8 Questions You Must Ask When Applying for a Mortgage
Insider Secrets on How to Lower Your Interest Rate
Request an Estimate of Closing Costs
8 Mistakes Borrowers Make When Applying for a Mortgage
How Does the Debt-to-Income Ratio Work?
Loan Programs
There are many loan programs to fit almost any need. Please call and ask which loan program best fits your situation.
Recommended Programs
Use the information below to choose the best program for your need.
Years you plan to stay in the house:
Recommended Program(s):
Option Arm
Start Rate of 1%. Option Arms give you the opportunity for 4 different payment options each month. Minimum Payment, Interest Only, 30 Year Amortized Payment or a 15 Year Amortized. Payment. The Monthly Interest is calculated using a fixed margin and a floating Index. The Index is tied to the MTA which stands for a Monthly Treasury Average. (Constantly averaged over a 12 month period of time).
5 and 7 Year Balloons
Lower start rate. Some of the balloon programs may be converted to an adjustable rate or a fixed rate after the 5 or 7 years, with very low fee and attractive rate
Adjustable Rate Mortgage (ARM)
Lowest start rate Adjusts either every 6 months or every 12 months depending on program and grade.
30 Year or 15 Year Fixed Rate
Payment and Rate stay the same over the entire life of the loan
2/28 and 3/27 ARM
An ARM program that is fixed for the first 2 or 3 years, then shifts into a 6 month adjustable rate mortgage. It is a sub-prime program giving you a rate lower than the sub-prime 30-year fixed, and if you have had credit problems, it allows a window of time for credit rebuilding and seasoning. You will then want to refinance this loan.
Which Program is best for me?
Here are a few things to keep in mind when selecting a loan program.
Option Arm
Advantages:
Disadvantages:
Payment Options each month. Stated Income, Stated Assets available without fico score requirements. Unlimited Acreage allowed.
5 and 7 Year Balloons
Advantages:
Disadvantages:
Lowest starting interest rates help qualify for higher loan amounts. If you plan to sell within 2-3 years. If you expect your income to increase
Periodic payment and rate increases, builds equity Slower payment increases may affect budget.
Adjustable Rate Mortgage (ARM)
Advantages:
Disadvantages:
Lower starting rate than 30 year fixed
great for refinancing from a higher rate use when you plan a move in 5-7 years. Some are convertible to 30-yr fixed or a treasury ARM, low fees, good rates.
Loan Balance Due can Change Long Term Financial Planning If You Plan to Live There Over 7 Years.
30 Year or 15 Year Fixed Rate
Advantages:
Disadvantages:
Maximum Interest Deduction for Taxes. Higher Loan to Value allowed.
Anything over 80% will require Mortgage Insurance which is not tax deductible. Also usually a higher Interest Rate and higher Payment.
Common Questions
The following may help in answering some of your questions.
