan is amortized over 30 years. The rate and monthly payment is fixed for the first 3 months and then will be adjusted once a year based on a new rate tied to the market by an Index plus a Margin. |
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| This loan is amortized over 30 years. The rate and monthly payment is fixed for the first month and then will be adjusted once a year based on a new rate tied to the market by an Index plus a Margin. |
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Definitions
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| "APR" is a yearly rate that captures the total cost of the mortgage; such as Interest, Mortgage Insurance (MI), Loan Origination Fee (Points), lender Funding Fee, etc. |
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| The maximum amount a loan can be to be considered conforming is currently $300,700. Eligible properties for this type of loan include Single Family Residences, Town Homes, and Condominiums. For Duplex's the maximum loan amount is $323,400. For a 3-plex, $390,900 is the limit and for a 4-plex, $485,800. Loans over these amounts for each category are called Jumbo Loans. Lenders will offer better rates and programs for Conforming Loans. |
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| HELOC is a line of credit on the equity of your house. You can draw money from this account as many times as you need (up to your credit limit) and pay it back as many times as you wish. You pay interest only, and only on the balance you owe. The rate is adjustable and is the combination of an index (usually Prime) plus a fixed margin. Your monthly payment is dependent on your loan balance, the Index, and the fixed margin. You can draw money and pay it back only during the first 5 years (some lenders do it for 10 years). At the end of the 5th year, your loan balance will be amortized for 10 years with an adjusted monthly payment (some lenders amortize it over 15 years). |
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| LTV is the ratio of the loan amount to the appraised value of the property. LTV will effect the kind of rate and programs available to a borrower. The lower the LTV the better terms and programs offered by the lenders. |
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| MI is an insurance required by the lenders for loans over 80% LTV (Loan To Value) of the property. |
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| Signing an agreement with a lender that a borrower will be guaranteed a special Interest Rate if the loan is closed within a specific period of time (Lock Period), which is usually 30 or 45 days. |
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| This loan is amortized for 15 years. Your rate and monthly payment is fixed for 15 years. |
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| This loan is amortized for 30 years. Your rate and monthly payment is fixed for 15 years. At the end of the 15th Year there will be a balance on the loan, which is due and payable in one lump sum. |
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Miscellaneous
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| For some clients, a home equity loan can be the most cost effective way to convert the equity in their home into cash (such as when the rate on the first mortgage is below the current market rate.) |
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| I still have questions!
If you have not found the answer to your question, please contact us. |
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